Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-04-11
Control Vested in Trustees
Selected by Various State
Associations Ten De-
partments' Functions
BY RALPH SMITH

DALLAS, liza, ApAi w.
The American Cotton Growers
Exchange is the outgrowth of
the organization and develop
ment of the cooperative move
ment in Oklahoma, Texas and
Arizona. 1t is, in effect, a CEN
trail agency, with appropriate
personnel and machinery, for
performing the marketing and
other obligations of state as
sociations that are affiliated
with it.
The state associations of
Oklahoma, Texas and Arizona
are united in the American eX-
change. AS other cotton states
organize associations and adopt
the cooperative system of sell
ing their cotton, they will be
admitted to membership in the
exchange, the control and con-
duct of which is vested in
board of trustees selected by the
state associations-one trustee
for each 100000 bales of cotton,
or, major fraction thereof,
covered by the marketing agree
ments of the respective associa-
tons.
Public Represented
In addition to the trustees
elected by the several state asso-
Citations, the board contains
three members who represent
the interest of the public. These
members are to be nominated
by the secretary of agriculture,
the chairman of the federal
trade commission and the gov
ernor of the federal reserve
board.
The American Cotton Grow
ers' exchange is the exclusive
agent of the respective state as
sociations for the exercise of
the general grading, inspecting
and marketing powers, and
shall supervise Ill inspecting,
grading, CHASING, warehousing,
transporting and processing of
cotton delivered TO the several
state associations by their mem
bers.
Ten Departments
Besides divisions devoted to
executive, administrative and
office management, the eX-
change will consist Of the fol-
lowing ten departments: grad
ing and standardiZing; ware
housing; insurance; transporta-
ton; finance; STATISTICAL; sales
Of ordinary cotton; sales of long
staple cotton; legal; field serv-
ice.
The grading department will
have. general charge of the clas-
sification of cotton offered for
sale through the exchange.
This department will work out
appropriate standards, subject
to the laws of the land, and
supervise the grading and in
spection done within each of the
associations, so as to keep the
grading uniform for purposes
of sale.
This department will deter
mine the basis for all classified
tions and give due allowance for
any variation of a commercial
nature, hoWsoever slight, be.
tween the cotton of same gen.
eral grade produced in differ
ent districts.
Each association will main.
tain its own inspection and
grading forces. The activities
of the grading department of
the exchange will involve super
vision over grading and enforce
ment of uniform classical
ton.
The warehousing department
will advise with the associations
on the erection of local ware
houses and shall aid in stand
ardizine such warehouse, to
bring them with the best known
standards, including qualifica.
tions for license under the fed
eral warehouse act.
The warehousing department
will actively supervise and in
Itlate all activities in reference
to the use, lease, acquisition or
construction of central ware
houses or plants, or warehouses
at shipping ports or in foreign
countries.
The insurance department
will have a general advisory
supervision over all matters
referring to insurance in the
United States, in transit, or in
foreign lands. This department
Will also attend to the posi-
bllltles of insuring sales ac-
counts bonding of all employees
who handle funds, and all mat
tiers of rates involved herein.
The transportation depart
ment will have charge of all
matters in reference to railroad
and shipping accommodations,
railroad rates, rates for storage
or reconditioning in transit,
loading and unloading charges.
port charges, demurrage
charges, shipping rates and al
lied problems.