COOPERATIVE MARKETING OF COTTON 33 
complex problem of rural organization. One association is develop- 
ing a plan to form locals that will have certain definite business 
activities, though decidedly limited. A few leaders in the movement 
are considering the possibilities in a cooperative cotton gin as a 
nucleus for a local association. Properly worked out, the ownership 
and operation of cooperative gins by local members of the marketing 
associations might result in simplifying the entire member ship 
problem. 
METHODS AND PRACTICES 
DELIVERY 
Members deliver their cotton after it has been ginned and baled 
direct to designated warehouses or compresses, to railroad com- 
panies for shipment to designated warehouses or compresses, or to 
local receiving agents employed by the association. 
The most cenerally employed of the three methods is delivery 
to a railroad company for shipment, freight collect, to a designated 
compress or warehouse. The member hauls his cotton to the freight 
station, attaches to each bale a shipping tag, and has the local freight 
agent prepare a “shipper’s order” bill of lading. There is in- 
serted in the bill of lading his contract number, the shipping-tag 
number, the gin weight, and any special notations ordered inserted 
by the associations, such as, “To be compressed in transit, carrier’s 
privilege.” The shipping tags used are furnished by the associa- 
tions to all members prior to the delivery period each season. When 
delivering directly to a near-by compress or local warehouse each 
bale is weighed and a compress or warehouse receipt is furnished, 
which describes the cotton in much the same way as a bill of 
lading. 
The member takes the bill of lading or the warehouse receipt 
to a local bank and attaches it to a sight draft on the association 
for the amount per pound or per bale previously announced by the 
association. His contract number and the weight of the cotton is 
noted on the draft, which is also signed by any hen holders or 
mortgagees. The bank pays the member or his designated creditor, 
and forwards the draft with the bill of lading or receipt attached 
directly or through its correspondent bank to the association’s custo- 
dian bank, where it is honored. 
A few associations require that all members draw drafts at time 
of delivery for the full amount of the advance. Most of them, 
however, provide for the use of member’s invoices in instances 
where growers do not desire cash advances. In such cases the 
association mails the member its note for the amount he was en- 
titled to draw. These notes are payable in some instances on de- 
mand and in some associations in 60 days or longer. They usually 
bear 6 per cent interest. Special forms of dr afts and invoices are 
supplied by the associations to all banks in their territory. 
Several associations employ local receiving agents at delivery 
points to assist members in delivering and in obtaining advances. 
The Oklahoma association adopted the plan in its second year. 
In 1924-25 it had about 400 receiving agents, who were paid 30 cents 
per bale up to 1,500 bales and 25 cents per bale thereafter, with a 
bonus at the end of the season. The North Carolina association 
had 254 in the 1924-25 season; the Georgia association about 250; 
. 
