The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1911-08-24
VALUATION PLAN UNJUST.
New Orleans Cotton Exchange De
nounces Scheme.

New Orleans, Aug. 16.-Branding
the proposed plan of the Liverpool
cotton bills of lading committee to
| institute in New York clearing
house for the validation of cotton
bills of lading as "direct reflection
and insult upon those engaged in the
exporting of cotton and placing it.
self upon record as opposing the plan
in it's entirety, the New Orleans cot
ton exchange this afternoon, through
it's board Of directors, passed resolu-
tions to this effect and approved the
report of it's special committee ap-
pointed to investigate the PROPOSE
sition.
The directors also adopted resolu-
tions authorizing the president Of the
exchange to issue invitations in the
name of the exchange to all South
ern exchanges, boards of trade, bank
ers and exporters and others inter-
ested in the handling Of cotton to
meet here in joint conference, prob
ably during the annual convention
of the American Bankers associa-
ton, about November 20, for the
purpose of adopting measures for
the protection of their respective and
| mutual interests.
Willing to Cooperate.
The local exchange expressed itself
as being willing, in the future as in
the past, to cooperate if any feasible
and just plan for the protection OF
the legitimate cotton trade and the
elimination of practices contrary to
commercial morality; any feasible
plan that will not take further trib-
ute from the Southern planters. All
cotton exchanges in the United States
were urged to oppose the proposed
plan.
In the report of the special COM
mittee, made public to-day, it was
stated that Charles S. Haight, repre-
senting the Liverpool interests at a
| conference last Saturday, explained
the entire plan to the local commit
tee, but as no change from the orig
inal plan was noted he was informed
that an adverse report would be
made and the proposition opposed.
Plan Already Adopted.
''To the surprise of your commit
tee;," says the report, "Mr. Haight
thereupon informed the committee
that this matter had been practically
concluded by the Liverpool commit
tee and the New York sub-bills of
1ading committee, disregarding the
agreement to leave matters in abey-
ance until further conference with
the Southern interests, and that a
letter was being printed in II diff
ferent languages to be issued to cot
ton importers and foreign banking
interests all over the world, request
ing said cotton buyers to ask their
American sellers of cotton to comply
with the plan and to request Ameri-
can exchange buyers to have all their
documents approved as to their gen.
uineness through the central office in
New York"
Plan Too Cumbersome.
The committee, in giving reasons
for opposing the plan, reported that
the losses through Knight, Yancey &
Co. and Steele-Miller & Co. were
nothing, and consequently there was
nothing to justify the complex and
cum mbersome methods Of handling
cotton" as proposed; s'that the pro-
posed plan is an insult to those in
terested in the handling of cotton"
and that it gives to New York a de-
cided advantage in the purchase OF
documentary bills, while other cities
will be under the necessity of paying
for their bills before verification can
be obtained.
'In other words" says the report,
"the plan is drawn entirely in the in
terest of the foreign cotton buyer and
banker and the New York exchange
buyer, without regard to the inter-
ests OF the large section Of the coun-
try in which cotton is produced and
which bears the primary burden of
financing the CROP"
| Discrimination.
| Attention Is directed particularly
| to the fact that cotton alone Is Sc
lected out of the enormous quantity
of commodities exported for the vail
dation Of bills of lading, "nor is any
such plan in vogue in any other COM
mercial country. Therefore, it can
only be construed as a reflection
upon the cotton business as carried
on in the Southern States" concludes
the report.
| Tho onmnoittee recommended i'm