2 BULLETIN 277, U. S. DEPARTMENT OF AGRICULTURE. 



the standards recognized by the fire insurance underwriters' associa- 

 tions. "Rates, Rules, and Forms " of the Southeastern Under- 

 writers' Association are followed in discussing these standards and 

 the insurance rates on cotton stored in such buildings. This associa- 

 tion has jurisdiction hi Virginia, North Carolina, South Carolina, 

 Georgia, Florida, and Alabama. The rates and standards used in 

 Mississippi are practically the same as those used by the Southeastern 

 Association. The standards and the rates recognized in other cot- 

 ton-producing States are very nearly the same as those outlined in 

 this publication. 



While this bulletin is intended primarily to treat of the construc- 

 tion of cotton warehouses, it seems advisable to discuss in a general 

 way the importance of storage houses and the principles of storage. 

 Thorough investigations show conclusively that the present storage 

 houses are not rendering satisfactory service. An adequate system 

 of warehouses would bring about important economic reforms in 

 the handling and marketing of cotton. For this reason it seems wise 

 to discuss these subjects before describing in detail the different types 

 of warehouses. 



IMPORTANCE OF STORAGE HOUSES. 



It has long been realized that the inauguration of an adequate 

 system of warehouses would aid greatly in marketing the cotton 

 crop. This valuable staple, with an amiual value of approximately 

 $1,000,000,000, usually is harvested and marketed in 3 or 4 months. 

 It requires 12 months for the mills of the world to consume this 

 supply. It is quite evident that if this cotton continues to be forced 

 on the market within a comparatively few months in each year, as at 

 present, the price will be depressed unduly. This not only results 

 in a material loss to the farmer, but the various branches of tlig trade 

 are taxed in the effort to handle it in such a rush. When the output 

 of any factory is in excess of the demand, the production is curtailed 

 or the excess of manufactured articles is stored in order to conserve 

 them properly until there is an increased demand. This is also 

 true in the case of some agricultural products, but unfortunately the 

 South is not prepared to conserve, even temporarily, the excess pro- 

 duction of cotton in a proper and economical manner. It is also true 

 that many of the farmers and dealers suffer a great loss because they 

 do not understand the importance of protecting and conserving cotton 

 while it is awaiting a fair market. 



This condition becomes very serious during practically every 

 cotton-picking season. The price is depressed during October, 

 November, and December, when it is being sold by the farmer. 

 The price then gradually increases, but this increase is of little 

 beneiit to the farmer, for he has disposed of his holdings. Thcro 



