The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-09-06
CHANGES COTTON PLAN.
BANKERS COMMITTEE YIELDS
70 SOUTH'S OBJECTIONS.
Scheme TO Be Considered for Amend
ments to Bill of Lading Validation
Should Prove Acceptable to All
Interests.

meet objections Of bankers to certain
features Of the new central bureau
plan for the registry Of export cotton
bills We're made in the plan today at
conference Of the members Of the
bills of lading committee Of the
American Bankers association. With
these changes effected, the committee
said that the plan for the establish
ment Of a central bureau here will be
given consideration by the exchanges
and by the banks Of the country.
In a statement issued tonight Thos.
b. Patten, general counsel for the
American Bankers association, told
OF objections that had been made to
the plan and explained the manner
OF the committee had met them. The
statement said:
AT its meeting held in Nashville
May 2. 1911. this committee approved
the general principle Of the plan
submitted in the report Of the sub
committee for the valuation Of cot
ton bills including the establishment
Of central bureau in New York city.
with the understanding that the de-
tails Of such plan would be subse-
quently worked out and considered
before giving final approval and rec
ommedation Of said plan.
1T subsequently developed that
while the plan for valuation had the
universal approval of the banks of
the country the proposition for a
central bureau met with objections
by several Of the Southern banks and
cotton interests.
todays meeting Of the commit
tee the Southern bankers were repre-
sented by Mr.. Godchau Of New Or
leans and Mr.. Haight, representing
the .Liyerpool cotton conference.
Full consideration was given to all
the objections and upon analysis they
lowing grounds:
First. That the plan would give
certain advantage to exchange buy
ers in New York, by reason Of the
fact that the central bureau would
be there located.
Second. That the plan in it's op-
Grafton would prevent the ready ne
gotiaticn, acceptance and payment of
drafts drawn against cotton ship
ments.
Third. That under the plan the
foreign buyer would not properly dis
criminate in the selection Of his
agents.
Fourth. That the plan Of notifl-
cation to the central bureau, as pro-
posed, might be construed as placing
additional responsibility upon ex-
change buying banks of genuine
ness Of bills Of lading.
ITO obviate the first objection, It
was suggested with the assent OF the
representative Of the foreign inter-
ests. that the central bureau instead
of sending acknowledge ments of each
bill Of lading, in response to notih-
cation, should give no Information to
any one concerned except only In
cases where particular bills Of lading
had been found forged or otherwise
ineffective. thus preventing the
pyramiding or accumulation of losses
The committee considered that the
change thus proposed would remove
the first objection.
AS to the second objection the in
quiry was specifically made of the
representative Of the foreign inter-
ests. whether 1t was the intention Of
the foreign bankers to refuse or de-
lay the acceptance Of drafts until they
would hear from the central bureau.
He replied that such an idea has
never been entertained that the CEN
tral bureau s not expected to receiye
an application from a European bank
or such q thing. The committee ar
rived at the conclusion that there was
no ground for the second objection
and that interior banks drafts will
as heretofore, be honored. on pre-
sentation in accordance to their terms
without regard to any work of in
Vcstigation by the central bureau.
Concerning the third objection the
committee thought that the initial
American bank could be assumed to
nave closer Information OF the re-
sponsihility of its clients and that
eVen assuming failure To properlv
discriminate I'm the selection of TIA
agents by the foreign buyer the loss
from any fraudulent Transaction IN
view of the existence Of - contraI I'm.