Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-07-29
SOUTH WILL NOT AGREE
TO DEMAND FROM L0HD0II
Banks Will Not Guarantee
Validity of Through Bills
of Lading

G. A. Nicholson, president OF the
southeastern Cotton Buyers associa-
ton, said Monday morning that tie
banks, cotton dealers and railroads
the south Will not agree to the demand
of London bankers that through bills II
lading for cotton be guaranteed by
American banks. They will go no
further than agree that southern banks.
without assuming any legal responsible
ity, shall assure foreign bankers and
cotton dealers that the bills OF ladfng
issued by the roads are genuine.
The Southeastern Cotton Buyers as
ISOLATION at a meeting in Atlanta pre-
pared the following form of certifica-
ton by which banks would certify to
the genuineness of bills of lading:
we hereby certify that the agent
whose name is signed to this bill or
lading has acknowledged to us that the
same is his signature and that the rail-
road is in possession of tie cotton"
This from would be stamped on
through bills of lading and would TO
signed by local banks. Such certifi-
cation would carry no legal response
bllity and would be merely the banks
assurance that the bEls of lading were
genuine.
Mr.. Nicholson says that southern cot
ton dealers, southern banks, and south
ern banks, and southern railroads will
not go beyond such certification.
He looks for a delegation of London
and European bankers and dealers to
come to New York in a short while 10
meet with American bankers, dealers,
and railroad officials. he thinks they
repeat their demand for a guarantee by
the banks and he states positively that
IL will be refused.
CERTIFICATIAN TO SOLVE PROB
LEM
In his opinion the foreign delegation
will change it's position and agree to
plan of simple certification. In his opin-
ion such certification will be the final
means by which through bills of lading
will be protected and the cotton situa-
tion solved.
When the cable message from London
was first received in Atlanta, guaran-
tee" and "certification" were confused.
In the present instance they have an en-
tirely different acceptation. The Lon
don bankers would have southern bank
ers make themselves legally responsible
for through bills OF lading.
Southern railroads are taking the posi-
ton that no such step is needed to in
sure the genuineness of their bills or
lading. They insist that the alleged for
geries OF Knight & Yancey and Stephens
Miller are not really evidence that bills
ditions.
National banks are prohibited by law
from assuming such legal responsibility
as they would in guaranteeing TO through
bills of lading in the way that LONDON
bankers would have them, and other
southern bankers are not willing to as
sumo such responsibility.
BANKS AGREE TO PLAN.
1t is believed that all bankers will be
very willing to agree to such plan or
certifcattion as the Southeastern Cotton
Buyers association has proposed
John K. Ottley. vice president or the
Fourth National bank, said last week,
that the Atlanta banks would be quite
willing to agree to such a plan Of certifi-
cation.
dispatch from New Orleans says
that there will be a meeting Of cotton
buyers and OF bankers there within
short while to discuss the cotton situa-
ton 1t states that plan has been sug-
gested to have railroads first guarantees
their bills of lading and then have the
banks guarantee them in turn.
The dispatch from London stated that
American cotton bills of lading shall be
negotiable only when they are guaran-
teed by an American banking insttutiin-