Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-03-14

Objection Answered
eve hear considerable COM
plant from the country that the
association has suspended the
payment of debts. Collections
are slow and unsatisfactory with
the country merchants and
bankers, it is contended, be-
cause lots of cotton is still be-
ing held and marketed in an or
derby way by the association,
while final payments are be-
ing held back necessarily until
all of the pools have been clos
ed out.
There is some truth in such
statements, but there is also a
sight of bunk. Some people are
using the association as the goat
to excuse the noncpayment of
their debts. That accounts for
much of the talk. I have inves-
tigated the matter, and I be-.
lieve I know what I am talk
ing about.
"On1y the other day banker
from western Oklahoma was in
here to see us. He needed money
badly, he said. He claimed that
he had been unable to collect
anything because the association
was holding the cotton of many
farmers in his community.
happened to know about that
particular community. ;
CT knew that 1900 bales of as
ISOLATION cotton hda been made
there and delivered to the asso-
citation. I knew, also, that $780,
900 in cash in a. lump sum had
been advanced by the association
on this cotton, in the first in
( stance, and that subsequently
an additional $4,000 had been
forwarded farmers in the COM
munity by the association.
II confronted my western Ok
lahoma banker friend with these
facts, and asked him why he
hadn't forced a little liquidation
when all Of this money was dis
tributed in his community. I
know I would have got some Of
it if I had been a banker there
and had had money owing to
me-"
Mr.. Weitzenhoffer is one of
the few men I have met who is
willing to state openly that GER
tain selfish influences have
sought to wreck the association
in Oklahoma. Others have made
such statements, but not for
publication.
Ginner Gets Caught
He told me of a ginner-za big
one, operating a dozen or more
gins-who is now long 800 bales
of cotton, which he bought at
premium in doing his part" as
he frankly admitted, to break
down the cooperative move
ment. This ginner had paid as
much as IL cents above the
market in the hope of persuad-
ing association members to make
sales independent of their or
ganization. He still has 800
bales on hand, and of course has
loss in it. p
length of the pools is the only
one of any consequence that can
be advanced against the move
ment, and that objection will be
met satisfactorily in one way
or another.
cit isn't contended that the
system is/perfect, you under
stand. 1t has been necessary to
make changes in the federal re-
serve act, and it isn't yet perfect.
1t will be necessary to make
changes in this system, and it
may never be perfected, but it is
a sight better than the old
method.
"As to the prices received in
Oklahoma by members and non
members, frankly believe the
members will receive a substan-
tial premium. I know of in
stances where cotton has sold as
low as twelve and thirteen cents
a pound-cotton that was forced
on the market. Then on the
other hand some non-members
received the top price for their
product during the big bull
movement, On the average,
however, I am sure the advan-
tage favors the association mem
bers."
Mr.. Weitzenhoffer, while not
a member of the association, nor
an employee, is on theSinside. He
sits in with the directors at their
meetings in an advisory capac-
ity, and he has rendered inval-
liable aid in working out a fl
nancial scheme. He is, should
say, the financial Moses Of the
g movement. His bank is the
trustee for all the other banksS
in handling collateral for loans.
Knowing his familiarity with
the finances of the organization,
I asked him to tell me frankly
what the overhead expenses of
the association will be for the
first year of operation.
Expenses 81 a Bale
1.-THE expenses will not exceed
81 a bale" he said. THAT is
to say, the total expenditures
Of the association, for salaries,
compress fees. interest on money
borrowed and everything else,
will not run much over 100000,
and they will have handled 3d.
900 bales" ~
Secretary Stealey told me that
the same clerical force can next
season, handle three times as
much cotton as has been handled
this year.
"You understand" he said,
there was lots of lost motion
this season, due to the fact that
it was a brand-new thing and no.
body was very familiar with how
it should be operated. It took
us some time to perfect our ma
chinery and systematic the
work. We have had as many as
125 clerks in headquarters. To-.
day, we have about seventy-five,
and, I am proud to admit it,
they have been working for the