The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1920-01-05
PLAN CORPORATION
TO COMPRESS AND
WAREHOUSE COTTON

Washington, Jan. 1.-Announcea
ment is made here that plans are
practically completed for the forma-
ton of large corporation to co n
bine and standardize large portion
of the cotton compressing and ware
housing facilities of the southern
states and to establish new ware
houses. Several Georgia cotton
financiers are listed as supporters of
the plan. Rufus R. Wilson, secre-
tary of the National Association Of
cotton manufacturers and secretary
of the world cotton conference, made
the announcement.
At the recent New Orleans meet
ing it was declared that additional
warehouse facilities were para
mount necessity in handling of the
cotton crop. Southern and eastern
cotton growers, spinners, producers
and bankers are enlisted in the un-
dertaking according to Mr.. Wilson,
and experts are now conducting
survey of the whole field of ware
housing and compression of cotton
and taking options on many COM
o,,5 ,,o ho,,coc
1t has long been we'll known in
cotton industry" says Mr.. Wilson,
''that sufficient facilities already ex-
list to house most of the cotton Of
fered for storage. However, the To-
cations of these warehouses in such
that they do not adequately serve
the storage needs of the producers,
merchants and spinners. They are
located with respect to distribution
so as to best serve the needs of the
trade.
Millions Lost Yearly
For this reason. much cotton that
ought to be stored is now kept in
open lots, streets and on platforms,
with the result that each years crop
suffers millions of dollars worth of
loss from Country DAMAGE" many
of the existing ware houses are so
poorly constructed and carelessly
operated that insurance rates for
cotton stored in them are abnormally
high and receipts for stored stocks
are, in many cases, unsatisfactory
collateral for bank loans.
"Many southern bankers declare
they would rather loan money on
cotton than on real estate" says Mr..
Wilson, "but the trouble has been,
rand still is, with the character of the
Warehou-e receipts as evidence of
the cotton's safety, ownership,
weight and deliverability.
"Fully conver3ant with these con-
ditions, and the need for improving
them both in the interest of growers
and spinners, a group of men con-
cerncd from various angles with the
cot, on industry are organizing cor
ipora'ion fer the purpose of stand
Iardizing the warehouses in both the
iSouth and the nor.h."
The compress plants to be taken
over by the new organization, Mr..
Wilson announces, are those of the
Atlantic compress company, with
twelve plants in Florida, Georgia and
Alabama, those of the Newburger
Cotton company, with twenty-six
plants in Arkansas, Tennessee, Mis-
sissippi and Louisiana, and those of
the st. Louis compress company,
controlled by the Lesser-Goldman
interests, chiefly in Arkansas and
Missouri. Ten scattered presses will
be taken over.
Special attention will be paid by
the company to the compress and
storage facilities at big concentra-
ton points like Norfolk, Charleston,
Savannah, Atlanta, Mobile, Houston,
st. Louis and Memphis, and to sup
plying them with increased and
standardized service. In addition. ar
arrangements have been made to take
over a large number of warehouses
scattered throughout the cotton
belt, and to erect additional ones
both in the south and the east. De-
tailed announcement of those will ho