Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-09-03
COTTON FARMERS
ARE VICTIMS Of.
TARE RULES
Corporation Commissioner Re-
ports Injustice From False
Weight Practices.

WASHINGTON. Sept. "A false
standard of weights which inject un-
certainty into practically every Ameri-
can cotton sale in the important mar
kets of Europe, resulting in serious
abuses. indefensible practices and even
fraud on the part Of cotton merchants
In this country, has been created by the
rules of foreign Gotten exported from
the United States, according to Luther
Conant, Jr.. commissioner of corpora
tons, in a report to President Taft.
The report is based upon an extern
sive investigation of cotton tare-the
allowance for bagging and ties inclos-
ing bale of cotton in order to ascer-
tain the net weight-which was under
taken on complaint that American cot
ton producers were subjected to seri-
GUS loss because of excessive deduc-
tons for tare under the regulati ons Of
leading European markets. The pro-
Queer does not ordinarily suffer under
these rules. according to the commits
sioner, because of the active competi-
ton among merchants in the purchase
OF cotton from the farmer for export
The existence of competition and its
remedial effect, however, he points out,
cannot always be relied upon. and It
is impossible to escape the conclusion
that the produce may be injured, and
sometimes Is.
CompIcatss Price Figures.
The tare rules, the report declares,
comphcate price regulations with an
unnecessary element OF chance, and in.
volve economic waste because of the
use of excessive bagging. If this
waste does not injure the producer. or
merchant or spinner, It must impose
an unnecessary burden upon the con-
sumner of cotton goods, says the report.
Commissioner Conant declares that inn
mediate action should be taken to
remedy the evils. and offers sugges-
lions for temporary and ultimate per-
manent relief.
The American producer sells his cot
ton gross weight and, as a rule, ac-
cording to the report, believes that he
makes a big profit on tare by receiv-
ing the same price for bagging that
he obtains for cotton. This is untrue,
the report says. as the evidence demon
the tare into consideration in fixing
the price he offers.
Cotton for export, on the other hand,
is sold net weight. 1t Is In this con-
nection that complication and uncer-
tainty are injected into cotton sales
The American exporter, by the terms
OF his invoice contract with the foreign
buyer, must compute the net weight
of his cotton by deducing per cent
from the gross weight The average
bale of cotton, weighing 500 pounds
gross, contains about AIS pounds OF
cotton and % pounds of tare as it
comes from the producer to the ex-
porter. A deduction of per cent, I'M
der the foreign tare rules. from a gross
weight Of 500 pounds, however, would
leave only 40 pounds net or pounds
less than the actual weight of the net
cotton the bale. In addition to that
discrepancy. the report points out, the
situation Is further complicated by the
fact that when the cotton reaches its
destination, the foreign buyer under
the contract with the American ex-
porter, has the right to demand an
actual test for tare. In this test the
rules fix a maximum allowance for
tare of 500 pounds. This is a discrep-
ancy of three and one-half pounds as
compared with the O-pound invoice
deduction. and the foreign buyer calls
{ upon the exporter TO make good that
amount