The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-04-05
COOPERATIVE
MARKETING
Cotton Growers of the South
west Have Set a Precedent
That Will Bear Close
Watching by Other Pro-
ducerS
philadelphia Lcdger.)


Here in Oklahoma one encount-
crs a new farmers movement that
will be worth watching. It is the
farmer turned business man and
projecting himself as the salesman
as we'll as the producer of his!
crop. If the essay succeeds, it Will
have wide and revolutionary ef-
feet, not only on the method of
distribution Of the cotton crop, but
on tobacco. wheat, cattle and other
agricultural resources. These cotton
growers here have begun a system
of cooperative marketing ana
logous to the successful system of
the California Fruit Growers.
The movement. born in Okla
homa, has spread over the south.
Texas, Arizona and Mississippi have
sold cotton comparatively this sea-
son. North Carolina and Arkan-
sas have completed recently their
organizing campaigns. Georgia
and South Carolina are now or
ganizing to sell the 1922 crop. AL
together. eight states are co-ordi-
mating their efforts in the Ameri-
can Cotton Growers Exchange, the
National Overhead Sales Agency,
now composed of Oklahoma, Texas
Mississippi and Arizona. All par
ticipating states are organized on
the Oklahoma plan.
Wller the states now organized
and organizing are operating ac-
tually they will handle a good per-
centage Of the crops Of the states
representing so per cent. Of the
country's production. The Okla
homa Cotton Growers association
the parent project-was born of
a realization on the part of little
group of Oklahoma cotton farm
ers that the weak spot in the cot
ton farmers business lay in the
selling end They saw too great
a spread between producers and
consumers. They were taking the
other fellows price for the pro-
duet of their toll. With realiza-
ton Of these conditions came a de-
/ termination to seek a remedy. A
cooperative marketing agreement
was drawn up. This agreement
was submitted to the growers of
the state in an intensive member
ship campaign which closed on
April 9, 1921. when $4,000 growers
had signed the legally binding sew
en-year contract, under which they
were to market ali the cotton pro-
duced by them through the associa-
ton.
The state was divided into 10
districts, according to cotton pro-
duction, and a director elected by
the members in each district. An
11th member was appointed by
the president of the State Board of
Agriculture to represent the inter
ests of the genera, public on the
board. An expert cotton sales
man and an auditor were hired.
The best cotton classers to be
found We're employed.
( The first bale OF cotton was de-
livered to the association August
1S. 1921. Since that date the as
sociation has received and made
an advance payment on 100.O0U
bales. The association, non-stocK
non-profit corporation, has nc
funds. It's only asset is its title tc
cotton delivered to it by its mem
bers. On this cotton it borrowed
during the 1921 season $4,000 ,OoC
from Oklahoma banks and paid
it back as it became due. 1t also
borrowed s2,5O0,oU0 from the
War Finance Corporation. This
money was used 70 make advance
payments to the members at time
Of delivery Of their cotton. The
average approximate advance was
$50 per bale. y later payment OF
SO per bale was made in Feb
ruary on all cotton delivered to the
association. and a third payment o;
$50 per bale is Just now being
completed on three of the largest
pools. This makes a total Of $Sl
per bale received by members
having cotton in these three pools
The association has created
market. 1t has discovered Sooo
middling cotton; Very few. II any
Oklahoma farmers knew that cot
ton Of that grade was produced IN
the state. It has secured for the
grower the actual staple value oi
his cotton. 1t has .rought about ar
increase in price. Sy grading, sta
pling and establishing the actua
SpinninS value it mas Torced street
buyers to pay more nearly what the
cotton is worth. NOn-memberS a:
we'll as members have thus bene-
flied. Ii has classcd cotton into
even running lots ready for big buy
ers. The large cotton buyer car
come to the associations sample
room and buy 100, 1000 or 5000
bales OF any designated grade anc
istapie of cotton. lie can look at The
actual samples laid out before nm
He does not have to go out into the
country and buy large lots Of mix
ed grade and staple in order to gel
the 100 bales he wants. He iind'
them ready for delivery at fan
price. Consequently. buyers pay 9
premium for association cotton.
The association has eiiminateo
entirely the loss from country dam
age. All its cotton is warehousee
and fully covered trom the wealth
or. 1t is also fully insured. Iht
association has security with tht