The Birmingham age-herald., 1910-10-16
LOCAL COTTON MEN
 AGAINST THE PLAN
Burden of Foreign Scheme
 Falls on Farmers
CONFERENCE YESTERDAY
All Birmingham Cotton Men Were Rep resented md They Were Unanimous Against Enforcement of Plan
 Proposed in Europe

At meeting held yesterday by all the cotton men in Birmingham at the First National bank, the European plan Of esta blishing a guarantee corporation for the guaranteeing of export bills of lad ing for cotton was not accepted
 The chief reason for the refusal of the local men, who were presided over by President W. P. G. Harding of the First National bank, was that the tax of keep ing up such a validating company would fall on the farmers of the south, and that was not deemed proper. The con- ference decided that the validating bill of lading for export shipment, as out lined by the railroads, was adequate protection and all that could be reason ably expected by the European bankers.
 The conference was called by MT Hard T. Talbert. vice president of the National City bank of New York. The plan was suggested by the president of the Lon- don and Midland banks, who Is now in New York trying to secure the accept ancy of his guarantee plan by the Amer ican bankers.
 The financiers In New York have held several conferences with the European bankers without arriving at any conclu- sion. The telegram of MT. Talbert and the answer of MT. Harding, forwarded immediately after the meeting, as follows
 Telegram From Talbert
 New York. October 14, 1910. "W P. G. Harding, President First Ma
 tional Bank, Birmingham, Ala.
 we can settle cotton difficulty in no other way than by giving Europeans a guarantee covering not only integrity of validated bills of lading, but guarantee ing against forgery Europeans proposed to form a guarantee company of large capital for that purpose, furnishing such insurance at a cost not more than or cents per bale. They will invite tn- terests on this side to join. We are favorable to this settlement and hope you will use your influence with bankers and cotton trade generally to cheerfully &C., cept this as best possible solution; other wise cotton movement will be seriously impeded next week. If accepted, can pro- cure necessary extension of time. Would appreciate your cooperation and an ex- pression of your opinion.
 JAMES T. TALBERT, "vice President National City Bank, New
 York"
 Birmingham. Ala. October 1b. 1910.
 Letter From Harding
 Joseph T. Talbert, Esq, Vice President
 National City Bank. New York.
 Dear Sir: Referring to your telegram of yesterday would state that I have today had a conference with representa- lives of all the cotton firms doing bus mess in Birmingham. The proposition that a guarantee company with large capital be formed for the purpose of furnishing insurance covering not only the integrity of validated bills of lading, but furnishing protection against forgery, was fully discussed.
 Those present at the conference felt that the system of validated bills of lad ing as now adopted by the railroads, ought to furnish full protection pending the final disposition by the United States Senate of the Stevens bill, which passed the House Of Representative sat the last session. Our local cotton men feel that while 1t is an economic law that all tar ifs and other charges upon the exchange of commodities are borne by the con- suner that in this case the exception will prove the rule, and the southern farmer-the producer-wil have to pay the guarantee premium, as the foreign cotton houses wire In their limits, which are net to them, all freights, exchange insurance and other charges being paid on this side.
 'It was the unanimous sentiment of those present at today's conference that if this system of guarantee once be es- tablshed, 1t would result in a permanent charge, which even the passage of the Stevens bill would not relieve; and they feel that it may pave the way for the re-entry of dishonest and irresponsible cotton firms into the business, as the i'm porters would depend entirely upon the protection afforded by the guarantee com pany, and would pay but little attention to the moral and financial responsibility of those they deal with in this coun- try.
 '.The cotton houses in Birmingham. however, realize that this question is an issue between the banks in New York and other large ports. and the foreign banks, and If no other settlement of the question is possible they wil adapt them selves to the new conditions and do bus mess as usual, without wasting time In futile protests. Yours very truly,
 ''W. P. G. HARDING, President"