10 PACKING AND MAEKBTING OF COTTON. 



number of bales stipulated even if a less number be produced. This 

 stipulation is intended as an incentive to production and as an insur- 

 ance for the loan. 



Under the agreement the merchant or factor furnishes the farmer 

 with supplies for his family, seed, fertilizers, and such other materials 

 as may be considered necessary within the limitation of the agreement, 

 for which the charges are usually greater than the same supplies might 

 be bought for cash. Very little money is advanced. A high rate ot 

 interest, rarely less than 8 per cent, is charged, the interest period 

 usually covering six or eight months. Charges for storage and 

 insurance begin with delivery of the cotton to the factor. When it 

 is sold an account is rendered the farmer, the debits including amount 

 of loan thereon, storage, insurance, drayage, commission, etc. The 

 weight of samples that have been pulled is, of course, so much loss 

 to the producer, and in addition to this loss deductions are made for 

 " country damage." In the final settlement the farmer is fortunate if 

 the cotton has discharged his obligations. Under this system it is 

 within the power of the factor to report the sale at a lower grade 

 than that negotiated, thus depriving the farmer of an amount vary- 

 ing from $1 to $5 per bale. Grading is complex and intricate, requir- 

 ing expert knowledge, and in all cases the farmer who can not deter- 

 mine or recognize the difference between the grades is at the mercy of 

 the merchant and factor. However, classification is necessary and 

 helpful to all parties concerned and the service performed by experts 

 employed by the New York Cotton Exchange is generally acceptable 

 to the trade. The differences and relative values in grades are 

 explained elsewhere in this report. 



COST or CONVEYANCE ^BALING METHODS. 



The cost of conveying cotton from the ginnery or point, of first 

 concentration to the compress and from the compress to cars or 

 steamship is an important factor in fixing the price of cotton to the 

 spinner. Excluding loss in weight from sampling, country damage, 

 drying out, and other causes, the cost of conveyance, ginning, and 

 recompression averages at least $5 per bale. The flat bale, 48 by 30 

 by 56 inches (fig. 1), is an irregular, bulky package, 25 of which 

 fill a 34-foot box car. When recompressed 50 bales can be packed 

 in the same car. In consequence of this reduction in the size of the 

 bale and resultant economy in space, the railroad companies carry 

 recompressed bales at a lower rate than is charged for flat bales, and 

 discrimination is likewise made by steamships in favor of recom- 



Cressed cotton. Recompression reduces the size of the bale (fig. 2). 

 ut does not materially improve its appearance or character as a 

 merchantable package. The jute covering furnished by the ginner 

 (6 or 7 yards, 44 inches wide, weighing 1| to 3 pounds per yard, 2 

 pounds being the usual weight) does not cover the flat bale. The cal- 

 culation is that recomfiression will reduce the package within the 

 dimensions of the covering. Upon reaching the compress the cover- 

 ing shows the results of sampling, the lint protruding from numerous 

 holes, and additional openings caused by the use of hooks in handling 

 are prominent, the covering being so flimsy and weak as to be unable 

 to withstand the pressure of handling. To cover these holes pieces 

 of bagging are laid on the top and bottom of the bale when it is placed 

 in the press. The work of recompression is so rapid (100 to 120 bales 



