Historical Newspapers of South Carolina

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COOPERATIVE MARKETI1 Today we give our readers a copy of the agreement that will be signed by all farmers who wish their cotton sold by the Cotton Growers' Cooperative Association. We would have preferred to devote our space today to. the presentation of some reasons that would show why we can get better prices through this agency; but we will put this off until we get through with the agree ment. We are making arrangements to get a speaker whom we all wish to hear, and who will meet with us at Pickens. As soon as he lays before us the plans of the association we will begin an active canvass for signers. Now we wish everyone who is asked to sign, to know what the contra.t is. For this reason we deem it best to put it in their hands now. Farmers have never before had a business proposition put up to them in a business like way. We have had social and e(lucationatl organizations; but this l: the first business orgatn i' at ienr we have ulndlertakent. \Ve hear on every haini the state ment that fattttrmer will not stick repeHtead so ofte. n that it is taken as at fact peculiar i ':a amrs. But the truth is t hit n cIa:.' *r e.' Ir people wouI stick a hit bet ter than the farmers if they went at t.heir umsler t:akinrs its a fairmter goes at his. In the. business world no work is hetun at unless ther'. is an agreement hetwee'n the parties, and both see to it that it is :a binding agreement. Both eX poet to be benelitted, and genterally are; but if something should ha ppenl so that one party became dis satisti(l, if there were no binding conttract, we wculd find Just as many out itt(rs anltng one class of our p'eo ple as in the other. A binding agree mtent is absolutely necessary if alny thing is ever to he accomplished. C. H. C. AGitfEEEiNT'r. oF. THE. SOUTH CAROIANA CO'i"'ON GRIOWERS' CO1'FtATIVE ASSOCIATION The undersigned propose to organ - ize a nonl-profit associat ion, without capitail stock, under the law; of the state of South Carolina, for the pur pose of -promoting, fostering, and en couraging the business of marketing cotton cooperatively, for reducing speculation; for stabilizing cotton markets; for (oopn('ativ'ly and collect ively handling the problems of cot ton growvers, tand for other pertinent purposes. We, the undersignedc, in considera ion ot the' premiises andI~ of our nmu tual unlderta kintgs, a nd of- the aagree mten t o)f each a nd every ot heri party hereto, do hereby lagree as follows, :ach for himself and collect ively' for the ex ptess bentefi t of, and a11Is the As ssceintionto b e otrganiz~ed: 1.Wi w ill btecomne tmembers of the Souath C artolainaa ( ottoan Growers' Co.. 5ociati on wvithboutt catt I stock to be' orgaie under a t the l aws5 of the state of Sotth Cartolina:. Only G row ers a r L andlor ds W ho h~ave C'ottona To Sell I an lie Al emb ers. 2. 'The A ssoriat ion tayt inctlude in its tmemnbershiip anay cot ton grower or the lhmdalordl or tenant or lessor lessee of land in South Carolina on wvhich c'(ttent is grownt, pr'ov'ited the landlordi ort lessor receives all or part of the renital itn cotton. Eleven Dilrectorn Office at Columbia, H. C. 3. T~he affairs of the Association shall be controlled by a board of 11I dlirectors, atnd the office of the Asso ciation shall be at Columbia. Eleven Directors All Cotton Growers --From Eleven Districts. 4. (a) The members shall elect 10 directors from among members actually residing and growing cotton in 10 distriets to be specified by the Organization Coinmi ttee before May, 1922, so as to include in each district approximately one-tenth of the cotton coveredl by the signers, without divid ing counties. One Named By Governor (b) One director shall be a person nominated in writing by the Governor of South Carolina, and wvhen elected shall have full authority as a director, representing primarily the interests of the general public in the conduct of the Association. Members Will Elet Directora. 5. The members of each district shall meet annually for a primary, election, to be held in the district an~d conducted as, where, and when speci fied by the directors, and shall select one name in each district to be pre - ented as the nominee' to represent COTTON% IG AGREEMENT each district. Such nominees shall be elected as directors at tthe general meeting. (a) Such nominee shall receive a majority of the votes east and if no one receives a majority there shall be a second primary, in which all but the two receiving the highest vote shall be dropped. If unable to attend, the members may vote at such primary meeting by mail, or a signed ballot prepared un der direction of the Board of Directors The primaries to select di:ectors shall be held in January of each year, as the Directors shall direct. Directors Always To Give Fair Rep. resentation. 6. The directors, by a majority vote, at least 20 days prior to the primary meetings, each year thereafter, shall change the said districts and tne coun ties included therein, so as to main tain at all 'times fair and equitable representation of the cotton-producing counties and districts included in the membership. Board Will Have An Executive Con mittee and Bonded Officials. 7. (a) The board shall appoint an Executive Committee of five directors to conduct the affairs of the Associa tion, subjcct to the general control of the Board of Directors. (b) All officers and employees of the Association who handle funds shal be adhquately bonded. Local Branches Will Be Maintained. 8. Informal local branches of the As sociation shall be created and main tained in every distriet and .central locality. Each branch shall have its own offices, who may attend the meetings of the Board of Directors and act in an advisory capacity. One Man-One Vote 9. Every member of the Association shall have one vote. Entrance Fee $5 Paid Once For All. 10. Every member shall pay an en trance or membership fee of $5 in con sideration of the agreement of such Association to aid w'tively in the or ganization of the South Carolina Cot ton Growers' Cooperative Association. Will Sell For Members Only-Suita ble By-Laws. It. The Association shall confine it self to the problems of marketing of cotton and cotton products only, and for its mecymbers only. It shall have suitable articles of incorporation and, by.-laws stating the purposes and1( pow ers of the Association; the rights and duimtics of members; manner of forfei ture of membership; value of property interest on withdrawval or. explusion fromi membership, and any other nec essary, pert inen't antd im portant points of organization, as8 determined by the Organization Committee. Execntire (Conmmittee. 12. Thec A ssociation shall be organ zxed by ain Organization Committee 0 nsist ing of a Cha irman, three V ice r'hairmenn, a Secretary and a Treasur 1r and~ twenty add~itional members, andl the said Organization Committee may increase its members, elect new members in place of any wyho may resign or be unable to act; and take such steps as it may dIeem advisable to secure subscribers for this agree ment and members of the Associa tion. 13. (a) If by May 1, 1922, signa tures of cotton growvers or persons el igiable to miembersh ip covering at least 400,000 bales of cotton as of the 1920 crop shall not have been secured forj this agreement, the Organization Committee shall so notify every sub scriber at his add~ress noted below, prior to June 15, 1922; and the sub scriber shall have the right to with dlrawv and to cancel his signature and the agreement signed by him,.by wvrit ten notice mailed to the Secretary of the Organization Committee between June 15 anid July 1, 1922. (b) If all signatures are not then withdrawn, the Organization Commit tee may proceed with the organization and with the marketing plans under the marketing agreement, provided signatures covering at least 200,000 bales remain uncancelled. If signatures covering less than 200,00 bales so remain, the committee .shall cancel all contracts. ,(c) If signatures of the growvers of 400,000 bales shall be secured by the said date, May 1, 1922, this agreement shall be binding upon all of the sub scribers in all of its terms and there shall be no right of withdrawl whatso ever. (b) Fo? all matters of production or signatures and for all statements of fact in connection herewith. the written statement of the Organization al Committee, signed by its chairman, A shall be absolutely conclusive, with or si without notice to the subscriber. T Committee Keeps True Accounts 14. (a) The Organization Committee A shall keep a full, true, and detailed 01 account of expenditures, including ti salaries, fees, and cost of every kind l and shall render a written report f4 thereof of the Board of Directors of it the Association when organized; and tl shall thereupon turn over to the As- u sociation any balance-remaining in its G hands and free of obligation. (b) The treasurer of the committee shall be bonded. (c) If the signatures of growers e covering the said 400,00- bales shall -, not have been obtained by May 1, h 1922; or, if for any reason, the Asso cietion is not legally organized by October -1, 1922, the funds then re maining in the hands of the Organiza tion Committee shall be returned, to and pro-rated among the subscribers; and the Organization Committee shall t have its-accounts audited by a certified t public accountant. and the report s thereof shall be filed with the Secre- C tary of the Organization Committee e and shall be available for inspection C and examination by any of the sub- c scribers or their representatives. t (d) If the committee organizes with t the growers of less than 400,000 bales, s but more than 200,000 males, the corn mittee will return to the subscribers withdrawing their signatures their pro-rated shares of the funds on hand and free of obligation on May 1, 1922. Committce Authorized Tro Go Aheaid. 15. (a) We do hereby authorize tthe Organization Committee as the repre sentative of all the subscribers, to take such steps as it may deem proper to secure subscribers hereto; and when the adequate number is secured to hold primary elections and have the signers select organizing directors from among growers subscribing hereto, togethqr with the public di rector, conforming as closely as possi ble to the provisions of paragraph 4; and to take all steps necessary and advisable to organize the Association. V Will Not Stop With 400,000 Bales, But A Keep On. (b) The Association when organized shall make every reasonable effort to 1 secure signatures of additional grow- v ers to the Standard Marketing Agree- fi ment, to cover the largest possible ti percentage of the cotton crop of this n state. sl How Warehouse Companies, Etc., May a le Promoted. si 16. (a) After due investigation the CE Association may cause a warehousing A corporation to be organized in any community or district where any such A need is indlicatedl, by written request of at least 10 members, for the pur pose of leasing, purchasing, or con- m structing andi operating warehouse or t other plants to handle, test, process, at warehouse or store any or all of the TI :otton delivered by members of the to Association or others, wvhich wvare- Icl mouses shall be under the State Ware- " iouse System wvherever possible. sh a[arketing Agreement Is Here Accept- Co ed. The marketing agreement is here iceep)ted in terms substantially the name as those set forth in the agree wvrewith embodied; or (2) at the op- t ion of the Board of Directors, the mblscriber agrees to be0 bound by the terms of the followving marketing rigreement.ths For such purpose signatures tothse Association contract shall be deemed.c to all effets the same as signature al to this said marketing agreement and a and as accepted of each and every. c provision thereof and herein, as of a m the (late of the exercise of such op-'c tion by the Board of Directors. Notice c< thereof shall be mailed to each sub-~ tl scriber at his address as noted below. a Trhis Is An Application For Member- d ship. cI (b) The subscriber here applies for ni membership in the Association when y organized and expressly agrees that p his signature to the Association con- p tract and to the marketing agreement, T herewith embodied, and to this appli- di cation for membership shall be irrev- G ocable, except as provided in para- 01 graph 13; and that he so agrees, in order to induce other growers to sign ~ this agreement for his benefit as well as their own general benefit and the public welfare. Acceptance of this application for s< membership and of the marketing s< agreement shall be deemed conclusive, Si upon the mailing of the notice by the 01 Association; and such mailing and no- ai tice shall be conclusively established a< by the affidavit of the Secretary of a' the Association. . t South Carolina Cotton Growers' Co. uri operative Association Marketing ar Agreement.-p The South Carolina Cotton Growers' F'o Cooperative Association, a non profit Columbia, hereinafter called the e asociation, first party, and the under- e gited,. Grower, party, agtee: his Is For Cooperative Marketing. 1. The Grower is a member of the ssociation and is helping to carry it the express aims of the Associa on for cooperative marketing, for ininiizing speculation and waste and W stabilizing cotton markets in the iterest of the grower and the public, trough this and sinilar organizations ndertaken by other growers. rowers Sells Cotton To Association For Five Years. 2. The Association agrees to buy nd the Grower agrees to sell and eliver to the Association all of the tton produced or acquired by or for im in South Cai'olina during the ears 1922, 1923, 1924, 1925 and 1326. f You Already Have A Crop Mort gage, That Cotton Does Not Have To go To The Association. . 3. The Grower expressly warrants hat he has not heretofore contracted o sell, market or deliver any of his aid cotton to any person, firm, or orporation,, except as noted at the nd of this agreement. Any cotton overed by such existing contracts or rop .mortgage shall be excluded from he terms hereof for the period and o the extent noted, if the lienholder o enforc.es his right of possession. he Association t'ells You Where To Deliver. 4. (a) All cotton shall be delivered t the earliest reasonable time after icking and ginning, to the order of he Association, at the warehouse con rolled by the Association, or at the earest public warehouse, if the Asso iation controls no warehouse in that mmediate district; or by. shipment as irected, to the Association and by elivery of the endorsed warehouse eceipts or bills of lading properly irected. (b) Any deduction or allowance or )ss that the Association may make r suffer on account of inferior grade, uality, or condition at delivery, shall e charged against the Grower idi idually. ssociation Will Try To Standardize Methods. (c) The Association shall make Liles and regulations and shall pro- 1 ide inspectors or graders or classi ers to standardize, grade and class t 2e quality of a"r the method and tanner of handling, pressing and ipping such cotton; and the Grower 1 grees to observe and perform any teli rules and regulations and to ac tpt the grading established .by the ate and federal authorities and the " ssociation. r is Cotton Will He Pooled For Each e Year By Grade And Staple. 0 5. The Association shall pool or ingle the cotton of the Grower with t c cotton of a like variety, grade, d staple delivered by other growers. te Association shall classify the cot n andl its classification shall be con- c asive. Each pool shall be for a fullC atson. The Executive Committee C all have the right to exclude any ton not grown,an land owned or itrolled by a member.n sociation Will Resell All Cotton d id Pay Net Proceeds To Grower sts Of Operation And Overhead ill Be Deducted, Butt The Associa-c mn Forbidden To Make Any Profit -For Itself. 6. The Association agrees to resell chi cotton, together wvith cotton of te variety, gradle, and staple, deliv ed by other growers under simliar ntracts, at the best, price obtain >le by it under market conditions,t id to pay over the net amount re ived therefrom (less freight, insur ice, and interest,) as payment in full. p the Grower and Growers named in mntracts similar ,hereto, according to to cotton (delivered by each of them, ~ fler dleducting therefrom, within the ~ iscretion of the Association, the >sts of maintaining the Association, o nd costs of handling, gradling andc arketing such cotton; and~ of reser es for credits and other general pur' ases (said reserves not to e.xceedl 2 er cent of the gross resale price.) c he annual surplus from such de iction must be prorated among the rowers delivering cotton in that year. rt the basis of deliveries.l very Grower GetR Sante A mount C or or Same Quality Atnd Quantity Of A Cotton. 7. The Grower agrees that the As. at iciation may handle, in its discretion, Pr >me of the cotton in one wvay and to mo in another; but the net proceeds all cotton of like (luality, grade, id staple, less charges, (osts, anid lvances,; shall -he divided ratably nong the Growers in proportion to 4 their deliveries to each poolay cot ents to be made from time tot' re itil all the accounts of each pool Ase C settled.As ie ('otton Will Be Sold Anywhere- kr r Export Or Otherwise Where It e~ Will Bring Most. brt &.Th 'rssoit aysl h but aid cotton, within or without this I tate, directly to spinners or export rs, or otherwise, at such times and ipon such conditions and terms as it I nay deem profitable, fair, and advan.. ;ageous to the Growers; and it may cell all or any part of the cotton to >r through any agency, now establish d or to be hereafter established, for he cooperative marketing of the otton of Growers in other states :hroughout the United States, under t much conditions as will serve the joint ntcrests of the Growers and the pub- c ic; and any proportionate expense t onriected therewith shall be deemed I marketing costs under paragraph 6. k 'he Association Can Raise Money To Make First Payment To Growers. 9. The Grower agrees that the As- t sociaticn may borrow money in its e name on the cotton, through drafts, acceptances, notes or otherwise, or on any ware house receipt or bills of lading or upon any accounts for the sale of cotton or on any commercial paper delivered therefor. The Asso nation shall prorate the money so received among the growers equitably as it may determine, for each district !nl period of delivery. Will Heclp Finance Growers. 1 The Association agrees to accept lrafts drawn against it by the Grower or any amount specified and deter nined by it, upon delivery of cotton )ereunlcr, and to assist the Grower . d irecunt such drafts, secured by he warchcuse receipts, through the nut ad(vantageous banking system. D)lis.; Or Plants Whcrever They Are Necded. 10. The Association may establish selling otlices, warehouses, plants, narketing, statis;tical, or ether agen -ics in any place. You Can St.p Growing Cotten If You Wirsh. 11. The grower shall have the right o stop growing cotton and to grow nything else at any time at his free liscretion; but if he produces any otton during the term hereof, it shall ll be included under the terms of his agreement and must be sold only o the Association. k'ou Do Not Have To Deliver Any Particular Quantity. 12. Nothing in this agreement shall e interpreted as compelling the arower to deliver any specified quani y of cotton per year; but he shall leliver all of the cotton produced or equired by or for hin as landlord or essor. It Is A Binding Agreement. 13. (a) This agreemennt shall be inding upon the Grower as long as e produces cotton directly or indi etly, or has the legal right to exer se control of any commercial cotton r any interest therein during the ~rm of this contract. (b) If this agreement is signed by se members of a copartnership it 2a11 apply to thenm and each of them idividually in the event of the dis )lution or determination of fhe said >partnership. rower May Make A Crop Mortgage And Association Will Help Him. (c) If the Growver places a crop iortgage upon any part of his crop uring the term hereof, the Associia ion shall have the right to take de very of his cotton and~ to pay oft all r part of the crop mortgage fo the ccount of the Grower andl to charge ie same against him individually. Statistics Are Needed. 14. From time to time the Growver grees .to mail to the Assoeciation any tatisticail dlata requested, on the orms Provided for that purpose by he Association. ' All Contracts Are Alike. 15i. This agree.ment is one oif a ories generally3 simiilar in terms, S omiprising withI all such agreements, Ignedl by inadividualI Growers, or therwise, one single contract be veen the Associationi and the said rowers, mutually andl individlually 6 ligatedl under all of the terms there.-$ -The Association shall be deemed et >) beoating in its owvn name, for all d1 ich Growers, in any action or legal R roceedings on or arising out of this 01 mntract. tI Associationi Authorized TPo Act. 16. (a) The Grower hereby express- A authorizes the Association to deliv to any warehousing corporation ganizAed for cooperating with this -- aociation, any or all of his cotton r handling, processing or s'toring, dI to charge against .his cotton the orated Costs of such services and * pay the interest on advances. . sociation May Sell Cotton Of 1021 Or 1920 Crops. 7. If the Grower has on hand upon ianization of the Association any ton of the 1921 or previous crops, e of lions and capable of delivery, may deliver such cotton to the sociation as It may. direct, to be ded by the Association and mar e~d by It in pools wholly separate si all other deliveries heres made generally in the manner herein- 53 3estfrh to Not Break The Contreet-This Is Expensive. .18. (a) Inasmuch as the remedy at. aw would be inadequat nuch as it is now and * mpracticable and extr' ' o determine the attu 'a ulting to the Associat, T rower fail so to sell . ii d f his cotton, the G. -a grees to pay to the Association J.e Il cotton delivered, sold, consigned, vithheld or marketed by or for him, ther than in accordance with the. erms hereof, the sum of 5 cents a ound, as liquidated damages for reach . of his contract, all parties greeing that this contract is one of series dependent for its true value pon the adherence of each and all of he growers to each and all of the said ontracts. low Traitor Members Will be Dealt With. (b) The Grower agrees that in the vent of a breach or threatenned >reach by him of any provision re ar(ling delivery of cotton, the Asso. iation shall be entitled to an injunc. ,ion to prevent breach or further )reach hereof, and to a decree for ;pecific performance hereof; and the arties agree that this is a contract 'or the purchase and sale of personal )rcperty under special circumstances mdxi conditions and that the buyer can. tot go to the open market and buy sottcn to replace any which the Grow ,r may fil to deliver. Violato~rs Pay The CO., 'Then. (c) If the Associat action w hatsoeveir, bJ >rcach or threatened ;he Grower agrees to ;ociation all costs of court, cost of )onds and otherwise, expenses of ,ravel and all expenses arising out of )r caused by the litigation and any easonable attorneys' fees expended or ineurred by it in such proceedings; and all such costs and expenses shall b'e included in the judgement and shall be entitled to the benefit of any lien securing any payment thereunder. South Carolina Association May Co )perate With Cotton Growers In Other States. 19. The Association is expressly authorized to exercise any or all of the grading, inspecting marketing, or other, powers or rights granted here under through any central agency to be organized for coordinating the ac tivities of this and similar cooperative narketing associations in other states Any costs of maintaining such cen tral agency shall be prorated among the said associations on the basis of the gross sale proceeds from the pro. lucts delivered' by thenf respectively md shall be considered part of the osts and deductions provided for in >aragraph 6. -The Association - ~orming such centr as three similar as anized in the Uni Read, considered,. Grower, as of the d. Lhe Association cor af South Carolina. Minor Changes May Be Made. 20. These provisions are subject to ininor modifientions or amendment by the organization Committee, on the muggestion of state officials or other wise, so as to carry out the general )lrpos0e hereof. Al- Contracts A re Thie Same- There Are Nro Favorites. 21. It is expressly agrceed that this. nstrumecnt is one of a series suibstan .illy indentical in terms. All such ostruments shall be deemed one con ra~ct for the purpose of binding the ubscr'ibers, to the same extent as if II of the subscribers had signed only nie such contract. Read, considlered andl signed at.... outh Camolina, this...day of -, 192.. Do Not Sign Without Reading. Growver..... ---....--.... P. 0. Address --.... moduction in 1920 was---..--bales Receipt below to be signed by orga er on both original and duplica pies of this agreemennt and t - iplicate copy given to the memnbei eceived from -......... ... .... County---........192... eo sum of five dollars paid to the moral membei-ship fund of the South arolina Cotton Growers Cooperative Bsociation. Signature of Organizer. ---w w- ----U w W W UWW w U U nio tax niow LUDEN'S men~thol1 cough drops 3 V sfttErRLtE