Imperial Valley press., 1922-02-06
THE TOLL PLAN FOR
MARKETING
COTTON
Effort TO Put Staple on Coop.
ey0tiue Basis Like other
Industries
Bv X. N. TURNER

tracing Parties)
The "Toll Plan" is a cooperative
method of marketing cotton, whereby
the grower or owner deals directly
with the manufacturer without the
various Intermediates of the broker.
agent and other dealers.
The contracting parties are: War
rant Export and Discount Corporation
Of Birmingham, Ala, who undertake
to deliver the cotton to the European
ports all charges prepaid, and who are
the medium through which the owner
secures a loan, the amount Of which
is governed only bv the value of the
cotton.
The Freeman-Sumner Co., of New
York, textile engineers to direct and
supervise all manufacturing processes
and sales.
The Mautner-Kuffler Co., of vi
emma, Austria, who own 100000 spin
dies, 10000 looms located in Czecho-
Slovakia, Austria, Jugo-Slavla and
Hungary who attend to all manufact-
uring, spinning, dyeing, weaving, etc,
and who take raw cotton for their
labor, instead of money.
The contracting parties receive in
full for their remuneration ten per
cent of the sales price of the goods
made from the cotton shipped.
Loans to Growers or Owners
A fixed loan value, the amount Of
which is based upon grade has been
established and the present loan value
is as follows:
On Pima cotton, grade No. and
better 18c per lb.
On Pima cotton, grade No. 3 and
better 15c per ID.
On Pima cotton, grade No. A and
better $4,000 per bale.
No lower grades Pima will be ac-
cepted.
On Short cotton, strict middling and
better, 12c per lb. will be loaned.
From the loan value is deducted the
sum of $4,000, which is used to defray
all expenses entailed in the process
of handling the cotton from the load
ing station through to Europe. Where
no loan is desired note for $2O:Ol
per bale is signed by the owner for
/ this purpose. All loans are made
through the Warrant Export & DIS
count corporation of Birmingham, Ala.
/ The methods employed are as fol-
lows:
/. Owner sends signed application
covering number of bales he expects
to ship. Satisfactory evidence, either
bv samples or certified graders GER
tificate, that it is within the grades
specified. must be furnished before
the cotton is loaded. When this is
established owner will be notified ano
the cotton may he loaded and ship
ped. =,
2. Shipments are made to X. NJ
Turner agent, care Los Angeles Muni'
cipal Cotton. Compress. San Pedro
California. On arrival the freight i!
paid, each bale is sampled, where full
s;,nples were not sent before ship
merit, and weighed by the Compress.
8. Samples are classed and graded
and a grading charge Of 40c a bale is
made and must be paid by the owner
on all bales not accepted. On ac'
cepted cotton the 40c is paid out o1
the $4,000 lien.
A. When graded the cotton is ac-
cepted irrevocably for the mills. Note
is made out for the loan due in SIN
months, which is renewable, for the
amount of the loan, which with waiver
of $4,000 bale is forwarded to the
owner for signature. Where no loar
is desired the note is for $4,000 pei
bale only.
5. On return of the note signed by
owner of a draft is made out to which
the Municipal Compress receipts are
attached. The drafts are drawn
through the Merchants National Bank
of Los Angeles. When they reach
Birmingham, Alabama, they are plac-
ed to the credit of the Merchants Ma
tional Bank, after acceptance by the
Warrant Export & Discount corpora
/ ton in the Federal Reserve Bank. A
check is then issued by Mr.. X. NJ.
Turner, Agent, and forwarded to the
grower for the amount of the loan.
Where the cotton is mortgaged it
may be sent here to the order of the
mortgagor, and instructions given to
the bank here to allow the Compress
receipts to be attached to the draft