New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-19
ACTION PLEASES BANKERS
Feared Cotton Bills of lading
Trouble Would Be Serious.
LIKELY TO MODIFY PLAN
Proposal of Surety Companies,
Looking to Guaranty, VIII
Probably Be Accepted.

The announcements that the foreign bank
ers had agreed TO extend the date for the
operation of the existing system of hand
ling cotton bills from October 81 to the
end of the year, was well received In
banking CIRCLES where it had been feared
that, in case the European bankers adj
hered to their announced intention Of re-
fusing 10 accept unguaranteed bills OF lad
ing for cotton after the end of this month,
there might be a serious arrangement of
the money market. AS yesterday would
Rave been the last day when cotton bills
could have been negotiated this ex-
change market TO allow for their accept
ance by European bankers as heretofore.
the granting of the time extension IT was
pointed out, came none too soon 10 avoid
what would probably have been a highly
disagreeable situation
Bankers interested in the negotiations
believe that the extension agreed upon
practically insures the final settlement Of
the cotton bill of lading controversy in n
manner satisfactory 10 foreign and Amert-
can bankers. as well as 70 the cotton in
terests. It is thought probable that the
matter will be worked out along the lines
suggested by Sir Edward H. Holden. chair
man of the foreign bankers committee in
banking committee His plan was for the
creation Of a guaranty company to guar
antee cotton bills of ladng at a cost of S
or cents a bale, but it is understood that
a guarantee by a responsible surety or in
surance company would be acceptable 10
the foreign bankers.
In this connection it was learned yester-
day that a number Of the leading surety
90
the banking committee that has been con-
Quoting the negotiations. offering 70 guar
antee cotton bills at a charge of eight
tenths of a cent on the value of the cotton
covered in the bill Of lading the minimum
charge TO be six cents a bale.
The companies making the offer are
the American Surety Company of New
York the National Surety Company. the
Fidelity and Deposit Company Of Mary
land the United States Fidelity and Guar
anty Company and the Title Guaranty and
Surety Company. These companies. which
have a total capital and surplus OF ST.
200. 900, agree to guarantee the bills joint
Iy and severally, and the signature of all
is to be attached 70 each bill Of lading.
It is believed that several other surety
companies will join with those mentioned
their guarantee UP to s2O.OOO.OOO.
The bankers have not yet voted upon
this proposition, but it was said in well in
formed quarters yesterday that the offer
OF the surety companies would probably
be accepted and that the plan Of organic
ing a new company to guarantee cotton
bills would be abandoned
John E Gardin. vice-president Of the Ma
tionaI City Bank. and a member Of the
bankers bill of Iading committee. said yes
terday with reference 10 the proposal OF
the surety companies to guarantee cotton
bills. that besides removing the mOnopOlis-
tic feature of a single guaranty company,
the acceptance of surety companies as
guarantors would be virtually acceding 20
the original proposal put forward by Arneri-
can bankers in the, early stages Of the con-
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