The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-05-18
CLASSIFICATION OF COTTON.
Mr.. WILLIAMS VIEWS DISCUSSED
BY COTTON WEN.


gard II as unprecedented BrOIk-
er Tells Some of the Ins and Outs
of the BuSiness-Men In Foreign
Ports Who Make Their Profit by
ReclamafiOns-Rec InmatiOns In
creasing with Each Year-The
Poor Quality of the Present Crop
Partly Responsible.
The argument advanced by Mr.. j. P.
Williams in favor of uniform standard
classification of cotton throughout the cot
ton states at the point of shipment, such
classification TO be final furnishes a sub
pect for discussion among the cotton men
on which they are not all agreed.
Some think the plan chimerical, SOM
do not think the situation demands any
such remedy, while others agree with Mr..
Williams that a uniform standard CLASH
fication would settle much vexed ques-
ton and one that is giving the export
trade great deal of trouble as well as in
cidentally result in benefit to the PRODUCES
of cotton.
1t was generally stated that one cause
of the unusually large amount of recla-
nations from foreign buyers this year was
the fact that this seasons crop was much
below the last in quality due to storms
and other unfavorable conditions This
seasons crop having to come in compari-
son with the types brought over by the
foreign buyers from the crop Of unusual
quality of the previous season naturally
NV
quence is that the cotton buyers conclude
that their purchases are not up to grade
and make reclamations.
There is a good deal 10 be said on botn
sides of the question, however. One we'll
known broker said that reclamations ma de
upon him this season so far amount 20
$4,000. Fortunately these losses do not
fan directly upon him, or ne would not
long continue In the business, but are
passed back to the interior buyers upon
whose judgment the cotton was classed
and purchased. This distributes che loss
among a number Of buyers Usually re-
sponsble buyers viii make good the loss
il they think the claim unjust
they may compromise or refuse 10
pay altogether. The trouble caused
by irresponsible buyers who re-
fust to make good these losses was
the subject of discussion in the Cotton
Exchange, and resulted in a change in
the rules which permits any person in
good standing in business in the United
States TO become member.
The poor quality of this years cotton
crop, as compared with last year" said
the broker, lis undoubtedly responsible
for many Of the reclamatious which have
been made. At the same time, this recla-
natt 4cfVa To
is increasing with each year. I have been
in the cotton business a number of years
aud 1t is only in recent years that we have
been troubled with reclamations 1t begun
only a rev years ago and has increased
with each year, and, in my opinion. will
continue to increase until something is
done to offset 1t. The ports from which
nearly all the reclamations come are
Liverpool and Bremen. With Russia and
the rest of the continent We have al
most no trouble. In Bremen and Liver
pool they have boards of arbitration which
pass upon almost every bale of cotton
coming to those ports for the purnose
of determining whether or not they come
up to grade. report sent out from Bre
men recently gave a statement of the
amount of cotton received at that port
that the greater part had been subjected
to arbitr1 ton. and that in the majority
of instances reclamations had been made
The statement was really an alarming one
While, in many instances, l have no
DOUBT that these reciamations are just in
equally as many instances they are unjust
The rapid increase in reelamations is due
in my opinion, TO the faces that there are
evidently a large number of people in
Bremen and Liverpool who depend for
their profits on what they get by rec}ama-
tons. / know that purchases of cotton
are made at prices at which il is fnpossl-
bic for profit 10 be made otherwise.
These people can make their purchases
OF cotton under contract with the spin
ners subject the cotton to arbitration at
Liverpool or Bremen, secure a claim for
Ieelamauons and then pass the cotton on
to the spinners, depending for their profits
on what they get from the reclamations.
THIS practice is greatly demoralizing 10 the
trade and is likely to prove more so.
While / do not believe that a standard
classification would resuli in any great In
crease in price to the producer. I believe
that it would result in some increase and
that It would greatly improve the condi-
tons under which the trade is conducted
When the foreign buyer knows that me
cotton must be accepted at the classif7ca-
ton given il in this country and that this
classitiD alton is reliable ne viii be able
to make his purchases more confidently
ana with .ess fear Of loss, and there VIII
be less room for sharp practices. Such
a state of affairs can only be brought
about by legislative cooperation among
al the cotton states and, perhaps. ma
tlonal legislation would be required to eff
feet the desired result. This canrot be
accomplished by joint action through the
cotton exchanges. for the reason that
many members of the exchanges would
oppose such action. Their knowledge of
the cotton business would be of less value
10 them with fixed standard of olasslh-
cation, and they would be placed upon he
same footing with men of less experience"
THE injustice about This method of for
egn arbitration" continued the broker.
rs this. In every large shipment of cot
ton there Is certain TO be some cotton of
better grade than chat for which il is sold
6 well q $ some not quite up to grade with
one or two ba.es perhaps considerably be-
low grade. The foreign board of arbitra-
lion gives the American seller no credit
whatever on any of his cotton, which is
above the grade for which it is guaran-
iced but for every baTe which is below
grade. even in the slightest degree. and
tes c0r11tfYv & r@pef rfrfd1H pon1nafs1