Omaha daily bee., 1910-04-24

resentatives Of New York and European
cotton firms who rushed to Decatur. Ala.
TO investigate the failure OF knight. Yam
cey & CO. declared today that transactions
involving millions which preceded and pre-
cipitated the crash may end In prosecu-
tions in the federal courts.
X Is alleged that irregular bills Of lad
ing attached to drafts for heavy amounts
were sent 10 New York and big cotton
housts in Europe. New York firms, il is
believed. have lost about 100000. while
European houses may have lost between
sl.Ooe 90 and ss.oOo.0oo. It is predicted here
that the failure viii tend to revolutionize
the cotton business in this country BY de-
stroying the confidence OF buyers in bills
OF ladlng. which hitherto have been
A0noped as II they were actual cotton.
One OF the visiting agents. referring 70 the
system used in dealing in cotton, said:
~Let as say that long established
cotton firm is doing business in Atlanta
The buyers for this firm go out into the
country and contract for cotton. Let US
say that they buy 100 bales at Decatur.
another 100 at Maeen ana third 800 at
Hogan This cotton Is shipped to At
lanta to the compress and local bills Of
adlng are taken from each town TO
Atlanta AT Atlanta lhs 50 bafes are
graded and say ten bales stakenz from
Deeaturs shipment and ten from another
and mixed II is graded to suit the mar
ket to which II Is TO be shipped. It is
rebaled.
HovT Bills Are HANDLED.
Vow she raflroaos give a through rate
from Decatur to Liverpool. let US say
So the firm takes the local bin Of iadins
!
exchange from the railroad a through bill
from Decatur TO Liverpool for 100 bales
when as a matter OF fact only ten OF tbs
100 Decatur bales have been used wheT
| this Is repeated indefinitely. Il can be seer
/ what possibilities there are for fraud
Then again, business here is done Iargel,
+ on credit on the honesty OF the shipper. A
! shipper gets blank bills OF lading from
railway agent and coolly forges the agents
I signature to them. otton is sold altogethel
/ In bnls oE iading. Hence the bfls ar,
negotiable paper in any cotton market
/ Let the shipper be big one; let Aim tell th,
agent that be has cotton to ship. and re
4 quires five cars At once, II Is possible ths
\ the cars are not available at once, 50, &
satisfy the shipper the agent may prepar
bills OF iading Tor the cotton 70 be shippe.
and Il may never be shipped. But tn
bills may be negotiated at any cotto,
center"
Local cotton men are inclined to rejoic
At the news that Liverpool cotton broker
are the heavy losers. They say tina
the Liverpool men, counting on receivtn,
from America cotton bought at a yer
low figure. have shipped back TO AmeTic
large quantities OF cotton to break tn
American market II the Liverpool me
have been deceived by forged bills OF lad
ing the local men claim the shortage c
cotton in England win cause the shu
down OF the mills there.
InvestiEate Failure.
BIRMINGHAM Ala. April Z.-Severl
legal and other representatives Of Engiis
and American cotton firms are in Birr
ingham, investigating the filing OF
voluntary petition in bankruptcy b
knight Yancey a Co. OF Decatur. Ala
Among those here are representatives Z
Minoprie Forgan a Co. Liverpool Bake
Patton company. New Orleans: J. J. WI
liams company. Liverpool; Wilson & Ailsoi
Galveston; Alexander Eccles & Co. Livel
pool Pennefathsr a. Co. Liverpool. ar
l. c. WOTneL Galveston.
There has been some intinafion that ih
ieEal representatives, are investigator
the sIleged presence 0f forged bills OF ladin
for cotton. The representatives here AZ
just from Decatur and the statement
made that very little information Is secure
from the firm. Several transactions a
under careful Investigation. the outcOu
- vhfeh Is moi fnafunafaH