The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-04-10
BIG COTTON CO.
WILL ORGANIZE
TO MOVE STAPLE
Overwhelming Suggestion Ap.
proved Company viii Have
Possibly 100000, ,OO0
Capital.
THREE HUNDRED MEN
ATTEND CONVENTION
New Organization Not to
SuppIant, But to Supple
ment Old System Of Cotton
Expectation.


Preliminary steps toward the forma.
ton Of the proposed $50 900 to SloO,.
900 cotton export corporation were
taken by the convention called to dis
cuss the proposition before the first
session adjourned Thursday at 1isl
O'Clock Mt the Goodwin Institute
by q unanimous vote tho convention
decided upon the organization OF the
corporation along the lines laid dowH
In the address OF Senator Robert l..
owen and w, +, @, Harding, governoi
OF the federal reserve board, both "
whom addressed the convention during
the morning session,
The motion, including the appoint.
ment of an organization committee Of
three members from each cotton-grow,
Ing state, was briefly discussed, Five
other members are to be added by thu
chairman OF the convention, Gov. Pleas.
ant, OF Louisiana.
Report Of the names Of the commit
teemen are to be made az the reasgein.
bling OF the convention Thursday afters
noon. The selection Of the three mem.
bers Is being made by the delegates
present from each state.
Every cotton growing state Ia rep~
resented at the meeting, about 800
delegates being present from outside
Memphis, among them being some OF
the most prominent bankers, business
men and planters, with scores OF cotton
buyers and others interested in some
phase OF the cotton trade,
Prolonged cheers greeted the state-
ment Of Gov. Harding. as he concluded
his address with the statement that
while he could not, on account OF his
official position with the government,
take any part In the proposed oreani-
cation, he wanted It understood that
as u Southerner he Ia proud OF the
action taken by the cotton growing in-
terests In their patriotic attitude in res
dueing thein cotton acreage and at the
sSs gsinE themselyss nS Yea " m.
and chat II Siied q sSe the proposed
cotton expotS corporation directed sole
ly by Southerners, as q strictly pro-
South, pro-cotton organization.
Owen Originated Idea.
Senator owen was then introduced
as the one by whom the plan for the
| formation Of great cotton export as
| sociation was first suggested to Gov,
Harding after he returned from a tour
Of several weeks in England and
| France.
Senator owen said in part:
"Nou who are assembled here. repre-
| sentlng the cotton producers, the mer.
chants ana bankers who finance the
production, and the factors, and cotton
buyers and bankers who finance the
| NNlllibENlhl NklN VI NptNuIlt Iluhl IdhlAG
with great force the importance Of hav-
Ing an improved method for the mar
keting Of this great product. II all
| tho cotton of the world were in the
hands OF one seller, that seller could
measurably dictate the price and terms
at which cotton should sell II all the
buyers OF the world were organized
and acted through one agency, they
could measurably dictate the price at
which cotton could be bought.
1T is neither practicable nor desir.
able that all the cotton should be
bought through one agency, nor be
sold through one agency.
There are many cotton spinners' as
sociatlOns that are organized for the
purpose OF cooperative buying; and
they measurably protect themselves by
buying when cotton is cheap, storing
It, and protecting themselves against
the fluctuation Of the price of cotton,
and SO the sellers OF cotton by co-opera-
tion can measurably protect their in
terests, l venture to remind you that
the fluctuation in the prlco OF a bale
OF cotton during the single wear mas
varied, during the last 20 years. from
$l3 n baie to $50 4 bale, and has aver
aged one year with another, $27 a
bale, annual variation, This loss fails
largely on the country Of production,
Farmer Gets Low Price.
Ordinarily the low price takes plact
when the new crop comes in and tbs
warehouslng space becomes overcrowd,
ed and the cotton market becomes
congested Then, on the other hand
as the demand exceeds the current
supply, the price of cotton rises, nat,
4 urally
; III there were organized a very large
cotton growers export association fuI
the marketing OF the cotton Of tn,
; Southwest, many obvious advantages
would ensue:
"First-A corporation with $50, 900 90.
! capital as n margin would be able y
systematically arrange and provid,
storage on cheap terms, II would b.
In position to provide Transportation
more economically than smalf ship
pers because such a corporation coult
charter or own its own boats and com
mand better railway accommodation.
ut could provide a means for carry.
2 ing its own insurance, economically.
at would have IN enormous credit
power with its 0.000, 900 capital Il
, United states bonds and cotton II
4 transit and In process OF manufacture
a Such u corporation could, IL necessary
withhold It's cotton from the marke
3 so as to supply only the actual need
0 OF the market. Such corporation
would not be forced to sell Its cottol
because Of any temporary slack In de
mand.
! above all, such corporation con
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