Universal Weekly (1914-1915)

THE UNIVERSAL WEEKLY IT Buy-a-Bale of Cotton for the South j]S usual, Carl Laemmle, president of the Universal Film Manufacturing Company, is behind a movement instituted to aid a worthy cause ; it is coming to be habitual with him. This time it is the "Buy-a-Bale" movement in Universal institutes a campaign to lessen the congestion of cotton in the hands of the tenants. Move will not only be philanthropic, but it will be good advertising as well. Buy a Bale! aid of the South, and to get as wide distribution to the helping hands as possible, Mr. Laemmle asks as many of the Universal exhibitors as read this to join in the movement. Government estimates and reports presaged cotton receipts for the season 1914-1915 to be one of the largest and the quality of the staple the best the South has ever produced. The yield is expected to approximate fifteen million bales. During the early stages of the harvest season there was every indication that the crop would bring a minimum of 12 cents per pound, or $60 per bale, making a total of $900,000,000. But conditions brought on the European war, resulting in a summary curtailment of the world's consumption of American cotton to the extent of five or six million bales, causing an abnormal surplus and complete demorilzation of the cotton market. Of a necessity there must be a large demand for a considerable portion of the 1914-15 cotton crop. This demand must be supplied at reasonable prices. In order to secure a reasonable price it is absolutely imperative that the surplus cotton be kept off the market in order that the law of supply and demand will fix the price for the remainder of the crop and insure to the South a fair price for that part of the crop which goes to market. Unless this is done the crop will lose one-third of its value, or a total of $350,000,000. The yield to the producer will be far less than the cost of production, which will spell ruin and bankruptcy throughout the South. Farming in the South is conducted by two classes — the landowner and the tenant. The landowner will lease to the tenant so many acres of land, taking in payment of the rentals so many bales of cotton. Then the tenant is compelled to go to his merchant, who agrees to furnish him supplies through the season, taking a mortgage on his cotton crop to guarantee pay ment of the account. The merchant, in turn, gets his jobber to carry his accounts until the Fall season, and the jobbers in the larger cities make arrangements with their bankers to carry them until the cotton crop is marketed. The landlord is generally a man of some means. He can usually afford to store his crop himself and wait until there is a market for the product. The tenant, on the other hand, is compelled to sell his cotton regardless of whether the price is five cents a pound or fifteen cents. It is the tenant's cotton which must be disposed of that is termed in the South "distressed cotton". And this is the cotton which the "Buy-a-Bale" is taking care of. So any cotton that is purchased through subscriptions from the North should be purchased from tenants. There are two ways in which a Northern exhibitor might purchase cotton. The most novel way would be for exhibitors to purchase the bale and have it actually shipped to them. This bale could be placed in the lobby of the theatre, and a placard attached, announcing that this was purchased to aid the South. This would be especially effective in the North and West, where the most of the people have never seen a bale of cotton. From a showman's standpoint, I would say that this is the method for the exhibitor to pursue. He will not only get "value received" in the cotton which he buys, but he will get twenty times the value of the bale in advertising and publicity. The other plan would be to have a certified warehouse receipt covering the purchase of the cotton. This receipt would state that the bale of cotton weighed so much, giving the identification number, and stating that the insurance and storage charges had been paid, and that the bale was held in a certainwarehouse. This paper at once becomes negotiable and can be handled through the banks at any time. No one who purchases a bale of cotton at ten cents a pound is "contributing" greatly to anybody nor is he taking any apperciable risk, for with cotton selling at 6V2 cents today — the lowest price it has brought in years — the purchaser can only lose 3% cents a pound. "BUY-A-BALE DEPARTMENT UNIVERSAL FILM MFG. CO., 1600 Broadway, New York. Enclosed please find check amounting to $ for which you are authorized to buy for my or our account bales of distress cotton at the rate of 10 cents per pound at point of shipment — basis, good middling. If the cotton exceeds 500 pounds per bale I, or we, agree to pay for the excess at the rate of 10 cents per pound; if the cotton weighs less than 500 pounds per bale you are to refund me, or us, the difference at the rate of 10 cents per pound. I, or we, agree to hold this cotton for a period of one year, or until the market price exceeds 10 cents per pound. Shipping instructions. (If to be warehoused please specify.) Name Address . Cut out this coupon and mail, with your cheek, to the "Buy-a-Bale" Department, Universal Film Manufacturing Company, 1600 Broadway, New York City.