24 BULLETIN 216, U. S. DEPARTMENT OF AGRICULTURE. 
equipment, and the average insurance rate on cotton stored in these 
buildings is $2.57 per $100 per annum. The second group of build- 
ings are fully standard, and have approved automatic sprinkler equip- 
ment, and the insurance rate on cotton stored in these buildings is 
only 35 cents per $100 per annum. Those without the sprinklers 
are small buildings and are not properly planned, and‘such poor busi- 
ness methods were used in their construction that they cost more than 
was necessary. On the other hand the five buildings with automatic 
sprinkier equipment were properly planned. They were erected at a 
minimum cost, with the greatest efficiency, and have a low insurance 
rate. 
SIZE OF WAREHOUSE. 
It is impossible to state definitely the best size for a public ware- 
house. These investigations show conclusively that the large, 
properly organized, advantageously located storage houses pay well, 
while the small warehouses in most cases do not pay. Other things 
being equal, it might be said that the larger the storage house the 
better. Building a large house saves much in cost of construction 
and reduces the cost of handling the cotton. On the other hand, it 
is impossible to build only large houses and have them properly 
distributed. These two points must be taken into consideration, 
and the proper size for the house will be a compromise between the 
two. Where towns are very small and shipping facilities to large 
centers are ample it might be best to have no storage house. On 
the other hand, many towns where a considerable amount of cotton 
is marketed annually will do well to have a warehouse. It is fre- 
quently the case that in very small towns two or three men each 
build storage houses. None of them can give efficient service, and 
they are forced to charge too much for storage, while at the same 
time they lose money. It would certainly seem that there is a most 
urgent need of cooperation in the small towns. 
IDEAL WAREHOUSE SYSTEM. 
It would probably be unwise to attempt to outline in detail a 
theoretically ideal warehouse system, but it does seem proper to 
indicate some essential features of such a system. It should be 
organized intelligently on a sound business basis, with the best 
financial standing and connections. Both the company and custo- 
dian should be bonded. Some provision should be made for State 
or Federal inspection. This would give the receipts of the company 
the greatest possible value, and the holder of such a receipt would 
be able to borrow money on the very best terms. Each warehouse 
should be intelligently managed. The man in charge should be well 
posted on grades and market conditions. This would enable him to 
render the most efficient service in marketing the farmers’ cotton, 
