The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-01-18
half dollars. The legislature, {

nall dollars. Inc legislature, OIL
course. would have to adopt the stan
dards fixed by the federal government.
and enforce these standards in the
state AS it is now, if the state ware
house cotton were graded according to
the federal standards, as the act re-
quires, its classification would be a
grade above the general local classifi-
cation, and without a law enforcing
these standards in this state, it would
have to be sold at one grade less than
the state guarantees.
| This very fact, however, until the
state enforces these standards and
provides for proper system of grad
! ing, is an ample protection to the state
in its guarantee of grades. The act
provides that the state warehouse
commissioner shall accept as authori-
tative the standards and classifcations
of cotton established by the federal
government" and Of course the guar
antee of the state as to the grade must
be construed in the light Of this Sec
! ton of the act. Therefore, in it's guar
antee the state always has margin,
under the present system of from "a
to so points, the cotton being graded
and guaranteed under the standards
We are forced to sell at now, which,
as pointed out, are grade lower tnan
the real legal grades, giving the state
the advantage Of this big margin Of
at least $1.25 bale.
i earnestly recommend that you pass
an act adopting the federal standards
for the state at large, along the line
| Of the Farmers union bill, which would
give an adequate fund for the employ
ment of expert graders, which is to-
tally lacking now, and which would
amply protect the state, and net the
cotton growers over a million dollars
a year, which is now simply taken
from them under the same method as
that employed by the ordinary highway
robber.
I submit for your consideration a
measure to provide for the grading of
cotton in South Carolina.
| Direct Sales.
In view of the war raging in Europe
and upon the seas, l. have made only
one attempt to sell cotton direct, and
l find that this is only possible on a
large scale. 1t is. not an easy thing
to invade the established business
methods of century; but / am satis-
fed that, had it not been for the war,
l would have been able to perfect ar
rangements along this line. I have
established some connections through
which, in the future, I am confident
! that it can be done. The commissions
on the sales of the cotton now on stor-
age would reimburse the state. several
times over for the whole amount which
it nas expended upon the establish
ment and maintenance of the state
warehouse system.
Insurance.
The insurance feature has ental.ed a
very difficult task. Starting as We did
in the midst of the cotton season, most
of the cotton on storage in the houses
which we took over had already been
insured locally. We found solidly uni
form rates. The rate for country cot
ton was $3.50 per hundred dollars, and
in some instances as nigh as 81. This,
in our judgment, was exorbitant and
oppressive. We began fight for lower
rates, and the comparative statement
of rates submitted in this report shows
what has beeni accomplished along this
line. THE country rate of $3.50. with
short term cancellation, has been re-
.duced to $158,Tw pro rata cancela-
ton. the pro rata cancellation in itself
being an additional saving Of about
3S per cent. Other rates have been sub
stantially reduced, and we expect to
secure "a still further reduction Of 25
per cent.
At first We attempted to work
through the regular channels, which
gave a reduction of 10 per cent in favor
OF state controlled warehouses. We
soon found, however, that the rates
enforced by the great insurance trust
known as the Southeastern Under
writer's association were practically
pronibitive of the advantageous storing
of cotton. Their enmity was incurred
by our efforts to lower the rates, and
one of the large agencies located IN
the city of Columbia, with which we
were doing business: refused longer to
| oorrv 4ho country risks or to cover