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A H I S T O R Y
O F C O T T O N C U L T U R E A L O
N G T H E M I D D L E B R A Z O S
R I V E R |
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By Manford Eugene Jones
1939 University Of New Mexico
Master's Thesis
Texas A&M University History Professor Dale Baum purchased a
copy of this thesis from the university's library and contributed it to this
site. It is used
with permission of Manford Allen Jones,
son of the author Manford Eugene Jones.
These
electronic pages may not be reproduced
in any format by other organizations or
individuals. Persons or organizations desiring to use this material
must obtain the written consent of Manford Allen Jones or contact William Kent Brunette,
Robertson County TXGenWeb coordinator.
CHAPTER V:
PROBLEMS OF COTTON MARKETING
There is plenty of romance
connected with the marketing of cotton along the Brazos. It is the
story of a continual struggle between the seller and buyer, with the
seller fighting for his right to get a fair price for, and good grading
of, his cotton.[25]
The first planters freighted their
cotton to Houston and Galveston and sold it to cotton factors. These
factors extended credit to the planters through local stores, and the
cotton producer did not know what price he would get until the cotton was
delivered at the seaport. Under this system, the farmer paid heavily
for transportation and interest, and the factor took a far profit on the
actual price paid.
The Grange or Granger movement came
to the Bottom in the 1870s. In each town, cooperatively owned stores
were set up to furnish the farm groceries and to pay him a fair price for
his cotton. A few of these stores were in business until 1900, but
disappeared soon thereafter.
In the meantime, or rather after
the railroads came to the Bottom towns, local merchants also furnished
farmers with credit to make their crop, and then bought their cotton in
the fall. These merchants took a heavy profit. At the same
time, local independent buyers began operating during the selling season.
This latter group included several Jews who came to Calvert and Hearne.
The second attempt at cooperation
was the Farmers Alliance:
"It was only a few years after the
decline of the Grange that the Farmers Alliance movement became
widespread. Membership in this order was strong in the Southern
states, and the organization definitely committed itself to the
cooperative marketing of farm products, with particular attention being
paid to cotton. A number of local organizations were set up, and
plans were made to sell direct to mills. The plans were finally
unsuccessful, however, principally because the widespread crop mortgage
system prohibited the marketing of cotton through these organizations.
The Alliance made attempts to finance the growers, but lacked the
necessary resources."
"The Farmers Alliance from the
beginning engaged in politics, and, as it became larger, it political
activities increased. In the election of 1892, it fortunes became
involved with those of the Populist party, and, with its defeat, the
Alliance became less and less an influence."[26]
The Farmers Alliance came to the
towns of the Central Brazos region in the 1890s. A large warehouse
was built in each town, in which to store cotton belonging to members of
the Alliance. The Cotton was sold in large groups and sometimes held
for an advance in price.
The third attempt at cooperation is
explained in the following quotation:
"The next significant contribution
to the foundation of cooperative marketing in the South was perhaps made
by the Farmers' Union, to to give it its full title, the Farmers'
Educational and Cooperative Union of America. This movement
originated in Texas, in 1902, and grew rapidly. Of all the
organizations which attained prominence up to 1920, this was the most
distinctly Southern, and its efforts were devoted principally to the
problems of the cotton farmer."
During the first years of the
Farmers' Union, attention was focused mainly upon the marketing of cotton.
The activities of the Union along these lines were closely allied with the
program of the Southern Cotton Association, which had been organized in
new Orleans in 1905 under the leadership of Colonel Harvie Jordan, a
Georgia planter. The conviction had become widely prevalent that the
cotton futures markets, instead of functioning as exchange agencies, were
being manipulated to the advantage of the gambler, and at a severe loss to
the farmer. The Union advocated a minimum price, and advised the
farmer to hold his cotton until he could sell at that level. In
1906, the farmers were told to hold their cotton for at least eleven
cents, basis middling. As the Union predicted, the price reached and
passed that level, rising from nine and a quarter cents at New Orleans in
September to eleven cents in October."
While the efforts of none of the
earlier organizations of farmers in the South could be called successful,
and while none fulfilled the sometimes extravagant promises made for them,
in the light of present day evaluation, each contributed something to the
eventual success of cooperative marketing."
Perhaps the most valuable result of
these early experiences was the demonstration to Southern farmers of the
ideals and practicability of cooperative endeavor. This did much to
pave the way for the successful cooperative organizations of today."[27]
When the Farmers' Union was
organized in Hearne, Calvert, Marlin, and Waco, the name Farmers Alliance
on the warehouses was changed to Farmers Union. The Farmers Union
lost out for the same reason that the Alliance did, because it engaged too
much in politics.
At the present time in Waco and
Marlin, the Bottom farmers are served by the Texas Cotton Cooperative
Association, a branch of the American Cotton Cooperative Association, New
Orleans, Louisiana. The "Texas Co-op", as this organization is
called, attempts to give its members the benefit of buyers skilled in the
art of grading cotton and also the benefit of a slightly higher price
through mass sales of cotton.
The various cotton cooperative
associations perform many services for the farmer that private buyers do
no or cannot do. These services are expert classing of cotton,
cheaper freight rates, and a better price. In some instances, the
independent buyer has been able to beat the price paid by the cooperative
because of the cost of these services. In general, however, the
cooperatives are reducing the cost of their services each year through
more efficient management, and the farmer thus benefits in the long run by
joining the cooperative society.
The latest cooperative cotton
association in the central Brazos region is the Brazos Valley Cooperative
Association. It was organized in September, 1933, at Bryan, Texas;
and the territory served consists of the following counties: Robertson
Brazos, Grimes, Washington, and Burleson.
J. R. McCrary of Calvert, Texas,
was the first president; the board of directors is made up of seven men
including the president. This is the only cotton cooperative
association formed whose directors serve without pay.
The reasons for this organization
being formed were that the Bottom farmers believed they should be getting
a higher price than the Texas Cotton Cooperative Association could give,
since their staple is longer than the average for other sections of the
state, and that some though a smaller organization could serve its members
better.
This organization has established a
fair minimum price based on world markets. Therefore, since the
staple of Bottom cotton is better than the prairie cotton, the Bottom
farmer secures a better price. The following is a copy of the
marketing agreement entered into between the cotton grower and the Brazos
Valley Cotton Cooperative Association:
"Marketing Agreement Of The Brazos
Valley Cotton Cooperative Association"
"The Brazos Valley Cotton
Cooperative Association, a non-profit co-operative marketing association
with its principal office at Bryan, Brazos County, Texas, hereinafter
called 'Association', and the undersigned, hereinafter called 'Grower',
AGREE: -- "
"(1) If not a member, the Grower
hereby applies for and is admitted to membership in said Association, and
will carry out the express aims of the Association."
"(2) The Association buys and the
Grower sells and agrees to deliver to it, one (1) bale of cotton from and
after the date of this contract; subject only to the right of either party
to terminate this contract as hereinafter provided. The Grower, at
his discretion, may deliver more than one (1) bale of his cotton in any
one year. Either party hereto may terminate this contract by
notifying the other party in writing between March 1st and 15th of any
year; provided, however, such termination privileges shall not be
effective until the Grower has delivered the cotton covered herby for one
crop year, nor so long as the Grower is indebted to the Association, or
its subsidiary corporations."
"(3) The Association agrees to
resell such cotton of the Grower together with the cotton delivered to it
by other Growers under similar contracts, at the best price obtainable by
it under marketing conditions; and to pay over the net amount received
therefrom (less freight, insurance, storage, and interest as payment from
the Grower; after also deducting therefrom, within the discretion of the
Association, the cost of maintaining and operating such Association and
the cost of handling, grading, and marketing such cotton, together with
the cotton of other members, and a Reserve for credit and other general
purposes, said Reserve not to exceed one (1%) percent of the gross resale
price of such cotton; said 1% Reserve shall be the property of the Grower
to be refunded to him at the discretion of the Board of Directors of the
Association, according to the book value thereof as conclusively appraised
by the Board of Directors of the Association; I also hereby assign
and transfer to the Association, with power at its discretion, to collect
any and all Reserves and property interests due and owing me by the Texas
Cotton Cooperative Association, of Dallas, Texas, arising out of
deductions from cotton delivered to it by me as a member; and when
collected that the same shall be set up on the books of said Association
to my credit and to become a part of my Reserves in said Association and
to be refunded to me as provided in my marketing agreement of Texas Cotton
Cooperative Association."
"(4) The Board of Directors
of the Association may, in its conclusive discretion, create and establish
pools through which the cotton of the Grower and that of other members may
be handled and sold; and may promulgate and establish from time to time
rules and regulations pertaining to the operation of such pool or pools,
and the Grower agrees to be bound thereby and to accept the proceeds
realized from the sale of his cotton through such pools, or otherwise, in
accordance therewith."
"(5) The Grower agrees that
the Association may handle and/or sell, in its discretion, some of the
cotton in one way and some in another, as to it might seem most beneficial
to the Grower and the other members of the Association, collectively, and
the Grower agrees to cooperate with it in such transactions."
"(6)The parties hereto agree that
this is a contract of purchase and sale of personal property and shall be
binding upon them as long as the Grower produces cotton, either directly
or indirectly in accordance with this contract; and that the Association
may, in its conclusive discretion, promulgate and establish from time to
time, rules and regulations governing the grading and classing, sale,
delivery, handling, storing, transporting, borrowing money on such cotton
to make advances, or otherwise, and for the full and complete operation of
said Association as provided in it charter and By-Laws and all amendments
thereto, and the Grower agrees to abide by and perform the same, and to be
bound thereby; provided, however, such rules and regulations shall be
evidenced by a resolution passed, by the Board of Directors of such
Association and entered on the Minutes of its meeting."
"(7) In the event the Grower
shall place a crop mortgage upon his cotton during the term hereof, (of
which he shall notify said Association), and any money is advanced or paid
to the Grower at the time of the sale and delivery of his cotton to said
Association, that the same shall first be applied to the payment of said
indebtedness, and the Grower hereby agrees to indemnify said Association,
against any damage or loss by reason thereof, which shall be due and
payable at Bryan, Texas; failure of the Grower to comply with this
mortgage requirement shall constitute a breach of this contract."
"(8) LOCAL ASSOCIATIONS.
It is understood and agreed by and between the Association and the Grower
that the Association, in co-operation with the Central Sales Agency, with
which the Association is affiliated, shall have the power and it shall be
their duty, as soon as is practicable, to set up and establish in the
territory comprising the Association's operations and members, local
associations, with appropriate Articles of Incorporation and By-Laws, and
other necessary and proper application and contracts in connection
therewith, for the benefit of the Grower and other members of the
Association; and when such Local Association has been so organized and
incorporated, the Grower hereby applies for membership therein and, if
accepted, agrees: (a) To execute, when requested by said Local
Association, a Marketing Contract, in terms substantially the same as
those set forth in this Marketing Contract; or (b) At the option of the
Board of Directors of such Local Association, by a resolution duly entered
on the Minutes of the meeting, to be bound by the terms of this Marketing
Agreement; and the acceptance of said Board of Directors of this contract
shall become effective immediately upon notice thereof mailed to the
Grower hereof at his address as noted below, and such notice shall be
conclusively presumed to have been accepted upon mailing thereof, which
shall be evidenced by an affidavit of the Secretary of such Local
Association."
"(9) The Board of Directors
of the Association and/or the said Central Sales Agency shall have power
to organize and/or recognize Local Associations and it shall be their duty
to equitably-apportion the duties and activities of the Association and
the respective Local Association; and, where such Local Association have
been so recognized, the per bale charge shall be limited to the charge
made by the Local Association for handling such cotton, plus the overhead
per bale cost of the Central Office of this Association."
"(10) It is agreed by and
between the parties hereto that this contract may be modified, and
amended, by the Board of Directors of the Association from time to time;
provided, however, such amendment and modification shall only affect the
members consenting thereto, but shall not affect the contract of members
who do not consent thereto or operate to release them therefrom. It
is agreed that other Marketing Contracts may be entered into from time to
time between the parties hereto and other members of said Association;
conditioned, upon the Grower being given the opportunity to adopt the same
in lieu of this contract."
"(11) The parties agree
that there are no oral or other conditions, promises, covenants,
representations, or inducements, in addition to or at variance with any of
the terms hereof; and that this Agreement represents the voluntary and
clear understanding of the parties fully and completely."[28]
We must keep in mind that there are
several independent buyers of cotton yet operating in the towns along the
central Brazos. However, these men must make a higher margin of
profit than the cooperative associations in order to make any money.
So, the trend of the times seems to indicate a steady drift of the farmers
to membership in the Texas Cotton Cooperative Association or the Brazos
Valley Cotton Cooperative Association.
[25]
Information secured by interview with H. E. Wrenn, cotton buyer at Marlin,
Texas, and J. M. Kennedy, publisher of the Marlin Democrat, Marlin, Texas.
[26] W.
R. McCullough and George Wolf, "Development and Organization of
Cooperative Cotton Marketing Association," American Cotton Cooperative
Association Bulletin, No. E-1 (New Orleans: American Cotton Cooperative
Association, April, 1937), p. 21.
[27] W.
R. McCullough and George Wolf, "Development and Organization of
Cooperative Cotton Marketing Association," American Cotton Cooperative
Association Bulletin, No. E-1 (New Orleans: American Cotton Cooperative
Association, April, 1937), pp. 21-23.
[28]
Pamphlet issued by Brazos Valley Cotton Cooperative Association.
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