Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-08-07

be lucky in speculation, but sooner or later
it would guess wrong and then would come
disaster, The success of the Georgia asso-
citation and the associations in other cotton
states is assured so long as the manage
ment of each is efficient and is steadfast in
selling gradually,
The associated state cooperative associa-
tons handled last year only one-tenth Of
the American crop. Yet in spite of the
small proportion so marketed, they eXer-
cised a strong and steady influence in sta
billzing the price. In fact, it is likely that
but foc the co-operatives and their seQues-
tration of about one million bales for
gradual selling, there would have been dis
aster in the market after the first of Janu-
airy when the demand for cotton goods
dropped acutey and mills throughout the
world curtailed their output and their de-
mand for staple.
Had these million bales also pressed for
and unpreventabe trade conditions, instead
of dull price course hanging around 81
and % cents for months, there probably
would have been sharp and serious de-
cline which would have spelled severe loss
or ruin for hundreds of thousands of indie
pendent producers.
SO far as selling price Is concerned 1t is
a somewhat unequtable fact that the CO.
operative benefits the non-member farmer
almost as much as it does the member.
Whatever influence the co-operatives have
in raising the price and steadying the mar
ket by their policy of gradual selling is
direct and undeniabe benefit even to the
farmer who refuses to join.
But as non-member farmers are under
standing the principles and workings of the
co-operatives better, they are seeing that
while they now are benefiting to a con-
siderable extent they will benefit even more
as men bers because as the co-operatives in
crease the proportion of the crop they han
die, their influence on the market will be-
come greater.
1t is mainly in the matter Of grading and
warehousing, interest and insurance rates,
that the members of the co-operatives now
have the great advantage. And these items
easily run into gain of several dollars a
bale.
The local association has file many
cases, reported by members, of their gains
in the matter of grading-gains that reach
as high as ten dollars a bale. This differ
ence comes about naturally when it is un-
derstood that association cotton is graded
by it's own agents in the interest Of the
producer, while most non-members have
their cotton graded by agents of the pur-
chaser.
gia association made a credtable showing
when all the factors are taken into con-
siderstion. Its overhead or management
expense was divided by only 70 900 bales.
The same irreducible expense would have
handled twice as much cotton. Main items
in the expense account, however, are ware
housing, insurance and interest.
The association effected warehouse saw
ing of SO cents a bale over the previous
year by concentrating it's cotton at strategic
points.
Interest charges were heavier than in the
previous year. This was due to the happy
fact that the association advanced SIS to
500 bale to members on delivery of their
cotton instead OF $50 the previous year
And although a lower insurance rate was
obtained, this expense was somewhat larger
than in the previous year, because the value
of the cotton averaged some cents a pound
or SIS bale more, and insurance rates
quantity.
When it is considered that interest and
the association was able to reduce its total
expense charge to 1.55 cents pound takes
on the aspect of genuine achievements
Analysis of the report will show that it
reflects great credit on President j. E. Con-
we'll and his associates. The Journal be-
lieves they entitled to the thanks not
only OF the members OF the Georgia Cotton
Growers Cooperative Association, but OF
the people OF Georgia.