Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-05-18
Progressive W0reh0uslng.

georgia bankers and warehouse own
ers are showing a most cOmmendable
public spirit in the movement to place cot
ton warehouses on a uniform basis by means
of the United States warehouse act.
Recently the State Superintendent of
Banking, Hon. T. R. Bennett, addressed a
letter to the State banks of Georgia request
ing them to use their good Offices in bring
ing to the attention of their local warehouse
owners the great advantage of bonded ware
houses distinguished from non-bonded
warehouses. Immediately there came gen
eral response.
Now it developes that the bankers of Bu-
ford in Gwinnett county, Lexington in Ogle-
thorpe county, and others, are going SO far
as to organize companies to build ware
houses which will be bonded under the terms
of the federal law. In other words, they are
not only Interested to the extent OF being
ready to assist in bonding their local ware
houses; but further than that are taking the
lead in building additional warehouses to
supplement the storage tacallltles already IN
existence
Superintendent Benefits letters show that
the movement is we'll under way already in
more than fifty counties, which certainly IS
a most encouraging start. The probabilities
are that bonded warehouses will be estab-
lished in hundred counties by the opening
of the fall season when the farmers begin
to gather their crop. In tOdayS issue OF The
Journal is published notice by the otton
Warehouse Company of Atlanta that they
are applying for bond under the 4eflnS VI
the federal act.
AS pointed out by Superintendent Bennett
and others who are cooperating IN the pond
ed warehouse movement, the condltlons I'M
posed by the federal law are not difficult
to comply with. The rate Of premium for
the bond is quite moderate; the require
ments as to construction of the warehouse
are not at, all difficult; the bookkeeping
involved is nothing more than the book-keep-
ing involved in the conduct OF almost
No y1cY noti m
federal inspectors are not IN any sense med
alesome, but are merely such inspections as
any warehouseman would be glao TO nave
made. -,
q very strong point in favor OF bonded
warehouses is the lower rate of fire 1nsur-
ance which they can obtain. Recently the
Southeastern Underwriters association, as
means of encouraging warehouse owners 10
bond themselves, authorized a general re-
duction Of 20 per cent in fire insurance rates
For bonded warehouses. This IS an item worm
considering from the warehousemans stand
point. $1,000. -, ,
ments favor the bonded warehouse. 1He
standard receipt issued by ponueu o %" 80
house is a much better class OF collateral !oI
hank loan than the non-standafd receipt
issued by a non-bonded warehouse. panhel
handling bonded warehouse fecelptS - dp!o
to carry a much larger volume OIL loans. MS
handed warehouse receipts are approved
n,itbont further investigation by State bank
examiners whereas it may be necessary III
certain cases for State bank examiners "
cback IN the actual cotton covered by nom
bonded warehouse receipts. A bonded re: re,
CENT. therefore, enjoys the same recognltlon
as the very highest class of banking secuE7
ity. 1t places the farmers loan on S'flo'l'
business basis. 7o,-,o,, ro+e
Whether the farmer is given lower rate s
of interest or not, these other enumerat ave-
advantages and benefits are all on tne ' stn1
of the bonded warehouse. The preference 1,a
$3.50 oro handed Efforts already are un-
derwav in that direction. But the main thlng
now is to get the warehouses under oo No.
and get the advantages over and ABOVE Tic
| consideration of interest rates.