24 BULLETIN" 216, U. S. DEPARTMENT OF AGRICULTURE. 



equipment, and the average insurance rate on cotton stored in these 

 buildings is $2.57 per $100 per annum. The second group of build- 

 ings are fully standard, and have approved automatic sprinkler equip- 

 ment, and the insurance rate on cotton stored in these buildings is 

 only 35 cents per $100 per annum. Those without the sprinklers 

 are small buildings and are not properly planned, and such poor busi- 

 ness methods were used in their construction that they cost more than 

 was necessary, On the other hand the five buildings with automatic 

 sprinkler equipment were properly planned. They were erected at a 

 minimum cost, with the greatest efficiency, and have a low insurance 

 rate. 



SIZE OF WAREHOUSE. 



It is impossible to state definitely the best size for a public ware- 

 house. These investigations show conclusively that the large, 

 properly organized, advantageously located storage houses pay well, 

 while the small warehouses in most cases do not pay. Other things 

 being equal, it might be said that the larger the storage house the 

 better. Building a large house saves much in cost of construction 

 and reduces the cost of handling the cotton. On the other hand, it 

 is impossible to build only large houses and have them properly 

 distributed. These two points must be taken into consideration, 

 and the proper size for the house will be a compromise between the 

 two. Where towns are very small and shipping facilities to large 

 centers are ample it might be best to have no storage house. On 

 the other hand, many towns where a considerable amount of cotton 

 is marketed annually will do well to have a warehouse. It is fre- 

 quently the case that in very small towns two or three men each 

 build storage houses. None of them can give efficient service, and 

 they are forced to charge too much for storage, while at the same 

 time they lose money. It would certainly seem that there is a most 

 urgent need of cooperation in the small towns. 



IDEAL WAREHOUSE SYSTEM. 



It would probably be unwise to attempt to outline in detail a 

 theoretically ideal warehouse system, but it does seem proper to 

 indicate some essential features of such a system. It should be 

 organized intelligently on a sound business basis, with the best 

 financial standing and connections. Both the company and custo- 

 dian should be bonded. Some provision should be made for State 

 or Federal inspection. This would give the receipts of the company 

 the greatest possible value, and the holder of such a receipt would 

 be able to borrow money on the very best terms. Each warehouse 

 should be intelligently managed. The man in charge should be well 

 posted on grades and market conditions. This would enable him to 

 render the most efficient service in marketing the farmers' cotton, 



