36 BULLETIN 1392,°U. S. DEPARTMENT OF AGRICULTURE 
In establishing insurance rates warehouses are classed as AAA. AA, 
A, B, C, and D. The AAA elass includes a very few in which the 
risk, especially from fire loss, is reduced to a minimum; the D class 
includes a large number which provide the least protection. The 
rates may range in warehouses of the different classes from as much 
as 75 cents per month per $100 value to as low as 25 cents per year. 
In 1921-22, when the Texas association used interior A, B, C, and 
D warehouses, its insurance in storage amounted to $1. 51 per $100, 
and in 1923-24, with all cotton concentrated in an AAA warehouse, 
the cost was 16.2 cents. In 1924-25 the staple association figured its 
insurance from the time its members’ cotton was ginned until deliv- 
ery to buyers at 39 cents per $100. 
‘A good example of the savings effected from year to year by an 
association using interior warehouses is found in the:operations of 
the Georgia association. This association has reduced the number 
of warehouses each year by discontinuing the use of small local ware- 
houses with limited facilities and protection. Its storage cost per 
bale per month in 1922-23 was approximately 50.4 cents, 32.4 cents 
in 1923-24, and 23.5 cents in 1924-25. The average insurance rate per 
$i00 value per month in the same years was approximately 19.8 
cents, 11.4 cents, and 9 cents, respectively. 
The associations carry insurance on all cotton from the time it is 
delivered until ownership and possession pass to the buyers. In 
most cases coverage is effective from the time a member delivers 
cotton at the gin, from the time it takes the form of a bale, or from 
the time it leaves the gin. In a few cases it is not effective until 
actual delivery to the association. Gin policies, being carried to 
cover cotton only for the brief period between ginning and delivery, 
are as a rule effective for 10 days. With their large volume of busi- 
ness and their policy of reducing risks, the cooperatives are In a 
position to obtain from the large insurance companies the lowest 
possible rates. In making public the economies effected in insur- 
ance costs they have directed attention to the causes of high rates, 
which should force a general improvement in warehouse construc- 
tion and operation. 
SAMPLING | 
Samples are obtained from each bale on arrival at the designated 
warehouse or compress. The warehouseman, if licensed under the 
United States warehouse act, draws the samples according to regu- 
lations of the act, the s samples being obtained from both sides of the 
bale and weighing not less than 4 ounces. A sample coupon, printed 
in duplicate or triplicate and showing the number of the bale from 
which it is drawn, is wrapped in each sample. The samples are 
then packed in baskets and delivered to the classing room, if sam- 
pling and classing occur in the same city, or they are » packed i in bags 
and shipped by express to association headquarters. Figure 5 shows 
the arrival of a shipment of samples at the office of the Oklahoma 
association. 
Unless unusual conditions make resampling necessary, each bale 
is sampled once only. This practice eliminates the loss to the growers 
from the excessive sampling that usually occurs when they offer 
their cotton to several different buyers at local markets. In their 
cooperative marketing plan, the growers rather than the buyers 
receive the proceeds from the sale of samples, which amounts in the 
aggregate to a considerable sum. The so-called “ city crop,” which 
