Savannah morning news. [volume] (Savannah) 1868-1887, 1881-07-28
THE NATIONAL COTTON Ex-
CHANGE
Damage 10 Cotton on Seattle Sug-
gesIions of the Savannah and Mo-
bile Exchanges.

The following report Of the committee Of
the National Cotton Exchange, appointed
local importance, and will be perused with
great interest by our readers:
To The President and Members Of the National
Cotton Exchange Convention:
GENTLEMEN-The committee to whom
were referred suggestions No. from the
Mobile Exchange and No. 3 from the Savan-
nah Exchange beg leave to submit the fol
lowing report:
We have reason to believe that there eX-
lists no difference in the shipping laws OF
this country aud of European countries as
regards the obligations Of common carriers,
and the evil complained OF by the Mobile
Exchange arises from an absurd custom
prevailing in Liverpool, and possibly at other
European ports, of designating as country
damage all damage to cotton other than
that from sea water.
The chairman of this committee was
some years since appointed chairman OF a
committee of this Exchange to confer with
the Liverpool commercial bodies upon this
subject, and met delegations from the Liver
pool Board Of Brokers, the American Cham
Der of Commerce aud Of the Liverpool Ship
owners Association. At that interview It
was ascertained that the custom established
by long usage, aud which had been sus
tanned by the courts, was, as stated ABOVE,
to ascribe to country damage all damage 10
cotton except such as was caused oy sun
and water. After full discussion, 1t be-
came evident that this custom had become
so we'll established that it could not be
set aside. The various associations IN
Liverpool, whilst maintaining that
bill of lading signed ia good order and
well conditioned, would not OF itself be
deemed sufficient to fix the liability OF
vessels for damage resulting from fresh
water, stated If any additional evidence,
such as an official certificate from Cotton
Exchange, could be furnished to prove that
| the cotton was IN good order and Tree from
| country damage at the time of delivery to
the ship, then the liability could be fixed
upon and enforced upon the ship. 10 con-
| sequence of this, the New Orleans Cotton
| Exchange established system OF inspec-
| ton, and since then claims OF country dam
age have become extremely rare, II not alto
| gether unknown. The complaints, as your
committee have reason to believe, came
| mainlyfrom ports where lighters are used for
placing cotton on shipbOard, and it scarcely
| admits of a doubt that the damage com
| planned of arises from exposure on
| lighters, or by being kept on deck Of the
| ship before being slowed. As a remedy,
your committee would suggest that at such
| ports the local exchanges should appoint
| inspectors, who should furnish to shippers
certificates setting forth the condition in
| which cotton is delivered to the ships, or to
| the lighters when they are used. Such certif-
| Gates accompanying bill OF lading would,
| In the opinion of your committee, fix the
| liability upon the shipowner, and the re-
| coyery of damages in a few instances would
insure proper care on the part OF shipmas-
tiers. and all cause of complaint would be
removed. Freedom from liability is an in
centive to carelessness, and a proper en-
forcement of liability would, we believe,
remedy the evil complained OF by removing
| the true cause.
| Your committee would also suggest that
! If they would require the insertion upon the
| bill of lading the words: "This cotton was
free from country damage when received
the liability of the ship would be irrevocably
fixed. Ship masters would naturally object
to such a clause, but IL shippers unite in
| demanding that it be inserted, or that any
cotton claimed to be damaged should be re-
fused by the ship, it would soon become an
established custom.
The matter referred to by the Savannah
| Exchange, and embodied in a letter from
| the American Chamber of Commerce Of
Liverpool, is a growing evil which Is com
mon to all of the Southern ports, and which
like all other abuses, will, unless checked
| continue TO increase dBu huOulu II OO d
| lowed to become an established custom, II
NAV, as in the case of so called "countl J
damage" receive the sanction Of the courts
| The placing of cotton on deck, which bal
been signed for as under deck, Is a clea
| violation of the contract set forth IN the bill
of lading. In case of loss the underwater
could certainly resist payment for such cot
ton as could be shown to have been OF
deck. The fact that such cotton is slowed
| {, - 0ol hup tho fupl Is
cannot be pleaded in extenuatiOn o. a clea
/ violation of the OnIract at he out t.
Your committee recommend tha' IN every
instance where cotton is thus =" ongtullN
carried on deck the local exchange should
forward under signature and seal OF 1T
President and Secretary to the proper COM
mercial body at the port OF destination {
certificate setting forth the number of bales
I so carried, and IL possible giving the marks
of the cotton. This certificate should bt
| posted in the Exchange rooms OF the pOr
| OF destination as a notification to the con
signees aud underwriters.
Respectfully submitted by
JOHN B. LAFITTE, Chairman.
J. G.. BUSH.
HENRY DRUCKER.
The report was received and adopted.
NATIONAL EXCHANGE CROP REPORTS.
The committee to whom the matter of the
crop reports was submitted reported as fol
| lows:
Committee No. 4, appointed to consider
questions numbered l and 2, propounded
bv the Mobile Cotton Exchange, and the
reports of the committees on information
and statistics of the Executive Council, have
the honor to report as follows, to-wit:
l. Upon the suggestion that 1.-THE monthly
crop reports issued by the several exchanges
from the LIST of June to the 1st OF Deem
Der be either improved in character or en-
tirely abolished, that we are opposed to the
abolition of the present system, but recon
mend that the committees on informa
ton aud statistics of the various ex'
changes be authorized to obtain informa
ton in the manner now In practice
using more care in the selection OF
correspondents, applying the percentages OF
conditions of each county to the production
of such county, and upon this Information
coupled with such information as they car
acquire IN other ways, prepare a report Civ
ing their opinion of the condition OF the
crop in their district, having full discretion
in the weight OF all information received.
2. That we recommend the appointment
of committee to memorabilia Congress tC
make increased appropriations for weather
reports. EDWIN 2. MARCH,
Chairman.
W. n. JOHNSON, Secretary.