The herald and news. (Newberry S.C.) 1903-1937, January 18, 1916, Page TWO, Image 2
THE STATE WAREHOUSE I
COMMISSIONER'S REPORT j
'
KECOMMEXDS ELECTION OF (O.tt
3fISSIO>ER BY THE PEOPLE.
M'hat the System Has Accomplished?.
Matters ot Vital importance
to the Farmers.
Special to iThe Herald and News.
Columbia, Jan. 13.?Following is a
synopsis of the annual report of the
state warehouse commissioner, Senator
Jno. L. McLauren, to the general assembly.
Gentlemen of the General Assembly:
This is the first time that an annual j
report has been made on this adven-'
ture in democracy, the state warehouse
system. Last year when the
legislature met there had not 'been
time to organize, and the report only
covered a few weeks.
J. xi-t? oujeui Ul IUC SrJ'iX.cm 113. ,
1st. To establish the character of;
the warehouse receipt as a collateral j
for loans.
2nd. To cheapen the cost of storage!
and to localize it as far as possible,
keeping the cotton where it was grown,
so as not to deprive the community of j
an asset in the shape of the money borrowed
on the receipts.
3rd. To institute a proper system of
grading cotton.
4th. To organize and maintain machinery
which will render it possible
*n Rftll.' rot.ton direct from the farm to
the manufacturer.
Last iMarch found the people of the!
South in a position where it was al- j
most impossible to borrow money on I
cotton. I went North, accompanied by I
Senator J. <A. Banks, to take up the j
matter with the federal reserve board, j
and with the large financial institu-l
iions in New York. Mr. W. P. G. Harding
of the federal reserve board gave
me letters to six of the largest banks
in New York, a copy of which I here
with submit for .your information:
(Here Senator McLaurin cites the j
letter of jMt. Harding characterizing
th.e state system as a model system,
and also the statement whicn he issued
upon his return from New York as to
what he accomplished.)
Threatened Danger to 1915 Crop.
Upon the approach of the 1915 crop,
with the blockade of ocean transportation,
and Aith a surplus from the 1914
crop added to the new crop, it was
evident that unless something were
done we would be in a worse condition
than during the previous fall. I tookj
the matter up with President Wilson
and other authorities in Washington.
The following letter from the president
explains itself:
President Expresses Pennine Interest''
The White House, Washington.
Cornish, N. H., August 7, 1915.
My Dear Mr. McLaurin.
Your letter of August fifth has been
forwarded to me here and I have read
3* cr.a?tn'na finding it verv I
suggestive indeed. I shall hope to discuss
with those who understand these
matters better than I do the feasibility
of carrying out your suggestions.
Sincerely yours,
Wood row Wilson.
Hon. John L. McLaurin, State Warehouse
Commissioner, Columbia, S. C.
President Wilson gave Mr. Harding
/ . of the federal reserve board a letter,
which was read in Birmingham, Ala.,
and which was widely published in
connection with the speech made by
Mr. Harding, (This was followed, in a
few days, by a statement from the sec- j
ertary of tSie treasury, in which it was i
announced that sufficient funds would j
he deposited in the federal reserve !
banks to insure -the holders of cotton
being able to borrow money on warehouse
receipts at a rate of 6 per cent.
As to- tlre' respect which the state
warehouse receipt enjoys, and the part
which it has played in securing this 6
per cent money for the fanners of
South Carolina and of the South, I
quote the following among the number
of fetters wmcn i nave receiver;
(Here Senator McL&urin quotes letters
of endorsement from ?ne secretary
of the treasury and the National City
bank of New York.)
The South Carolina Bankers.
There are many patriotic bankers in
South Carolina who have given hearty
encouragement and sup-port to the
:state warehouse system, and in this
connection. I desire to quote the. fol- j
lowing sentence from a letter written
to me by Mr. Ira B. Dunlap, vice president
and casfnier of the National Unionbank
of Rock Hill, which is one among
~ 1 ' J
a number that I hare received along '
this line: ,
. 7
"From the first, we have always I
thought well of state warehouse receipts,
and the more I learn in regard
to the plan, the better I like tkem. I
think so "well of the state warehouse
receipts that I would like to see all
of our warehouses in this system. I
would preffer^&tndflbg statfcv:^re3fii&?#
^receipts, witb the advantages they offer,
fe our regular warehouse receipts."
.v0.,. .In the very beginning, Mr. Joseph
Norwood of the Union National bank,
this city, came to my relief in the
matter of loans on state receipts, and
1 can not speak in too high terms of
the generous support which he has accorded.
Mr. C. G. Rowland of Sumter,
Mr. B. C. Miatchews of Newberry and
ot'ners have also shown every disposition
to give proper support..
(Character of Receipt Established.
I feel that the first step towards j
making the system a success has been j
1 - 1 ^ Avvv-wt Ko ci c !
L3.K6n DV esiauiismug vu a. mui utiojs) i
the -character of its receipt; and that!
we have succeeded, with cotton at 12 j
cents, in establishing 175 warehouses }
in the state is a sufficient assurance
of the rvalue which the farmers place
on a means to store their cotton at
home, saving the expense of freight
and high storage rates, and with a receipt
w'nich enables them to secure
money at 6 per cent?and some of
them, when borrowing large amount^,
at 5 per cent.
At the time of writing this report,
between the 25th of December and the
first of January, there are approxi^A
AAA Kolno /-vf ATI Rtnr- !
IliitLClJ uu,uuu ua.iv,o vi
age in the state system, and approxi-j
mately 75,000 bales have been handled.
In other words, the state system, during
tne first seasoA of its existence,
has handled and is handling about
$4,000,000 worth of cotton, with cottbn
fluctuating between 11 and 13 cents.
It is safe to say that nine-tenths of (
the state receipts issued upon this cot- j
j ton have been used as a collateral for;
borrowing of money, or as security in
; /
some form against liability or investment.
Up until the establishment of
the state warehouse system 6 per cent
I money was practically unknown in
South Carolina; certainly it had never
been secured by those whose labor con- j
stitutes the real wealth of the state, j
Nominal 8 per cent discount, but in i
reality 9 and 10 per cent interest, was!
the rule. A conservative estimate ofthe
saving in interest which has re- j
suited from the use of the state warehouse
receipt is 3 per cent. The state
receipts now outstanding represent securities
of some $3,000,000. The interest
on this amount of money borrowed,
on a yearly basis, before the use of the
6tate receipt,-would have totaled at
least $270,000. With the state receipt
as a collateral, this interest is reduced
to not over $180,000, a clear saving in
interest alone, in a year when the price
of cotton from the very first was not
conducive to a holding movement, of
$90,000; and this does not include the
moral effect of 6 per cent money on
other forms of collateral, and of stabilizing
the price above the cost of
yi v/u uv,uvu.
I
Redaction In Cost of Storage.
As to the expense of storage in state
warehouses, as compared with corporate
or privately owned warehouses,
I submit a letter from Senator J. A.
Banks, showing the exact figures, and
giving an indication of the enormous
amount saved to the farmers of South
Carolina by low storage rates, made
possible through the reduced insurance
selected by the state warehouse system,
and the plan adopted of keeping
the cotton in the community where it
is grown.
Grading.
The state warehouse law under
which I am operating is not the measure
that I advocated before the general
- L" 1 T !
<LSS" MQ01 y III1? ue&i piau. * v.
to call your attention to the act prepared
by Mr. E. W. Dabbs and myself,
at the request of the State Farmers'
union. I am more convinced -now than
| ever that this is a more scientific
| plan. Take the grading of cotton, for
I example. There can be j^jioubt that j
I the farmers of South Carolina lose
I thousands of dollars,each year by the
! undergrading of cotton. We have sworn
weighers; why ndt sworn graders? The
idea in this Farmers' Union bill was a
fee of 25 cents on every bale of cotton
[grown or offered for sale in Sou/i
Carolina, which would pay for weigh|
ing and grading, this fund to be used
in the development of the state warehouse
system, being entirely at the expense
of the farmers themselves. Under
this plan we could organize a system
of state insurance, in co-operation with |
the sinking fund commission, -which |
within five years would not only re- j
duce greatly the cost of insurance, but'
would show a profit of thousands of
dollars to the state itseif?not money
taken away from the people of the
' state by the state, but money kept at
home which no wgoes to enrich the
states of the North, East and West.
iTihe saving to the farmers, in one particular,
may be estimated as follows:
|> Every bale of cotton graded in South
Carolina, under the local system of
grading, is classified at least one grade
, under the standards fixed by the United
: States government, a loss ranging;
- ?. i
I from 24 to 50 points, depending upou >
the grade of cotton. Twenty-five points
loss would be a very -low average. This
los? amounts to at least $1.25 a bale. I
i Peduct from this the fee of 25 cents
i levied by the Farmers' union bill, and
J $<?r iSave a net saving* 6t one dol-1
ilar on every bale of cotton sold in
South Carolina, or an annual net in-!
' ' * .-V .. 'V
1 crease in the selling price of the crop
of between a million and a million and
a half dollars. The legislature, of
course, would have to adopt the Stan-;
dards fixed by the federal government, j
and enforce these standards in the 1
state. As it is now, if the state ware- i
house cotton were graded according to ;
the federal standards, as the act re-1
quires, its classification would be ai
grade above the general local classifi-!
cation, ,and without a law enforcing!
these standards in this state, it would !
have to be sold at one grade less than j
the state guarantees.
?This very fact, however, until the;
state enforces these standards and \
nrnviHos. fr>r a nrnnAr svRtpm nf ersd-i
~ " o i
ing, is an ample protection to the state
in its guarantee of grades. The act1
provides "that the state warehouse
commissioner shall accept as authoritative
the standards and classifications
of cotton established by the federal
government," and of course the guarantee
of the state as to the grade must
be construed in the light of this section
of the act. Therefore, in its guarantee
the state always has a margin,
under the present system of from 24 j
to 50 points, the cotton being graded
and guaranteed under the standards
we are forced to sell at'now, whlcb,
as pointed out, are a grade lower t'nan j
the real legal grades, giving the state j
the advantage of this big margin of i
at least $1.25 a bale.
' 1 earnestly recommend that you pass
an act adopting the federal standards
for the state a.t large, along the line
of the Farmers' union bill, which would
give an adequate fund for the employment
of expert graders, which is totally
lacking now, and which would
amply protect the state, and net the
cotton growers over a million dollars
a year, which is now simply taken
from them under the same method as
that employed by fhe ordinary highway
robber.
I submit for your consideration a
measure to provide for the grading of
cotton in Soutk Carolina.
Direct Sales.
In view of the war raging in Europe
and upon the seas, I. have made only,
one attempt to sell cotton direct, and
I find that this is only possible on a I
large scale. It is not an easy thing j
to invade the -established business
methods of a century; but I am satisfied
that, had it not been for the war,
I would have been able to perfect ar- j
rangements along this line. I have;
established some connections througn
which, in the future, I am confident
that it can be done. The commissions
on the sales of the cotton now on stor- [
age would reimburse the state several
times over for the whole amount which
it nas expended upon the establishment
and maintenance of the state
??3.ICliVUCTT
Insurance.
The insurance feature has entailed a |
very difficult task. Starting as we did
in the midst of the cotton season, most
of the cotton on storage in the houses
which we took over had already been
insured locally. We found solidly uniform
rates. The rate for country cotton
was $3.50 per hundred dol-lars, and .
in some instances as high as $4. This,
in our judgment, was exorbitant and
oppressive. We began a fight for lower
rates, an^the comparative statement
of rates submitted in this report show9
what has beeni accomplished along this
line. /The country rate of $3.50, with
short term cancellation, has been reto
$1.53-with pro rata cancella
tion, the pro rata cancellation in itself
being an additional saving of about
33 per cent. Other rates have been substantially
reduced, and we expect to
secure a still further reduction of 25
per cent.
At first we attempted to work
thrtfugh the regular channels, whicb
gave a reduction of 10 per cent in favor
of state controlled warehouses. We
soon found, however, that the rates
\
enforced by the great insurance trust
known as the Southeastern Underwriters
association were practically
" '? a At- - - J <r
proniDitive 01 tne auivjAu ^wi iu&
of cotton. Their enmity was incurred
by our efforts to lower the rates, and)
one of the large agencies located in
the city of Columbia, with which we
were doing business; refused 'longer to
carry the country risks or to cover
cotton in the vicinity of Sumter, which
had been parcelled out, as territory is
parcelled out under this combination,
to the Sumter part of the organization.
I desire to quote you the following
letter, a copy of which was sent me on
Saturday night, during March, 1915,
after the close of business hours.
Cotton Insurance in and Around
Sumter, S. C.
3-26-15.
Mr. A. fW. Bollin, J. H. Bollin & Sons,
Columbia, S. C.
Dear Sir: We are advised that Mr.
H. D. Barnett of Sumter S. C;, was
notified by the state warehouse commission,
under date of March 20th, to
off art t'naf his cotton had been
insured in the Colonial Fire Underwriters.
We further understand that
other parties at Sumter, or points near
there, namely, Messrs. Thomas WilcpA;
F. K. Holman> C. G. Rowland, G, X
Lemmon and L. D, Jennings, have
either been quoted rates for insurance
on .their cotton, or have been notified
that th.ir insurance has been placed in
the Colonial Fire Underwriters.
Th^re is fo:hp misunderstanding
about the insurance which it is stated
has been placed, as this office has not
issued any binders of policies io any
c f th;* parties named, nor have we
bt-en requested to do so. Under the
circumstances, therefore, we would
suggest and request that you immediately
correct tiu- impression which ivlir.
Barnett and others may have gained,
~ tho offw-r that thf-v are nrotected bv
L W liAU v J- -
this company, as such is not the case1.V3
indicated to you last week in conversation
in our office, and again over
the phone today, we are not willing to
in Sumter, or the territory around or
further say that we will not be in position
t:> assume any liability on cotton
in Sumter, or th<- territory around or
adjacent thereto.
Yours truly, j
Edwin G. Seibels, Manager. !
As a matter of fact, I did have binders
on the cotton, signed by the Seibels
agency, which was ample protection,
but in order to be on guard in the mat- j
t^r nf th^ cancellation clause, it was j
necessary for me to make other ar-!
rangements, which I did.
I desire particularly to call your at-!
tention to the last paragraph in the,
letter above quoted, which speaks for!
| its-elf in regard to the parcelling out of,
j territory by the insurance combine.!
j They do not allow one agent to go into
; another agent's territory, but give eaclij
! a complete monopoly. j
; Now that we have secured the cheap-1
j er insurance, on a pro rata cancella-;
j tion basis, they are offering to write
it at the same rate, and have done so,
in some instances; so that it may
readily be' seen how great has been
^x fa o.reifim in
! tne morai eueci oi
reducing insurance rates generally in
the state.
I had prepared a report, from my
records, giving the details of this war
which has been waged against us by
the insurance trust, but I have refrained
from embodying it here because
I do not care to do anything
to injure the various individuals employed
by these companies, and who
have to obey their mandates. A great
many of these gentlemen I know personally,
and others I know by reputation;
and for many of them I entertain
the highest respect, and I know that
they are not individually responsible
for the condition which is prevalent.
If this legislature desires to look
into this trust, composed of 82 compa
i nies, in clear violation of the federal
law and of article IX, section 18 of our
own state constitution, and of our
statutes in conformity therewith, I am
prepared to furnish them all the information
in my possession. I would
not drive these 82 companies out of
the state, but they should be made to
obey the law, and the iniquitous combine
which they have entered into
should be dissolved.
I have succeeded in securing probably"
the most advantageous insurance
arrangements in the history otj cotton
insurance. . In view of the persistent
fight against ue in this regard, backed
by unlimited millions of dollars, I have
felt that a more complete report an>u6
this line than I am making would only
result in placing in the hands of our
enemies information which they would
employ in the attempt to crush the
companies with, which we have made
our arrangements, and in this connection
I. beg to submit a statement from
the insurance commissioner, which
was published in the daily press on
the morning of December 22, and a
personal letter which I received from
him.
If the general assembly, in its wis"N
dom, should see fit to appoint a committee
to look into, this feature, I
should be glad to confer with the com---?
*?~ fWaiics with them.
miuee anu iu gu iuw UVVM4W * ,
but, in my judgment, for the reasons
stated by the insurance commissioner,
I have confined myself to a general
outline of our insurance methods,
with, the assurance that the cotton in
state warehouses is amply protected
each day, at the( market value of -the
cotton.
A Process of Evolution.
It must he remembered that any
change in the system of handling the
cotton crop which interferes with the
profits of middlemen invites a bitter
fight by those affected. It is a truism
that under existing conditions the
spinner pays the maximum price for
cotton, while the grower receives the
minimum price, the profits of the industry
being largely distributed among
the middleman, who stand upon the
highway between the grower and the
spinner. The spinner is not interested
in the middleman, but his existence is
fatal to the grower.
I ?
I have no wish, in the compass of a
report to the legislature, to detail the
trying experiences whicii this office has
met, and have confined myself entirely
to giving you such data as is necessary
to a full consideration of the subject,
and suggesting such amendments to
the law as I think advisable, after an
'" i-- --
expreience or loun^ea uuuimc,
I realized at the outset that it was
an experiment in government, and that
I could only proceed safely by no at
r f
tempting too much at once. It lias
| been a process of evolution, not only |
! tor the system, but for all those con-;
nected with its management. It has j
not passed beyond the experimental
stage, and demonstrated the practica|
bility of successful operation. I regarded
the small fund appropriated by j
rha I aonsifltiirp as anart lareeiv for i
the purpose of conducting a vitally im- j
I portant governmental experiment. At;
the end of the year 1915, its nrst year^
| of operation, i think, if you will con|
sider the figures, you will agree with
'me, that at the end of the year 1916,'
i when the cotton on storage is deliv- J
; ered, it will pay back to the state the 1
i amount expended upon it, making it j
| self-sustaining, and that it will then j
| begin to pay back a sufficient amount i
to reimburse the state for every doi-;
I lar expended upon it from its incep- j
j tion. We have been put to consider-!
| able extra expense in reducing insur- j
' aice rates, and we have not charged ;
| those getting the benefit of our blanket
| policies and pro rata cancellation anyj
thing at all for the services rendered
' A small commission from this source,
- which should be charged when the inj
suranee plans have been entirely pefected,
would go far towards supportr
ing the system.
Permanent Borne Needed.
In order to protect th-e liability of the]
state, all of the negotiable receipts
are signed manually with ink by fnej
state warehouse commissioner. The
j receipts, made out by the local man-j
agers, are sent to the office along with j
a daily report, showing the number of
, tag, weight, marks and grade of each ;
I bale. A representative of my office
| is on the. road constantly inspecting
these warehouses to see that the num
ber of bales reported corresponds with
j the number on lhand. We are careful
j as to the character of the men w'no are
! appointed managers, and take a bond
j from them to guarantee the delivery
: of the cotton and the weights and
j grades. After fourteen months' of ex|
perience, I am glad to report that we
ha>e not had the slightest trouble m
j this respect.
.. If the state is going to continue the
! system, it should have a permanent
I "home, where the records can be kept
9
j and permanently filed. iWe are located
| in the old state dispensary building,
where we hare two large vault?. It is
essential, to protect the state, and to
protect the holders of cotton in the J
| matter of insurance, that the reports
I should be kept on file where there is
J no danger of fire, and it requires a
j great deal of space to do this. Fur.1
:f -n-n ofa nvor tf\ P-S
j LLlt?I JLLlUi V, il nc ?iv 0 0 ?.
I tablish a system of direct sales, we
j must have a concentration point for
I export cotton. It must be remembered
.hat cotton is distinctly an ex-,
j port crop, and that the price of the
| cotton exported fixes the price of that
which enters into domestic consumption.
Compressed cotton, as well as
warehouse room for sorting it, is necessary.
In my last report I called attention
to the old state dispensary
property. This property was sold by
the sinking fund commission, and- only
o emo 11 rw-vrtmn nf the- Durchase money
Ia OUXUiA ?. ? 4. _
has ever been paid. I have discussed
| the subject with the parties owning
jthis property, and I know that the state
could get it back with only a small
actual expenditure of money. I sug'
gest the advisability of an act directing
the sinking fund commission to acquire
this property, provided the terms are
not extortionate.
t I
Compression of iCotton.
I am not urging, as I did last year,
the purchase of a recompress, because
I find that -there are several plants
which, could be leased or utilized at so
j much per bale. H5le scientific solution
I is compression at the gin, and I have
j been investigating a gin compress
i which can be put on the market at j
i $1,500, giving a greater density per
cubic foot than thfe recompress plants
now in use. This would settle the question
of export cotton, and I think would
add about $6 a bale to the value of
the cotton. ,
Election of Commissioner by People.
I suggest that the state warehouse
commissioner should be elected by the
people, as all other state officials are
elected.
Second. I suggest an appropriation
for current expenses in accordance
with the estimate furnished; the comptroller
general. A large portion of
this would come back to the state upon
collection of storage for cotton now
on hand, and, as pointed out above,
I am convinced that during the following
year the state can be reimbursed
for trae total amount expended
on the system from the date of its inauguration.
The Boll Weevil.
~ J ' * f A
T*ne tnreateneu inv<tsivu vi luis- i
by the boll weevil is closely related to
the state warehouse system and to the
production of cotton generally. I desire
to make a suggestion which is
certainly worth investigation. In my
ffifo&ntheonly reaJlyyej^7e..iu^T..
sitio^ was that made by Senator E.1>.
Smith to establish a zone across the
'belt in which no cotton should he
planted. It seems that the weevil is I
absolutely dependent upon cotton for j
? /
a food. It is too late now for any- ^
thing like national ; ction. The weevil
is in Florida and southwest Georgia. j
and at the prestm rate of progress |
should strike South Carolina, unless
something is done about 19IS. lis g
approach will be from the south. There V
is a line across the cotton belt north I
of which, on account of the severity
of the linters. the weevil can not J
spread. The movement north is slow. ^ 1
Georgia is fighting to keep it souih, and
we can take advantage of this. From W
Augusta to Savannah there is a natural
barrier, a poor sandy ridge on i
the Georgia side until you strike the
flats, where the swamp is from 12 to
20 miles wide. It is not a cotton coun- ^
try on our side, except about Ellenton, 1
where cotton runs in close to the river.
North of Augusta we have the mountains
of Oconee, which the weevil can
never cross. A non-cotton zone west
of the railroad from Hardeeville to i
Allendale, from there to Warrenville,
Aiken county, thence straiht through
Abbeville and across Anderson, via
Pendleton, to Walhalla, with strict
quarantine on hay, cotton seed aiKi
other products liable to carry the weevil,
would probably stay its march. for j
e-ome years, and in the meantime a
remedy may be found. This is not a
natural cotton section, and it would
pay to compensate those affected rather
than to imperil the pros.perity of the
entire state. At the present rate of
progress, our time limit is not over
two years. The weevil is now in Sumter
county, Georgia, following rapidly
the coast line, and moving slowly
north. '
Fighting thev System,
I have referred several times in this
report to the persistent fight which has
been waged against the state system^
Its business success is now grudgingly
admitted, but the fight will never
stop until the people take a hand.
Hated by politicians, scouted by selfish
interests, without adequate finances?
that it has succeeded at all demon- j
strates the soundness of its principle ^
and the need of its existence. It was |
to be expected that in protecting the
cotton grower the system would be
fought by those against whom he is
protected, and for that reason* I ha;?e
not been surprised or taken unawares j
by the relentless warfare which has
bee.i made, sometimes taking the foim |
of personal attacks upon me. T^e
world ever seeks to prevent reform, by
destroying the reformer. Thei rac*.,
3
ctalra and thp CrOSS through all tbe
ages, stand as mute signals of human
progress. On the other hand, the true- I
reformer never fights individuals; he
attacks systems. It is foolish to blame
individuals. I have no fight-on them,
except as cogs in tie wheelj They are
merely symptoms of a disease in the
body politic which only the surgeon's
knife can eradicate.
The spread of the idea into other
states has been "viewed with alarm," ,
and the corporate interests which have
fattened at the expense of those who
grow the cotton have waged a battle
throughout the South such' as could
have been waged only by combined
millions. There is a tremendous combine
in Georgia, Oklahomas, 'Mississ- ?
ippi and Alabama, seeking not only to
concentrate the cotton in ^Atlanta, but
to parcel out the territory and fix the
nrice. They are now invading the
State of South Carolina to take the .
Standard warehouse into the combine. J
Wlhen I appeared ^fore the Georgia
legislature the statement was freely
made to me that this was an effort to
head off the recognition of the storage
of cotton through state warehouses.
The success of this -corporation movement
will parcel out the cotton territory
and concentrate the money power, *j
with the federal reserve system at its fl
back, just where it Has been since 1865. V
while tne success 01 tae piau uyuu n
which South Carolina is proceeding
means the liberation of the people. I
quote the following from a recent call
issued by Philip M. Shaw of 15 William
street, New York, under date of October
1, 1915, to the shareholders of
the Standard Warehouse company of
Columbia, S. C.," for a meeting with
the avowed purpose of taking the *
Standard into the gigantic merger
Which is forming. Mr. Shaw, accord- *
ing to his statement in the call, "organized
the Atlantic States Warehouse
company in 1905- and the same year
?- ? u Mia
"was a ractor m me ronoauou ux uk j
Standard Warehouse company." 'With * /
i each copy of the call he sexit out a '
proxy in the usual form, filled in "with
the name ot a ijrcminect financier of
I the city of Columbia, -whom Mr. Shaw
says he regards "as cire of the ablest
and best informed men connected witfr
; jour company"' (the Standard Ware- 4
I house compacyj. arj 7?ho "ha^ ex- j
[ pressed himself to me (to Mr. Shaw) 1
as being convinced of the advantages dtk
! oi an alliiace "With the Atlantic fl
! State,'* etc. Among the reasons for I
[desiring to consummate the merger, K
' as set forth in this document promuigated
by Mr. Shaw, and approved, as
he says, by; a. Standard stockholder 1r. ?H
-whose bank the headquarters of tfc* ^
Standard Warehouse company la ^