The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-10-16
WILL SHIP COTTON
TO GERMANY TO
Be spun FOR TOLL
New Company, Acting as
Agent for Shipper, Will
Then Sell Goods in-Marts Of
World.

Plans for shipping low-grade cot
ton from the Mississippi valley to
Germany and having II manufactured
in the latter country on the toll sys-
tenn, have been perfected by Gerald
FITZGERALD, lawyer and banker OF
Clarksdaie, Miss.
Mr.. FitzGerald has already tried
the feasibility OF the plan on a mod
crate scale through the medium of
| the business of a personal corpora
| ton which he organized with small
capital, and he has received some of
the goods manufactured in Germany
from lower grade American cotton.
The plan succeeded so well and Mr..
t1tzGerald was so impressed with the
possibilities in trade in this channel
that he has decided to organize q
company with sufficient capital to
carry on the business on a scale JUS
titled by the large amount of low
grade cotton to be disposed of in
the Mississippi and Arkansas deltas,
and the ready outlet for goods made
from this cotton in the marts of
the world.
While the corporation is merely in
the initial stages of its organization,
Mr.. FitzGerald has the names of
some OF the most prominent finan-
ciers and planters in the central val
ley who are backing his undertaking.
The new concern will be known as
the Mississippi Delta Cotton Export
and Trading company. The central
office will probably be in Memphis.
The plan, briefly, contemplates the
organization of a company with a
capitalization of 100000 to act as
agent of shippers of cotton to Ger
many. 1t Is expected that nearly, IL
not quite, all these shippers will be
either growers or factors. The capt.
talization is thought to be large
enough to handle $500 bales of cot
ton at one time, and of course, by
operating continuously the turnover
will be sufficient to take care of all
cotton which may be offered during
a season.
All low-grade cotton offered will
be shipped to Germany to be manu-
featured into yarns and cloth. The
mill operators will be allowed to re-
tain a mertain part of the finished
product as their toll for the work of
The remainder, still
the property of the shipper, will be
sold in the markets of the Orient,
Southern Europe, South America and
any other marts where this class of
goods may be in demand. Incident
ally, Mr.. FitzGerald stated that there |
Is at the moment good demand in
the United States for German full
fashioned hosiery, but that the heavy
duty of 20 per cent for import into
this country would probably make it |
more profitable to sell their product
Mr.. Fitzgerald stated that he all
ready had agreements with 81 mills |
In Czech0 Slovakia and Germany to
American low grade |
cotton on the proposed basis. He
also has established selling agencies |
in various parts of the Orient, South |
ern Europe and South America, and
has made financial connections in
New York and foreign centers.
The company will act as agent for
anyone wishing to ship low-grade |
cotton to Germany and will handle |
the transaction throughout all the |
stages or shipment manufacture and |
sale OF the finished product for the |
shlpper, using its capital to cover
freight, insurance and other charges |
Mr.. FitzGerald stated that he be- |
ieved that fully 100000 bales of |
ow-grade cotton could be disposed |
IF to Germany in this manner, greatly |
10 the advantage Of both the Ger
mans, who need the raw material,
and the growers and factors in this |
who are heavily burdened |
With big supply of low grade stuff |
or which there is little or no demand
n the United States.
Some of the prominent men back
ng the undertaking are: V. p. Hol-
and. president of the Planters bank.
Clarksdale, Miss; r. N. McWilliams,
president fthe Delta Bank and |
Ernst Co., Clarksdale; ]. o. Lamkin,
president of the Commercial bank,
Clarksdale; Senator Leroy Percy,
ireenville; w. p. Kretschmar, presi-
lent Commercial Savings bank.
George T. Webb. cotton
actor Memphis, Tenn; w. A. Gage
cotton factor. Memphis; L. Sternber-
ser. cotton factor, Memphis; G. r.
lawyer Memphis, and a
score Of others.