The Birmingham age-herald., 1903-05-22
General Counsel for Railroads
 Pushing Investigation
SPLIT BALE SHIPMENTS
It Is Said One of the Railroads Has Had Some of It's Bills of Ladlng Returned Properly Ad-
 Iusted.

Col. w. A Henderson. general counsel of the Southern railway, and Col. A. R. Iawton. general counsel of the Georgia Central, accompanied by the auditors Of the two systems. were in Birmingham yesterday. They were in conference with local attorneys of these two systems and with attorneys of the Alabama Great Southern and the Frisco system all day.
 It Is said the matter under discussion was in regard to the recent shipment of light weight bales of cotton from Bir- mingham by the firm of Smith & Cough Ian.
 Cotton to the amount of several thous- and bales has been shipped out of Blr- mingham over the different railroads for export and to mills in the east which has been in the form of what is now known as split bales. In other words bales have been split in half and ship ped out from the compress company as full bales the railroads issuing bills of lading upon certificates from the com press company. In one instance bills of lading were issued by railroad in Bir- mingham for 6J0 bales upon compress cer- tificates when no cotton was actually shipped. Up to date it Is said this railroad has been forced to stand the loss Of something like SO,OOO. It IS also said that other bills of lading of like character have been issued and gone through the banks in the regular channels of trade.
 Getting at the Inside.
 As it is, claims have been made against the railroads, and the general attorneys and chief auditors of the several sys- tems have been in Birmingham to get at the Inside of the situation and proceed legally in the matter.
 The firms in Liverpool Savannah and the eastern spinning markets which have received 250 pound bales of cotton, billed as regular 300 pound bales, and which have paid drafts, with bills of lading att tached, calling for 800 pound bales, have returned said bills of lading to banks and attorneys calling for full settlements eith- CT from the railroad companies or from the firm making short shipments.
 It Is said that at least one of the rail- roads has had many of its bills of lading returned to It's officials and properly ad- justed, and that to this extent the matter has been settled. This however, was not definitely verified last night
 Col. W. H. Denson, attorney of the firm of Smith & Coughlan, was not in the city yesterday, or could not be found, and therefore no statement could be gotten from him. The attorneys for the rall- roads refused to make any definite state ment for publication.
 It is said that the shortage In weights of cotton and the amount Of cotton called cotton was actually shipped, will amount to something like s2OOOOO.
 No Statement From Firm.
 No statement has yet been issued by the firm involved in the short weight shipments, and the railroad people have up 10 date QecHned 10 make any public statement. The matter Is one. however. that has been discussed Tn every cotton market in this country and in England It is said to be the most remarkable case on record.
 The firm In question is said to have ad- mitted having shipped short weight bales, and also the issuance of compress certificates when no cotton was act ually delivered to the railroads, for which bills of lading were received from the agents upon presentation of said compress certificates. These bills of lad ing were attached to drafts upon firms In other states and countries. and sent through the banks or discounted by the banks in the regular order of business They went forward to the firms and were paid. The firms, getting no cotton. have made claims upon the railroads, and there the matter now stands.
 There has been no criminal prosecu- tion up to date. and no one can tell at the present time whether there will De any or not.