Pine Bluff daily graphic., 1920-01-14
s7ANDAD COMPRESS
 'CORPOATIOn WILL. 4: soOfBE LAUNCHED
SoutherY and Eastern Men Corbine in Gigantic
 Plan

Washington, D. C., Jan. 13--Ar- rangements are practically com plete for the formation of gigan- E, corporation to combine and y..ndardize a large portion of the cotton compressing and wara- housing facilities of the South and to establish new ones on an unlimited scale throughout the Cotton Belt. Announcement of the undertaking was made today by Rufus R. Wilson, secretary of the National Association of Cot ton Manufacturers. Mir, Wilson is also permanent secretary of the World Cotton Conference, which at it's recent meeting in New Or leans, declared adequate ware housing to be a "paramount ne- cessity" in handling and distribut ing the American cotton crop Identified with the undertaking are many prominent Southern and Eastern cotton spinners, produc CTS, brokers and bankers. Arrange ments already have been made, de- clares MT. Wilson, for acquiring established properties worth mil lions, including no fewer than siXty-five compress plants.
 The corporation now in proces:; of formation will be known as the Union Warehouse and Compress Company. The organization is be- ing perfected by the Union Cotton Warehouse Organization corpora tion, which has had experts survey the whole field of warchousing and compressing of cotton and work out plans of development that have been taken on scores of congresses and warehouses, as well as sites for new ones in va rious localities of the South where additional facilities are needed.
 Facilities Small.
 It has long been well known ir the cotton industry." says Mr Wilson, "that sufficient facilities already exist to house most of the cotton offered for storage. How ever, the allocation of these ware houses is such that they do not adequately serve the storage needs of the producer, merchant and spinner. They are not located with respect to distribution so a.; to best serve the needs of thc trade. For this reason much cot ton that ought to be stored is now kept in open lots. streets and or platforms, with the result that each years crop suffers millions of dollars worth of loss from country damage. Many of the existing warehouses are so poorly constructed and carelessly operat- ed that insurance rat2s 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 declar; they would rather loan money or cotton than on real estate. But the trouble has been, and still is with the character of the ware house receipts as evidence of the cotton's safety, ownership, weight and deliverability.
 Fully conversant with these conditions. and the need for i'm proving them both in the interest of the grower and spinner, group of men concerned from various an- gles with tn ecotton industry arc organizing a corporation for the purpose of standardizing ware houses in both the South and the North"
 Inasmuch as cotton warehousing and compressing are allied opera tions, the Union Warehouse and Compress Company will enter ex- tensively into the compression of cotton, with the view of compress ing as many bales as possible to ar even density. High density presses will not be used, and at most of them warehousing facil- ities will be increased.
 Take Over Plants.
 The compress plants to be taken over by the new organization, MT Wilson announces, are those ot the Atlantic Compress Company with 12 plants in Florida, Georgia and Alabama; those of the New burger Cotton Company with 26 plants in Arkansas, Tennessee: Mississippi and Louisiana, and those of thhe St. Louis Compress Company, controlled by the Les ser-Goldman interests, chiefly Tn 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 con centration points like Norfolk, Charleston, Savannah, Atlanta: Mobile, Houston, St. Louis and Memphis, and to supplying them with increased and standardized service
 In addition, arrangements have sbeen made to take over a largss number of warehouses scattered throughout the Cotton Belt, and to erect additional ores both in the South and the East. Detail announcement of these will be made in a few days.
 It is also planned to organ!ze a subsidiary corporation whose business will be to buy and sell cotton receipts and acceptances. thus facilitating the financing of cotton in storage.
 The movement is in line with rPcOp,n tiopu OoaHn hV repre-