Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-12-23
OFFER TOFORM
COTTON POOL IS
TURNED DOWN

That large financial interests for
several weeks have been engaged in
an effort to form with the Amer
lean Cotton association a pool of two
million bales of cotton. and that the
proposal has been declined by J. S.
Wannamaker. president of the asso-
citation was the statement made by Mr..
Wannamaker Friday while in Atlanta
conterring with the headquarters
staff of the association in this city.
The suggested pool, if made, would
have been the largest in the history
OF the cotton industry, Mr.. Wanna
maker said. and would have involved
practically the entire existing sup
ply of raw cotton. His statement
giving the details of the negotiations,
as given out from headquarters of
the association. is as follows.
agencies stated as representing
large financial interests have for
several weeks made intense and per-
sistent confidential efforts to secure
the consent of j. S. Wannamaker,
president Of the American Cotton
association, to enter into a combina-
ton for pooling 100000 bales Of
cotton by members of the associa-
ton. The proposition guaranteed an
advance cash payment to the holders
at present market prices; the mem
bers of the association so pooling
being thereby guaranteed against
market; and the members to be paid
loss from any future decline in the
one-half of the advance in price at
any date they desired to make final
settlement between the date of the
pooling transaction and the first day
Of August, 1920.
"This is The greatest pooling
proposition ever suggested from
strong financial interests in the
history of the cotton industry. Aft
er several conferences which care
fully considered the proposal, it has
been definitely and positively de-
clined by the president of the Amer
lean Cotton association for the fol-
lowing sound and specific reasons:
First: Because it is believed that
such a pooling agreement, no mat
ter how highly financed, would be
violative Of the Sherman antitrust
law, and violative of safe and con-
sentative business and banking rules
in the marketing of a great product
such as cotton.
Second: Because prevailing prices
for spot cotton are far below the
intrinsic value of the staple based
upon a system of marketing the
crop according 20 the legitimate laws
Of supply and demand, and upon the
present prices of the manufactured
product.
Third: Because with the present
L.
local bankers and the federal re-
serve bank system, the farmers can
finance their cotton, market the
same slowly to meet the needs of the
spinners, and secure the full value
of the advances in future prices
which are certain to be realized re-
sulting from a well-known famine
now facing the raw cotton supply of
the world.
"This statement regarding the
shortage of spot cotton is confirmed
by the best experts on the situation
in this country, and further by the
great English expert on cotton, Pro-
fessor John A. Todd, who believes
an enormous shortage of raw cotton
faces the entire spinning world be-
fore the 1920 crop will become avail
able, regardless Of the enforcement
of the strictest economy on the part
of the consuming mills.
'"The American Cotton association
is determined to adhere strictly to
the rules and regulations of safe,
sound and conservative business
principles in the solution of every
economic problem facing the future
handling and marketing of the
south's great staple crop in the in
terestS of it's membership"
Mr.. Wannamaker passed through
Atlanta on his way to Louisiana and
Texas to confer with officials of the
state divisions of the American Cot
ton association in those states. He
came here from meeting in Raleigh,
where a North Carolina division of
the association was formed. In dis
cusSfng the association and the gem
eral cotton outlook, Mr.. Wannamaker
said dealers in cotton futures are in
the worst predicament today in the
history of the cotton exchanges, as
they have sold large quantities of
cotton for delivery this winter, and
the holders of the contracts are de-
handing the delivery or actual cot
ton instead of the payment of mar
gins.
- Co.. @