New-York tribune., 1911-09-01
TABS ON COTTON BILLS
Central Bureau To Be 0pened'in
Wall Street To-day.
HARD NOW FOR FoRGERS
Conference Committee Explains
New Rules Adopted by
Roads and Banks.

The Liverpool Cotton Bills Of Lading
Conference Committee issued statement
Yesterday in regard 70 the new rules for
sste=uarding cotton bills formulated by the
committee. which have been adopted by
most of the cotton carrying railroads and
q number OF leading banks, and explaining
the working Of the central bureau or clear
ing house for bills Of laGinE. which is 20
be opened a. No 20 Wall street to-day.
The statement says that. acting upon
the general demand for reform Of some
Character following the many Irregular
ties which were common 2 few years ago
lr the issuance Of bills Of lading. the com
r5ftse has drafted an agreement providing
tna, export bills Of lsding shall he issued
against physical cotton and not against
documents the validity cf which is un-
known. as was the case in the past
Tse agreement further provides for the
estai.ljshr,crt 81 a central bureau TO which
nU or the railroads that have signed the
agreement are 20 send signed copies or
every export bill of lading issued. This IS
IN order that exchange buyers may ADVISE
this central bureau ~ the bills of lading
rassinE through their hands, which oills
can thus he checked up by. the central
hurssu against the copies in its possession
and so efrcctuanv prevent forgeries
The bills Of lading signed a. each issuing
roint on each road viii be numbered con
s4cutively throughout each cotton season
am VIII be hled in the central bureau un-
Ter the names of the roads issuing them
srd under the stations ~ which they are
fssued Cotton shippers will he asked 70
furnish their exchange BUYERS with form
letter addressed 70 the central bureau,
giving the details Of each shipment and
asking the central bureau 70 give the ex-
change BUYER anv information desired re
Elu'inC the shipment.
This letter will be passed o. intact hy
ire exchange huver n the central bureau
without in any way interfering with the
present method OF handling exchange, and
Ere central bureau will check up the ad-
vices received from the bankers, and when
s-ar the central bureau records fail 70
snow the actual shipment Of the cotton
-apreeented by bill of ladinz received BY
on exchange buyer immediate Steps will be
taken 70 verify the shipment or expose the
for-srv.
The general bureau viii also check back
with the auditors Of the roads the advices
received from the various shipping agents
viii receive from ocean carriers immediate
ADVICE as - all cotton loaded undor through
exror- bills of lading Under this system
3. -nl he practically impossible for ? for
ger 70 escape detection
The consecutive numbering OF bills or
lsding AZ each issuing point would give
the central bureau an almost sure method
of detecting fraud. 70 saw nothing Of the
% -rad
he ISSUED without duplicating the number
of some valid bill II IS safe 20 say tnat
under most circumstances a forgery would
ne detected within forty-eisht hours after
the central bureau had been advised that
p banker had received a bill OF ladlns
which actually was 2 forgery.
The committee saws with regard 20 re-
ro~ts that bankers and railroads who re-
fuse 70 sign the agreement will be black
listed by foreign cotton buyers that II IS
not the desire Of the committee or or
Frrcaean interests in general ~ blacklist
any ane connected with the cotton trade.
bur that European cotton buyers will ask,
and are to-day asking. their sellers on this
side 70 cooperate in the new rules for the
prevention OF forgeries.
The American shippers y adds. will un-
doubtsdly ask their eNchange buyers ~
Join this cooperation by applying 70 the
central bureau. and European buyers viii
make a similar request Every effort is
he.nc made. II saws. 70 explain the ad-
vsrta-es of the new system % American
exchange buyers for the very purpose Of
avoiding any friction between them and
European interests and IT is believed that
ne American exchange buyers will he glad
. CO 1rerate both for their own protection
er4 for the protection OF their friendly
-e=rondents abroad
While the European cotton buyers viii
undoubtedly wish 70 have their documents
pass through the hands of exchange buy
ers who viii cooperate for their general
protection against forgeries. there is no
disposition 70 force upon any one plan
which Is not fair and advantageous TO