The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-02-26
AGAINST INTERIOR BUYERS.
MI A. c. Ahrens' Complaint Filed
With the Cotton EXCHANGE.

menges, Preyer & Co, addressed a circu-
lar letter yesterday to members of the
Cotton Exchange. calling their attention
to communication which he had recently
addressed to the president and directors
OF the exchange, in reference to matters
Affecting cotton buyers at Savannah.
MI Ahrens complains in his circular let
ter to the members of the exchange that
the arbitrary lines on which many peo-
pie in the interior have of late seen fit to
conduct the business with the cotton buy
ers in Savannah, induce me to ask the
Savannah Cotton Exchange to take some
action in the matter. The buyer has to
pay for the cotton in full, upon presenta-
ton of the railroad bills of ladng, and in
most cases without being allowed to ex-
anime the shipments until after arrival on
the other side of the Atlantic. The sellers
agree to pay all properly authenticated
claims from Europe, within ten days after
presentation, but 1t is often the hardest
thing imaginable to get payment In
months, if at all, even though the claims
are fully certified to by their own specially
appointed representatives. 1t appears that
the Savannah buyers have almost no re-
course whatever, after they have once paid
for the cotton, but the good will of the
Sellers"
In his letter to the directors of the ex-
change, which was also sent yesterday,
Mr.. Ahrens says, in part:
Il have received answers from interior
cotton sellers that they were under no
obligation to recognize the rules of the
Savannah Cotton Exchange, and from my
personal experience l know, they have
refused, and are refusing, to sign the con-
tract which the f. o. b. sellers sent them.
They do not wish to comply with the Sa-
Vannah Cotton Exchange rules, and though
the f. o. b. sellers here bind themselves
through their contracts to settle oil diff
ferences according to these rules, and thus
enter at the time of sale into obligations
with the seller, quite different to those
which they entered into with the buyer,
responsibility is disclaimed. 1 respectfully
submit that the Cotton Exchange may en-
deavor to bring about better understand
ing between the buyer and seller, and to
this end beg to suggest, that a representa-
tive meeting of interior shippers be invited
to confer with our exchange upon these
points, in order to bring about a harmon
ious working, and to preserve the dignity
of our Cotton Exchange and it's rules.
lone very serious grievance of the In
terror seller was found to be in the want
of official types in our exchange. 1 know
that interior sellers have repea tedly asked
f. o. b. sellers here and also recognized
classers, for types, as a guidance for the
settlement of cotton sold on Savannah
settlement" terms and that their request
was not compiled with, probably for the
hat al afp IL
ards kept In the Savannah Cotton Ex-
change. This is one more point on which
I would ask for your elaboration and ac-
ton
81 Furthermore beg to point out the lack
of care with which interior cotton is Of
ten offered in our market. There are. of
course, many respectable and first-class
concerns in the interior, but, on the other
hand as everyone knows, there are also
many irresponsible firms, yet these latter
are allowed, and have the privilege, of Of
fering cotton through Intermediates on the
floor of our exchange, without hindrance
or hesitation. In all other principal cotton
ports, and l may be allowed to especially
draw your attention to a market which
completes with US most vigorously In some
sections, viz: New Orleans, the brokers
guarantee as a matter of course, all the
shipments of their interior connections land
1t may De well TO mention IndL the SdNdl-
nah f. O. b. prices are almost always fully
up to the prices in the New orleans mar
ket, and prices here are often decidedly
higher. During the last plethora of cheap
freight here, the Savannah f. o. b. prices
were u to Slice. higher than New Orleans
E. o. b. prices and besides the broker there
invariably guarantees the good color and
staple clause"
Mr. Ahren5 said when seen about the
matter that his letter stated his position.
He had no dougt that the matter would
be promptly taken under consideration by
the board Of directors of the Cotton Elk
change, he said He had. in fact, brought
this matter to their attention before, but
had only done so formally yesterday
The trouble of which he chiefly COM
plains, MIR. Ahrens said, is that the buyers
at the port have no recourse upon the in
terror sellers who are often irresponsible
parties The buyer Is drawn upon as soon
as the shipment is made and the bill has
to be paid before he has the opportunity
to examine the cotton. AS the result there
are frequent claims from the other side
for cotton which does not come UP to
grade. The buyer has to pay for this diff
ference, but he gets very
little satisfaction when he pre-
fers claim upon the interior seller
The seller sometimes pays part of the
loss but it is very rarely that he settles
in full. AS the interior buyers are for the
most part without capital of their own,
but operate upon capital advanced them
by the local banks, the buyer at the port is
helpless.
1.-THE result of this method Of doing BUSH
ness" said Mr.. Ahrens, lis that each firm
engaged in buying cotton here is out sew
eral thousand dollars each year on ac-
count Of these claims for which they arc
unable 90 affect settlement with. the in
terror sellers"
Mr.. Ahrens' idea seemed to be that a
discussion of the matter by the directors
of the Cotton Exchange might lead 10
some understanding between the buyers
and brokers, by which lie latter might
become responsible for the interior sellers,
or at least require of the sellers than they
enter into such contracts as Will require
them to make good any loss on account
of any differences in grade of cotton fur
nished by them.
President williams of the Cotton Ex-
change when seen about the matter said
that he preferred not to discuss Mr. All
rens' letter, as the letter will be consid-
arad NV the board of directors of the Cot