The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1912-09-03
FOREIGN COTTON
EXCHANGE RULES
HURT EXPORTERS
Concluded from Page One.)

with this view and says that the
practical result Of the rules has been
that the exporter adds unnecessary
tare TO his cotton.
THE exporter" he says, ''natur-
ally adds tare up to the amount al
lowed by the rules (roughly 26 X
pounds He does this by patch
ing that is placing strip-bagging
on the bale a small part of such
patching is usually necessary tc
cover sample holes However, since
the exporter in making out his in
voice must deduct & per cent. he fire.
quently goes further and adds tare
up to at least per cent Of the total
weight of the bales; sometimes he
adds even more.
obviously, if the exporter makes
a complete adjustment in the price,
and also adjusts By adding tare. he
makes a profit on such added tare.
II. however, complete adjustment is
not made in the price, this addition
Of tare becomes simply means Of
protection against loss, although in
the trade it IS usually spoken Of az
a profit on patching
Granting that the price of cot
ton is in no way affected by the 8
per cent rule, 1t is nevertheless
highly Objectionable. 1t results in
changing the gross weight of the
bale and thus introduces an avoid
able element of chance, both as tc
the actual weight of cotton to be
paid for and as to price"
AS a result Of this per cent rule
the commission ar estimates that at
least SO per cent OF American expor-
tation OF cotton are over-tared and
that all insignificant proportion OF
the remainder is nnder-tared. 1t is
this use of unnecessary tare, says the
report. that injects uncertainty and
possible fraud into the cotton bus
mess.
Makes False Standard.
This uncertainty" adds the re.
port. Strikes at the basic factor OF
every transaction, namely, tht
amount OF the commodity actually
sold Ii in effect establishes a false
standard Of weights with the newt
ably unfortunate consequences o.
such condition. 1t thus gives al
advantage to a skilled class of spec
falists who best understand the com
plicated details Of the business, Will
a corresponding disadvantage to the
less expert. 1t is not sufficient t.
say that the competition anon:
| these skilled classes often force
! them to turn over the benefit Of thi!
false measure to the producer. |.
is not seriously contended that thi;
| Is always so, and there Is thus eveI
present the open door to fraud
There is always the invitation t.
| cotton merchants to adopt improper
practices. and there is thus entieet
into the trade a class Of men who
E1ring discredit upon honest mer.
chants This is not only theoret
ically so, but it Is actually 50. Buy
ers Of cotton both in this country
| and abroad are constantly finding
| themselves involved In transactions
whore shippers have taken advan
tage OF these opportunities to de
fraud.
The ideal remedy for all these
evils, Mr.. Conant concludes. Is the
Standardization of tare to be put or
4 bale of cotton by making it a def
mite or readily ascertainable amount
so that the net weight may be de-
termined without controversy Of
test The present careless and ir
regular methods of covering cotton
| If the evils are allowed to 90 uncor
rected, he declares, seem likely t
| invite legislation.
Would Modify Contract.
| Pending the adoption of thor
ough remedy the commissioner re
ieves substantial benefits will ae
3rue by modifying the 6 per cent OF
'ome other percentage more aerur
ately representing the amount o
covering actually necessary to pFo
'ect the cotton, The requirement.
Of the contract, he says, should GER
tainly be identical with the allow
lnce established by the rules unde'
an actual test.
There would be a great saving, Thu
| eport says, il the cotton c9uld b.
Impressed at the gin. Under tA'
present practice the staple is pressed
N thn Gin and latar cofanrpsspd II