Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-03-04
STANDARD GRADING
STRONG POINT IN
COOPERATIVE PLAN
Continued from Page II

with every detail of the associa-
TONS operation. We are doing
our utmost to inform and edu-
cate them, and we are making
satisfactory progress.
Disadvantages Outweighed
AS I remarked in my dispatch
Sunday, it would be futile and
foolish to say that the lco-opera-
tive system as thus far devel-i
oped is perfect. It has worked
some handships on country bank
ers, country merchants and, per.
haps, on some of it's members.
but it is my belief that it's adj
vantages and benefits far out
weigh it's disadvantages and in
conveniences; moreover, the OBJ
jections are not insurmountable
, and can be remedied.
The chief objections that I
have heard from bankers, espe-
cially, is that the system has in
terfered more or less seriously
with liquidation in the country.
1t is claimed that title to his
crop having passed from the indi-
vidual to the cotton association,
the farmer cannot satisfy out
standing obligations with his To-
cal banks and supply merchants
until his pooled cotton has been
sold out and he has been rei1n-l
bursed by the association. There
is some basis for this criticism,
but the premise does not state
the facts accurately.
Under the plan of operation
and 1 found this to be absolutely
true-the Oklahoma association
advanced to it's members $50 on
every bale Of cotton they deliv-
cred the minute it was ginned
and delivered either. to the rail
road for shipment or toNan Access
sible compress. )
Thus, it is apparent, that ev-
cry association member Pc
ceived $50 a bale for all of the
cotton he made, and this money
should have gone Immediately
into the channels of business to
liquidate bank debts and other
obligations.
It amounted in the aggregate
to $4,550,000 on the $1,000 bales
of cotton handled by the assocla-
ton. That was 10 cents a pound.
Since the initial advance, the as
ISOLATION has distributed SIS per
bale, or $1,365,000. AS the pools
are gradually closed out add.
tional advances Will be made.
$1O1.63 Per Bale
Up to and including January Z,
last, the average price actually
received by the association for
the cotton it had sold was 1886
cents a pound. Assuming that
the average for the seasons crop
doesn't fall under this figure
and the chances are that it Will
be higher-the association Will
receive, in the aggregate, So
24S, $50 for the 1000 bales of it's
members, an average of $101.63 a
bale.
>By, subtracting the money al
ready advanced-$65 bale, or
S5,915,0O0 in all-from the prob
able value of the $1,000 bales. it
is seen that the cooperative sys-
tenn. in fact, is today withhold
ing from circulation in the coun.
trH.. as a medium for the liquida-
ton of credits, only $2,333,330.
The contention of the officers
of the association is that had
all Of the members been forced
to dump their cotton on the
market to liquiAate pressing de-
mands, the chances are that
many of them would have re-
ceiyed far less than the ~$f01.6S
per bale average that seems as
sured and some of them would
have received actually little
more than the $65, per bale that
already has been advanced.
However reasonable and logi-
cad or unreasonable and illogical
this contention may be, there is
no getting away from the fact,
as stated, that the association
has actually distributed to its
members $5,915,000 in coin OF
the realm, and it seems reason
able to suppose that some OF
this money should have gone
toward the liquidation of debts.
In connection with this fea-
ture of the cooperative system,
it is only fair and pertipent to
observe that officers Of the as
ISOLATION, and others familiar
with conditions, believe that in
some instances the cooperative
system is being used as the
goat to forestall liquidation.
Delinquents, it is asserted, have,
here and there, put their money
to other uses and sought refuge
behind tie association.
c. L. Stealey, secretary OF the