The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1920-07-08
OUR SYSTEM OF WAREHOUSES.
WHAT 1T SHOULD BE
No. Type of Warehouse Organ


tEditor's Note: This is the first
OF series of articles by J. M. Work.
man, Warehouse Engineer. who is
making headquarters at Raleigh,
serving the State Department Of Agri-
culture in the development of cotton
warehouses. Mr.. Workman has drawn
plans for the Dillon County Ware
house and Market Corporation.)
The time has come when the far
mers of South Carolina are in po-
sition to become independent in the
growing and marketing of their
crops. The recent years of prosperity
have seen sufficient accumulation or
capital in the hands of the farmer to
enable him to place his production
and marketing on a sound business
basis. Upon his doing so depends IN
a large measure his hold upon future
prosperity. The first requisite for bus
mess organization among farmers IS
their products. The erection OF stor-
age warehouses under local and ef-
fieient management is the key to the
marketing problem OF the farmer.
In providing storage facilities the
local physical protection of the pro-
duct to be stored, but must also see
that the organization is Of such
strength and development along busi--
ness lines that the patron of the COM
pany will be assured every reasonable
facility for financing his products in
storage. Upon this depends the abili-
ty of the farmer to sell when market
conditions and his own situation rem
der disposal of his crop most advan-
tageous to him.
The activity of the warehouse COM
pany must not cease with the provis-
lon of physical protection OF the
products and financial protection Of
their owner, but should be so consti-
.tuted that the warehouse may serve
as place of business fer its patrons,
enabling them both individually and
collectively to negotiate the most ad-
vantageous sales. 1t is not advisable,
however, that the warehouse COM
pany engage in the actual purchase
and sale OF commodities stored.
Advantageous marketing may be
complished simply by the assembly
to buyers. In this service the ware
house management may act as sales
agent for its patrons, making sales
continuously for on special days when
q number of buyers are invited to be
present. Perhaps still more advanta-
geous sales made through the for.
nation of local cooperative marketing
associations incorporated under the
laws Of the State, or, intermediate
between these methods several indi-
viduals may club togther and joint
ly arrange for sales OF their products.
Where such systems are followed il
Is not unusual for farmers to secure
prices materially above market quo
tations, and often to effect sales
where otherwise they could not in
dividually secure market.
An important point for considera-
ton in selecting a building design
or type Of construction is the factor
OF depreciation. yet this is consid-
Grafton which Is all too often over
looked. It should be remembered that
deterioration sets in the moment a
building Is erected. The effect of time
may be SO slow as to be entirely over
lOOk6Q, UuI IL lauoI bO 2SA1SASSASS
that every building is affected by time
and usage. This depreciation may be
as high as 10 of the investment cost,
while with a building constructed OF
reinforced concrete the depreciation
cost may be easily as low as 2 per
cent. These sums should be consid-
cred as a part Of the operating cost
iust as much as the item OF labor or
repairs.
wnle the natural inclination OF
the layman in considering warehouse
plans is to think Of the kind OF bull
ing he will have, a moments reflec-
ton will show that this Is a matter
for secondary consideration, import
ant though it is. He should first con-
slider the character of service tn,
warehouse company will render and
the scope of its organization.
In some sections Of the country
small local warehouses have sprung
up, which substantially are privately
owned and privately operated. Such
warehouses meet. the first requisite
for cotton storage that they afforo
physical protection. but as practicai
matter, individual ownership and op-
GRAFTON affects very adversely the IL
nancial service which such warehouse
may render. The necessarily small
scale of operation renders adequate
fire protection with low insurance
rate impracticable. The operating ex.
penses of sue warehouses may, OF
course, vary from negligible to an
extremely heavy charge, depending
upon how closely the warehouse al
fo-ds service only to the individual
who owns it.
Next comes the small town ware
house having a storage capacity o.
perhaps two to five thousand bales
OF cotton, operated by corporation,
individual or partnership under sucn
conditions that its receipts issued un-
der the State or Federal superylsioA
may be satisfactory for security pur-
poses. However. this warehouse, IN
many instances, cannot afford such
fire protection ss will enable 1t t.
vSatoo onPficiantlv lnN.