The Southwestern Historical Quarterly, Volume 71, July 1967 - April, 1968 Page: 195
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The Round Bale Cotton Controversy
marketing of cotton: shipments on through bills of lading, the move-
ment of buyers and sellers of cotton into every cotton growing hamlet,
and the establishment of branch offices by the larger houses in the
interior." The ports sought to meet the new competition by building
railroads into the interior,' establishing cotton exchanges,' and provid-
ing better service." Before the end of the century the old factorage
system had almost disappeared, and the port merchants, if they survived,
had adjusted to the altered conditions.'
In the 1890's, with the introduction of high density gin com-
pression, technological innovation again threatened to disrupt the
3Nimmo, First Annual Report, ioo, 129-130, 146; Appendix No. 14, pp. 175-177, ibid.;
Nimmo, Report ... Internal Commerce (1879), 124, 148-149; Harold D. Woodman,
"The Decline of Cotton Factorage after the Civil War," American Historical Review,
LXXI (July, 1966), 1225-1226.
4Louisianians in 1877, for example, organized the New Orleans Railway Co. to
connect the Crescent City with Shreveport, Louisiana, and Marshall, Texas. In 188o,
New Orleans made connections with Houston and thus with all of the latter's links
into the Texas blacklands. Nimmo, Report . . . Internal Commerce (1879), 147; Nimmo,
Report . . . Internal Commerce (1881), Appendix No. 4, p. lox. Galvestonians organ-
ized the Gulf, Colorado and Santa Fe Railway Company in 1873 to circumvent Hous-
ton, avoid the imposition of frequent quarantines by that city, and reach into the
cotton producing areas of Texas. S. G. Reed, A History of the Texas Railroads (Hous-
ton, 1941), 283-284.
'The New Orleans Cotton Exchange "was formed for the sole purpose of mutual
protection and cooperation in preserving and building up the cotton trade of New
Orleans.... " New Orleans Cotton Exchange, Report of Proceedings of the Twelfth
Annual Meeting of the New Orleans Cotton Exchange (New Orleans, 1882), 12. Cotton
interests at Galveston formed a cotton exchange in 1873 to eliminate complications and
frictions developing between buyers, sellers, and factors as the trade became more com-
petitive. Galveston Cotton Exchange and Board of Trade, Galveston Cotton Exchange
and Board of Trade (Galveston, 1899), 6-7.
Cotton shippers were complaining about the loss of the weight of cotton marketed
through New Orleans. The local cotton exchange took steps in 1874 providing for
the adoption of a system of inspection and supervision at the compresses, warehouses,
depots, and on the levee. The results were highly beneficial to the New Orleans mar-
ket. Address of the President of the New Orleans Cotton Exchange (annual meeting),
November 29, 1876, New Orleans Cotton Exchange Minute Book B (Archives, New
Orleans Cotton Exchange, New Orleans), 31o; Annual Report of the Committee on
Supervision, November 21, 1876, ibid., 296-297; New Orleans Price Current, February
22, 1871. The Galveston Cotton Exchange set up a committee on supervision and
inspection in 1882. Galveston Cotton Exchange, Charter, By-Laws and Rules of the
Galveston Cotton Exchange (Galveston, 1882), 18-19. Both New Orleans and Gal-
veston cotton interests sought, and finally obtained, the former in 1878 and the latter
in 1895, deep water to the entrance of their harbors in order to take advantage of
the new class of vessels. New Orleans Cotton Exchange, Minute Book C (Archives, New
Orleans Cotton Exchange), lo1, 129-130; Nimmo, Report . . . Internal Commerce (1879),
Appendix No. 15, p. 145; W. L. Moody, president, Galveston Cotton Exchange, Annual
Report to Members of the Exchange, November 29, 1899, Galveston Cotton Exchange
Minute Book (Archives, Galveston Cotton Exchange, Galveston), 510-512.
'Woodman, "Decline of Cotton Factorage after the Civil War," 1235-1236.
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Texas State Historical Association. The Southwestern Historical Quarterly, Volume 71, July 1967 - April, 1968, periodical, 1968; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth117145/m1/227/: accessed April 24, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting Texas State Historical Association.