The herald and news. [volume] (Newberry S.C.) 1903-1937, 1917-06-19

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OF South Carolina as we'll as by the
largest financial institutions of the
country. Such receipt is easily nego-
table at. the value of the cotton on
the day the loan is made; every ele-
ment of risk is eliminated, for the
receipt is always worn more than
the face value of the note given for
the loan.
(S) The State Warehouse System
; has enabled farmers to market their
cotton crop gradually and only when
the price is satisfactory, IN otner
words, to sell cotton only when there
is an active demand for it by consum-
ing plants. The Commissioner is now
developing a plan for State System
of cotton marketing so that the pro-
ducers, rather than, the spectators,
may be able to supply the monthly de-
mands of the mills.
(9) Warehouses with capacity OF
200 to 500 bales can be constructed in
the rural districts or on the planta-
ticn at a cost but little in excess OF
Isl 90 a bale, and a 1000 bale ware
! house can be built for less rnan $1.0o
bale. This means warehouse con
structed of metal. Plans, blueprinti
and specifications meeting all the re-
quireme1ts. of insurance companies
Will be furnished free of cost by the
State Warehouse Commissioner.
Q0) The community or plantation
warehouse can be made part of the
State Warehouse System in the fol-
lowing manner: The Commissioner
rents the warehouse at a nominal
rental of $1.00 year, and then is
sues to the owners commission or II
cense to operate the warehouse charg-
ing a fee of $500 for this commission
or license. The Commissioner ap-
points a suitable person warehouse
, man, and this warehouseman enters
into a bond (ranging from $1,000 to
$4,000 for the faithful performance
of his duties. The warehouse thus
becomes a part of the State Ware
, house System and is given a number
When warehouseman is ready for bu-
, siness, the Commissioner has the
warehouse covered by a blanket in
surance policy to amount Of $4,000.
Daily reports of cotton stored in or
+. withdrawn from the warehouse are
made to the Office of the State Com
/ missioner. A record of each and ev-
cry transaction of the warehouseman
is kept in the Commissioners office.
QD The owners of a community
or plantation warehouse can store
at actual cost: three cents bale a
month for time cotton is in storage
and the insurance. The insurance rate
is pro-rated on cotton stored for less
! time than a year, The cotton is val
! ued at market price Of grades on day
cotton is stored and the amount Of
insurance is determined by the week
ly average of price of cotton during
, the period of storage The charge OF
| &c a bale a month goes toward the
! expense of the Commissioner Office.
The insurance is paid monthly, while
the storage charges are not paid un-
til cotton is withdrawn from ware
house. All persons not interested in
the ownership OF the warehouse pay
| usual charges for storage, and these
! charges include the Sc a bale a month
and the cost Of insurance.
Q2) The farmer having cotton in
TO q
Warehouse System has full protection
against loss-under the bond Of the
! local warehouseman, under the bond
of the State Commissioner, and under
an insurance policy of $4,000 or more.
The cotton is stored in the community
where grown and can be sold any
hour of any day of the year.
The farmers of each community in
every cotton producing county in
South Carolina should operate ware
house for the accommodation of pa
irons; every farmer making 100 bales
of cotton should have a plantation
warehouse with capacity sufficient to
store their own and their neighbor's
cotton. If there were enough ware
houses in the State Warehouse Sys-
tenn to store all the cotton grown IN
the State (about 100000 bales), the
farmers of South Carolina could con-
troll the marketing of their cotton
crops, selling strictly on grades and
only when prices were satisfactory.
W. G. SMITH,
State Warehouse Commissioner.
--GNBD