The Birmingham age-herald., 1910-09-02
PLAN IS DEVISED
 FOR EXPORT COTTON A. G. $. Will Validate Bills of
 Lading EACH WILL BEAR SEAL Validating Agents Will Re Stationed in the Principal Towns Between Bir- mingham and Meridinn-How
 the Plan Works

The first step taken here to protect cotton export bills of lading so they will be safely negotiable was placed in opera tion yesterday by the Alabama Great Southern railroad and it Is expected that the plan as outlined will come pretty near safeguarding the bills of 1ading issued by that company.
 F. T. Steele. freight traffic manager, after a conference with the officers of the company, has announced that val idating agent agency has been es- tsblished in the cities and towns between Birmingham and Meridian which have congresses and from which cotton is billed for export shipment.
 According to the plan Mir Steele in Bir- mingham or his princpai clerk will ap- pend to all bills of lading issued by the local agent a certificate to the effect that the bill for export shipment signed by the agent and attached to the certifi- cate Is true and genuine. The certificate will read something like this:
 "The Alabama Great Southern railroad certifes that A Is a cotton agent for this company and that his signature at taehed to the appended export cotton bill of lading is true and was signed by the said A as agent
 In the certificate will be given the num- Der of bales of cotton for which bills of lading are issued and other technical information and regulations. The val dating agent will then stamp the bill of lading and the certificate with a seal of the company nich will be kept under lock and key. One-half of the seals inn pression will go on tne bill of lading, while the other half will be impressed on the certificate. In this manner it is be- leved it will be extremely difficult for banker to be deceived in the negotia ble or original bill of lading. After re- ceiving this validation the shipper may procure from the agent copies of the bill but none of them except the original will have the seal and certificate. The offices of MT. Steele will validate bills from Birmingham Fps and Eutaw. The cashier at Meridian and the one at Tus- caloosa, who are under bond, will vali- date or certify to the local agents sigma ture at those places.
 The original bill of lading to which has been attached these safeguards, it is thought, will be sufficient safety for the banks of this country to guarantee them to the bankers of Europe. The reform has been brought about by the cries of fraud which have arisen in Europe as a result of the Knight, Yancey Co. failure The foreign bankers demanded some safeguards for their money and the bankers of this country and the railroads are responding to that cry as quickly as possible The plan as outlined by the Alabama Great Southern will be followed. it Is believed, by the Southern railway and allied lines. The agents of the Ala bama Great Southern have been pre- sented with a circular signed by MT. Steele and M L. Maloy, comptroller, to the effect that these safeguards will here after be thrown around cotton shipped for export.
 The Southern railway was affected by the bogus bills of lad:ng said to have been issued from Decatur which were brought to light when Knight, Yancey & Co. failed. The Alabama Great South ern was not affected