PACKING AND MARKETING OF COTTON. 31 



housing would not only safeguard the product but would be a de- 

 cided convenience in its transportation and contribute materially to 

 reduce the present charges for insurance and handling. At none of 

 the points of concentration, including the ports for ocean shipments, 

 are adequate accommodations provided for storage, and in some 

 cases no thought seems to have been given to this important matter, 

 owing, doubtless, to the prevalent belief that exposure can not dam- 

 age cotton. At many of the points of concentration sheds of cheap 

 construction are provided which afford partial protection, but at 

 every point in the busy season (October, November, December), when 

 fully one-half of the crop is in sight, the bulk of the cotton is exposed 

 tor long periods without shelter. The illustrations accompanying 

 this report show the manner of exposure and the extent to which it 

 prevails. 



WAREHOUSING BT FARMERS. 



The Farmers' Union, an organization of producers which extends 

 over the cotton belt and whose membership aggregates many thou- 

 sands, several years ago inaugurated a warehouse system, the main 

 purpose being to secure a minimum price by withholding cotton from 

 market. This object was not realized, although the warehousing has 

 been somewhat helpful in obtaining better prices for producers. 

 The movement was given liberal support by farmers and has resulted 

 in the construction of perhaps 1,500 warehouses, all of which are 

 owned and operated by the Farmers' Union. These warehouses, 

 scattered over the cotton States, are of various sizes and construction, 

 but utterly inadequate to house even a very small fraction of the crop, 

 considered in the aggregate, although in particular localities the 

 bulk of the local product might be sheltered. This warehouse system 

 contemplated storing, insurance, grading, certifying, issuance of 

 warehouse receipt, and advancing money. Beyond securing the con- 

 struction of warehouses, the system has not met with the success an- 

 ticipated, and the officers of the Farmers' Union are now seeking for 

 plans to make it more effective and profitable. 



WEAKNESS OF THE SYSTEM. 



One of the principal obstacles to the success of the system is the 

 fact that it consists of independent units, the effectiveness and in- 

 fluence of each being necessarily restricted to its immediate locality. 

 Thus the receipt issued by the warehouse for cotton held might be 

 accepted by a local bank, but would not be acceptable beyond the 

 neighborhood of the issuing warehouse. A combination of the units 

 and the establishment of a central body, say in each State, with 

 modern buildings for storing, modern appliances for economical 

 handling of cotton, and with abundance of physical assets, would 

 materially strengthen the system and extend its influence, and with 

 the active support of producers and wise direction by their repre- 

 sentatives the system would ultimately attain a standing that would 

 insure general recognition for its certificate in many of the principal 

 centers of the cotton trade. But while such combination would ex- 

 tend the field for operations its effectiveness would be limited, as is 

 the case with every private enterprise however strong financially. 



