712 



THE INDIA RUBBER WORLD 



[August 1, 1920. 



most value to tlieni as a negotiable l)apcr, and enable them to 

 borrow close to the actual value of their stored goods at cheaper 

 interest rates. Thus they market their cotton slowly and in 

 conformity with the needs of the manufacturers. The full de- 

 scription of the cotton stored required to be stated on the face 

 of the receipt will enable the owner to know the value of his 

 cotton and enable him to market it inlelligenlly. The proper de- 

 velopment of the warehouse will make possible the practice of 

 marketing the cotton crop through the warehouse, and thus avoid 

 the enormous losses resulting from weather damage. 

 nNANCING UNDER STANDARDIZED WAREHOUSING METHOD. 



It will readily be seen that important advantage will accrue 

 to the cotton trade as a whole by the formation of a large 

 operating company, independently owned and controlled, con- 

 ducting business under the provisions of the United States 

 Warehouse Act with its amendments. 



Let us go back to the Galveston dealer and his $50,000 sale 

 to the Boston cotton broker and see how it would operate under 



WtiGHiNC Cotton B\les \t Wareholse I 



the system herein described. The Boston broker could arrange 

 for the storage of his purchase in the bonded warehouse at 

 Galveston ; he might move it to port at Savannah or Charleston 

 and store it in a similar bonded warehouse ; he might move it 

 to New York, Providence, or New Bedford, and in each of 

 .these places he could lodge his cotton under the supervision of 

 Uncle Sam whose receipt would satisfy any banker in the land 

 in Boston, Minneapolis, Omaha, or Portland, Maine. Further- 

 more, if all of these warehouses were centrally owned and 

 operated in chain, one receipt and one insurance policy would 

 cover his cotton, no matter in which warehouse it was stored 

 or while in transit from one house to another. 



PROGRESS OF THE STANDARDIZED WAREHOUSE IDEA. 



Emphasized by war experiences and the difficulties and un- 

 certainties of transportation, and by the high price of cotton, 

 cotton men of both the South and North have come together 

 in an endeavor to standardize cotton warehousing and warehouse 

 receipts, by the formation of a big corporation for the purpose. 

 It is likely that some 80 or lOO "going" properties will come 

 into the combination that will cover practically the entire field 

 from Massachusetts Bay to Galveston. The National Associa- 

 tion of Cotton Manufacturers endorses it. So does the Federal 

 Reserve Board, for it sees in such a move a warehouse receipt 

 issued by a warehouseman who is not interested in the ownership 

 of the goods involved. 



The World Cotton Conference held in New Orleans last 



October, composed of cotton men from all over the world and 



from every angle of the business, unanimously endorsed the 



plan by passing suitable resolutions to that effect. 



A DISCOUNT CORPORATION TO HANDLE COTTON PAPER. 



It is evident that cotton warehousing and cotton financing 

 go hand in hand: indeed the two phases of the industry cannot 

 well be separated. In order to furnish a broad market for the 



vast volume oi cotton paper that will be created by putting into 

 practice the innovations I have described, a discount corporation 

 will be formed as an adjunct to the warehousing feature. 



Under this dual system, several notable things will be accom- 

 plished, making for both improved conditions in the cotton trade 

 and the stabilization of cotton prices. The smaller farmer will 

 be benefited by being able to carry his cotton over a period of 

 depressed prices. The grower or shipper, when storing cotton 

 in a bonded warehouse under government control, would ob- 

 tain a receipt which would be excellent collateral in case it was 

 desired to hold the cotton for a better market. Such a receipt, 

 being negotiable and guaranteeing the weight, could be con- 

 verted into cash at any time or in any place. Spot cotton could 

 be dealt in between persons entirely unknown to each other and 

 rejections would cease. The southern producer would have 

 everything to gain and nothing to lose by the proposal. The 

 spinner would likewise benefit by the guaranty, but his chief 

 gain would be the large supplies of cotton assembled at concen- 

 tration points, thus insuring him against a scarcity of raw mate- 

 rial, due to winter transportation difficulties and other obstacles. 

 Last but not least, bankers would be supplied with a large amount 

 of the most licinid and highest grade paper-acceptance on cotton. 



The next meeting of the American Chemical Society will be 

 held in Chicago, Illinois, September 7-10, when there will be a 

 meeting of the Rubber Division. 



.\t the spring meeting the question of trade names for accelera- 

 tors and compounding ingredients was discussed. It was pointed 

 out thai thiocarbanilide was offered on the market under no less 

 than six different names. There are accelerators offered which 

 Cdiisist nf a certain percentage of some common accelerator, the 

 remainder being a cheap filling ingredient. One of the most 

 notable examples of this type is a mixture of starch and alkali, 

 which is now offered for sale under a trade name at a price 

 which is out nf all proportion to its cost. Similar conditions 

 exist to a lesser degree in the market for compounding in- 

 gredients. 



The Division wishes publicly to announce its stand in the 

 matter, which is the reflection of the opinions of the members 

 present at the last meeting. As a body organized for the ad- 

 vancement of the industry, it does not object to the proper use 

 of a trade name for a product. By proper use, it says that it 

 may be more convenient for the general public to use a trade 

 name rather than a long chemical term. It includes under 

 proper use the fact that the manufacturer shall willingly inform 

 the users of his material what the constituents are which he 

 offers in his product. 



It must strenuously objects to the marlTeting of unknown 

 products which are sold under trade names and whose true con- 

 stituents are supposed to be kept secret. This objection is two- 

 fold : it feels that the advancement of the industry is retarded 

 by the use of unknown materials, and also that the public be- 

 comes the "goat" by the indiscreet use of unknown accelerators. 



In order that the members of the Division may have as full 

 information as possible, it invites statements which have to deal 

 with the subject matter presented, from manufacturers or jobbers 

 of materials which are sold under trade names. The statements 

 made concerning these products may be made publicly or to the 

 Secretary of the Rubber Division. 



The Division also invites all of its members and other rubber 

 chemists to submit results of their analyses of these materials 

 to the Secretary of the Division so that these various analyses 

 may be filed for reference of the members. 



The "Tuf" inner tube, it is claimed, will not cr.^ck, check, 

 or craze, and will offer good resistance to heat and friction be- 

 cause "made just a little better than seems necessary." (Plexus 

 Tire & Rubber Co., Tacony. Pennsylvania.) 



