The Lee County journal. (Leesburg, Ga.) 1904-19??, 1910-06-02

NSN~~NA~
by reason of the recent failure Of d.
large exporting house IN Alabama and
another in Mississippi, through which
European banks are said OF have lost
more than 100000 the question OF
genuineness Of bills of lading issued
against shipments Of cotton has be-
come matter of great concern with
the bankers Of London, Paris and Yer
lin, and the exchange buyers in New
York. These banks have decided to
act in unison in demanding some
proof of the commences Of bills Of
lading in the future.
For this reason, the seaport towns,
notably New Orleans, Savannah, No
bile and Galveston, realizing the great
advantage they would have should
the bankers demand port bills OF lad
ing are making every effort to in
duce the foreign bankers to require
port bills Of lading against all ship
ments of cotton.
Should the foreign banks make
such ruling and the inland cities
Of the south fail to find some other
way of providing the genuineness Of
bills oil lading issued by the railroads
it is said that it would be practically
Impossible for any save the seaport
cities to engage in the cotton, bust
ness to any great extent.
Up to the present time, when cot
ton has been consigned to a Euro
pean firm the bills of lading issued by
the railroad to which the cotton has
been delivered are deposited in a
bank and the money for the cotton
drawn Immediately, thus allowing the
seller to receive cash with which to
purchase other cotton. 1t was by
forging bills OF lading, it is alleged,
that the Alabama and Mississippi
firms were enabled to swindle Euro
pean banks out of enormous sums.
And it is to guard against the repeti-'
ton of such occurrences that the
banks have decided to require proof
that the bills of lading are genuine.
Since the announcement of this in
tention on the part of the foreign
banks, cotton buyers in the seaport
towns, it is said, have gotten together
and are planning to form companies
whose business it shall be to see to
the loading of ships and the issuance
Of port bills of lading for the proper
number of bales shipped. II this plan
carries, and the European banks de-
mand port bills of lading, it is easy
to see how the seaport towns will
have vast advantage over the inland
cities, since buyers in the seaports
can get cash for their cotton on the
strength of their bills of lading while
inland cities cannot.
To meet this emergency, it was
proposed at the meeting of the bank
ers' that trust company with a capl-
tai Of several millions be formed
here for the purpose of guaranteeing
the bills of lading issued on all cot
ton shipped from this point. The es-
tablishment of such a company, it is
believed, will preclude any possibility
of fraud
III Is uOL U4ly III <AtAuAeeS1 ~ "Nf'S -
that those interested in the cotton
business are thoroughly aroused over
the present situation. In every other
inland city in the south the same
apprehension is felt, and as result
a meeting Of the Southern Cotton
Buyers Association has been called
for II, o'clock Thursday morning I'll
will be held in the convention hall OF
the Piedmont hotel, and full attend
ance is expected
AT this meeting, it is believed, not
only will plans for meeting the I'M
pending emergency be thoroughly
gone into, but it is thought likely that
a delegate will be chosen to attend
meeting of the London bankers, which
is to be held in June, at which meet
ing il is to be definitely decided just
their protection on American bills OF
lading.