The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-11
LACK OF CONFIDENCE
MAY PROVE SERIOUS
BLOW FOR THE SOUTH
Bankers Urge Law Giving
Protection Against Spuri-
Gus Bills Of Lading
SENTIMENT IN NORTH
FOR MORE PROTECTION
The National Bankers Association Has
Drafted Bill Which Southern SEN
ators and COnGressmen Are
Asked TO Support

Asked TO support
Expressing fear that the lack of conf
dence caused by the Knight-Yancey cot
ton failure will interfere with the moving
of the next cotton crop, unless a bill is
passed by the present session of Congress
which will eliminate the possibility of
spurious bills of lading, w. P. G. Harding,
president of the First National bank, pre-
scented to the Chamber of Commerce yes
terday the bill which has been drawn by
the American Bankers association, in
the railroads. and asked that 1t be in
dorsed Immediately by the board of di-
rectors.
He thought such action very essential
before the movement of the next cotton
crop begins, and read a telegram from
President Lewis F. Pierson of the Ameri-
can Bankers association, an editorial
from the Wall Street Journal, and sec
ton of the bill, which gives the meat
of the subject.
In the discussion L. Sewer told of the
hardships which the railroads suffer in
order notify shipments, and thought
that arrangements should be made by
which both the bank and the railroad
might be protected.
Sidney ]. Bowie took occasion to say
that 1t would be a serious reflection
upon American Jurisprudence and civili-
cation if anyone has forged bills of lading
to an enormuos sum and gotten the money
on them, and it is impossible to get an
indictment and conviction in the courts
of the state; not that he wished to ex-
press the opinion that any individual is
guilty of crime.
Here is President Persons telegram:
New York, June 9, 1910
wv. P. G. Harding. President First Ma
tional Bank, Birmingham, Ala:
bill lading measure known as stephens
bill, House of Representatives, No. 25335,
passed House almost unanimously Mon
day. 1t is doubtful If foreign bankers will
accept further bills of lading without the
passage of this law, in view of recent
frauds, aggregating nearly $4,000, 900. 1t is
absolutely necessary that the measure be-
come law this session of Congress for
continuance of free movement of cotton
and other crops this fall. Please wire
Senator Elkins. chairman Senate commit
tee, interstate and foreign commerce, urg-
ing immediate consideration. Have at
least ten influential and interested bank
ers in your state also wire him and your
two senators, and ask each of the bank
ers to have FIVE influential and interested
shippers and merchants do likewise.
Would appreciate wire advice regarding
action you take.
LEWIS E. PIERsON,
president American Bankers Associa.
tion"
Here is the editorial from the Wall
street Journal:
COST OF UNFINISHED CRIME.
LAWYERS and cotton traders from New
York, who have been south to look into
the situation relative to the failure of the
two cotton firms in Alabama and Mis-
sissippi. return with the Impression that
It will be very difficult to punish the men
responsible for the issuing of fraudulent
bills of lading They state that the prom
inence of the parties concerned will be
against the chance of CONVICTION; and that
there is a general satisfaction current
over the fact that these culprits had got
ten the better of the smart Yankees and
the Britisher.'
Ordinarily it is not good sense to give
after the experience of last fall, in which
many farmers dishonesty repudiated their
future cotton contracts with merchants, 1t
Is hardly to be expected that the issuance
of fraudulent bills of lading by which
a good deal of money was frankly stolen,
will be any more tolerable than the fall
ure of the cotton growers to fulfill their
obligations While the two transactions
are different in kind, nevertheless they
are one in principle. They show de-
plorable state of commercial morality, to
say nothing of the boosted honor of the
south, and so long as the condition exists
the injury to southern commerce is in
calcuiable.
"Those who call such acts smart may
think differently when it comes to moving
the next cotton crop. Who is going to
accept bills of lading among the banks,
exporters, insurance underwriters, steam
ship companies or importers, except with
humiliating and costly guarantees? The
cotton crop will not move without some
thing with more warrant to 1t than the
bill of lading hitherto used. Should there
be anything like congestion in the early
months of the new year. prices of cotton
might easily fall s. 10 or 80 per cent, re-
CARELESS of the size Of the crop. This
will mean millions of dollars of loss to the
chant.
This is the certain punishment for
those who now rejoice In the fact that
social position is capable of keeping the
bills of lading swindlers from states
prison"
Following is the section of the bfll read
by Mr. Harding:
Entitled bill relating to bills Of lading
H. r. $3.50.
sec. 4. That every carrier who HIM
self or by his officer, agent or servant,
authorized to issue bills of lading, shall
issue an order bill of lading or a straight
hill of lading, as defined by this act, be-
fore the whole of the property as de-
scribed therein shall have been actually
received. and is at the time under the
actual control of such carrier to be trans
norted. or who shall issue a second or
duplicate order bill of lading or straight
l.bili of lading for the same property, In
whole or in part, for which q former bill
Of lading has been issued and remains
outstanding and uncanceled, without
prominently marking across the face OF
the same the word duplicate shall be
estopped. as against the consignee and
every other person who shall acquire any
such bill OF lading in good faith and for
value. to deny the receipt of the property
as described therein. or to assert that
former bill of lading has been issued
and remains outstanding and uncan-
celled for the same property. as the case
NAV be. and such issuing carrier shall be
liable to the consgnee named in a
straight bill. or to the holder of an order
bill who has given value in good faith.
relying on the description therein of the
property for damages caused by the non.
receipt by the carrier of all or part OF
the property. or its failure to correspond
with the description thereof In the bill
at the time of its issue, or for the fall
ure to mark the word duplicate upon q