Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-09-01
49, Aa 8ttcaf.a EaHT
TO Safeguard
Cotton Business

New York Aug. 31.--The new agree
| ment intended to safeguard cotton ship
ping documents viii go into effect to-
! morrow and the central bureau provided
for in that agreement will begin its ac-
tivities with the backing OF practically
! all the cotton carrying railroads, il was
announced here tonight by the Liverpool
Cotton Bills of Lading Conference COM
mittee in a statement which explained
! in detail the plan adopted and answered
| various criticisms. The committee said
lit issued the statement I'm order to clear
! the ends to which the committee has
been working. The statement refers to
the safeguarding previously of ocean
| bills of ladine and to the recent forgeries
of railroad bills which led to a demand
| for change of system The statement
| continues:
"Actine upon the general demand for
reform of some character the Liverpool
committee drafted the agreement which.
with some notifications had now been
signed by practically all the cotton
sarrying railroads. This agreement pro-
vided as in the case of ocean carriers
that expert bills of lading should be is
sued against physical cotton and not
against documentary claims, the validity
of which was unknown.
'The agreement also adopted the vail
dition signature certificate and provid-
ed for other safeguards against irregu-
larties on the part of railroad agents.
The agreement further provided for the
establishment of a central bureau to
which all of the railroads would send
signed copies Of every expert through
cotton bill of lading issued in order that
exchange buyers might advise this CEN
trail bureau of the bills of lading pass
ing their hands. which bills could be
checked up by the general bureau against
the copies i'm their possession.
AS far as possible" the statement
continues, the opinion of exchange buy
ers in various parts of the country was
obtained and it is the belief of the Liv-
erpool bin of lading conference commit
tee that the exchange buyers will unan-
imousIy cooperate when the full advan-
tages of the new safeguards are APP
preciated t*"* all bankers will mani
testify wish to safeguard themselves if
they can safely do so. and if the plan
of the central bureau as now proposed
is not safe for the bankers it will be
made so"
The committee in its statement denies
any intimation that the central bureau
plan has been "Aftfully devised TO thrust
upon the American exchange buyers any
new and unknown liability"
The committee adds that "If any
technical objections exist they win be
eliminated"
The committee saws that it is not its
desire, nor that of European interests
ITO blacklist anybody connected with
the cotton trade" and expresses its be-
lief that American exchange buyers will
b. glad to cooperate with European in
terests, both for their own protection
and for the protection of their friendly
correspondents abroad
II is stated that the expense of oper-
atne the central bureau will be borne
by transportation insurance company
but should it be found that the burden
is too onerous for the cotton underwent
ers The American railroads and the Eu-
ropean bankers will very likely be will
| ing to subscribe a fair amount to make
up the deficit. Upward of three score
railroads are listed at the close of the
statement as having subscribed to the
central bureau plan.
While all but seven or eight of the
railroads which carry any cotton at all
have. according to the committee, sign
ed the agreement, only few of the
banks handling cotton bills, IL is un-
derstood have agreed to the new system
and among those holding out are some
of the largest concerns.
Charles s Haght attorney for the
Liverpool committee. declared emphati-
ealIy tonight that the new plan would
certainly go through