Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-05-08
Co operative Association
Sends Albanian to Europe
to Arrange Markets, Elm
mating Costly MiddIeman

In the person of Chessley B. How
ard the organized farmers of the
south win send an eminent cotton
merchant to Europe to perfect ar
rangements for the direct sale this
fall Of a tremendous amount of cot
ton.
Mr.. Howard goes as the sales man.
ager of the American Cotton Grow
ers' exchange. which consists of the
eleven state cooperative marketing
associations now functiOning in
Dixie.
These associations will market this
fall not less than one million bales
of cotton; perhaps it will be nearer
two million than one. Certainly it
will be a large and effective per
cent2ge of the American crop, for
the. associations in all the cotton
states are recruiting new members
every day pledged to sell their crop
only through their organization for
a period of five years.
The associations sold a consider
able amount of cotton direct to ,Eu-@
hope during the season just closing.
The amount next year will be far
greater. In fact, the export bust
ness is likely to reach such magni-
tude as to give to political econo-
mists the first naturalization, on
a large scale, Of their dream of CEN
turies-the elimination of middlemen
in a great industry.
MiddIemen Long Fought
Economists since the days OF
Adam Smith have held that middle
men-Whether necessary or unneces-
sary-produce two effects which are
abhorrent to their science: That they
lower the price of the product to the
producer and increase the price to
the consumer
The Sapiro plan under which the
eleven-state cotton cooperative
marketing associations are organ
lied is based on the theory that it
will accomplish three things:
First-Obtain fairer and therefore
more advantageous grading and
classifying of the product. The grad
ing under this plan is done by
skilled agents of the producer. I'm
der the ordinary methods of selling
cotton the grading is done by the
agents of the buyers.
Second - BY gradual selling
throughout the year obtain for the
producer an average price which is
higher than the price prevailing
during the fall months when the
bulk of the cotton is dumped on the
market and the price forced down
by weight of this selling. During
the season now drawing to a close
the average price during the fall
months was between Is and "a cents
The average price for the entire sea-
son SO far is about % cents, so that
cooperative selling has obtained
about $40 bale more than independ-
ent selling at the low price last fall
and $40 bale more than the aver
age price.
Needless Expenses
! Thirdly eliminating many diff
ferent hands through which cotton
passes on the way from gin to mill
the needless expense and the profits
going to those middlemen can be
put in large part into the pockets
Of the producers.
The associations have demon
strated already the practicability of
the first two theories. They were
not able during the current season
to test adequately the third phase.
They sold some cotton direct to
Europe but We're not in position to
do it on a lareg scale because they
were engaged in building up for
eign organization.
Mr.. Towards trip is to perfect this
organization and put it in readiness
to function at capacity next season.
He will leave with Mrs. Howard or
the Acquitania, June IL, and will
spend two months in Europe. He
will visit Liverpool, Rotterdam, Bre-
men, Havre, Barcelona, Milan, Wen
ma and probably other cotton and
textile centers. Sales agencies for
the cotton associations already have
been established in several Of those
cities. Mr.. Towards purpose is to
establish personal contact with the
European spinners, to explain the
aims and methods of the co-opera-
tive associations and to "sell' them
on the plan of direct dealing.
This fall the world will have its
first great test of the "producer-to-
consumer plan in a basic industry.
From farm to spinner will be a
, 20 o+ mot u theory