The Birmingham age-herald., 1910-12-09
Suggestion of Cotton Bills of
 Lading Causes Trouble
COTTON MEN MAKE PROTEST
President Thompson of = Orleans Cotton Exchange sfn raft's Plan Would Bur sSshe Cotton Gro e 2
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New Orleans, De c Fer s.-Presdent Tafts recommendfcs in his annual message to Congre latiye to the guar ing has stirred up furore among the cotton interests of the south, who assert that the Presidents suggested plan would result in a heavy tax upon this indus try.
 President w. B. Thompson. of the New Orleans cotton exchange, today issued a statement in which he sets forth the in- justice of the plan to the southern cot ton grower and merchant. Official action is expected to be taken within the next few days by the New Orleans exchange and by commercial bodies generally throughout the south as a protest to Congress against the adoption of any such plan as that outlined in the Presidents message.
 President Thompson's statement fol- lows:
 President Tafts message relating to through cotton bills of lading announces a perfectly correct principle, but the means by which it is proposed to give effect to the principle will make the rec commended legislation IS objectionable to American exporters and producers as was the guaranty company plan which recently encountered the unanimous op- position of southern cotton and banking interests.
 'srhe President proposed that a common carrier issuing a bill of lading shall be liable to the bona fide holder thereof for the valte of the goods described therein, but qualities the proposition by the suggestion that the carriers may is- those under which the carrier shall be absolutely liable for the reeitals in the bill. and second. those under which the carrier shall assume no liability except for goods actually delivered to the agent issuing the bill. For issuing the first kind, or the bill containing an absolute guarantee, he recommends that the car rter x par,nlttei q make ftssnall csarge in addition to the rate Of transporta- tion. f
 Tt is perfectly obvious that the first named class, or the guaranteed bills, would be the only kind used in through shipments, for the plain reason that the foreign banker and merchant would ex- act the best bill, inasmuch as 1t would cost them no more than the inferior and unsecured documents. The American ex- porter would, therefore, be compelled to supply the bill guaranteed by the car rier.
 Tn order to secure this bill from the carrier the shipper would be obliged to result of this assessment would be two fold. In the first place this charge would, as all fixed charges eventually do, come out of the cotton and the producer would thus be saddled with an onerous tax: and in the second place any shipper, no matter how Irresponsible or unworthy he might be, could by securing the guar farmer pays for) place himself upon the same plane of credit and advantage oc- cupied by merchants of character and reputation. In other words, the producer and the responsible cotton trade would be called upon to pay the necessary pre- mium in order that the carriers might be induced to guarantee the transactions of Irresponsible and possibly dishonest per- sons.
 "It was proposed by foreign bankers short while ago that a company be formed for the purpose of guaranteeing through bills for consideration. The cotton interests of the south strongly and with striking unanimity protested against the imposition of this unjust and unequal burden upon the American cot ton trade, and the plan was promptly abandoned The proposed legislation in no wise differs from the guaranty com pany plan, except in the one case sepa- rate corporation would assume liability and collect compensating fees from un-, offending third persons, whereas in the other the assumption of such liability and the collection of such fees would rest with the railroad companies themselves.
 q feel quite sure that when the posi- tion of the southern cotton grower and merchant in the premises is brought to the attention of the President he will give it due and careful consideration