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 cotton exported from
| the United States. according to Luther
| Conant, j.. commissioner of corpora =
| tons. in report to President Taft
The report is based upon an extern
siVe investigation of cotton tare-the
allowance Tor bagging and ties enclos e
| ing bale of cotton in order to ascer-
tam the net ght-Which was under
taken on complaint that American cot
! ton producers We're subjected to seri
Gus loss because of excessive deduc-
| tons for tare under the regulations 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.
Complexities Price Figures.
The tare rules. the report declares,
complicate 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 OF spinner, it must impose
an unnecessary burden upon the con-
sumner of cotton goods, says the report
Commissioner Conant declares that i'm
mediate action should be taken to
remedy the evils, and offers sugges
t1ons for temporary and ultimate per
msnent relief.
Inc American producer sells his cot
ton gross weight and. as a rule. ac-
cording to the report, believes that he
makes big profit on tare by receiv-
|
| he obtains for cotton. This is untrue
! the report says, as the evidence demon
strates that the buyer of cotton takes
the tare into consideration in fixins
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.
! raiy
! 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 81 pounds of tare as il
comes from the producer to the ex-
| porter. A deduction of 6 per cent. un-
der the foreign tare rules. from a gross
weight of 500 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
destina ton. 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 allowances for
tare of 500 pounds. This is discrep-
ancy of three and one half pounds as
compared with the 3O-pound invoice
deduction. and the foreign buyer calls
upon the exporter to make good that
| amount
Exporter Faces Problem.
The American exporter. under these
circumstances, according to the report,
faces serious problem to avoid con-