New-York tribune., 1912-01-22
COTTON PLAN REJECTED
Southern Bankers and Shippers
Condemn Liverpool Idea.
WILL PREPARE SUBSTITUTE
Central Bureaus Supervision Of
Bills of Lading Called Re.
pugnant to Business.

Memphis, Jan. L-Representative bank.
ers, shippers and cotton dealers whose in.
terests extend throughout the cotton grow.
ing states OF the South reiterated yesterday
that the so-called Liverpool plan OF bills Of
lading valuation through the medium OF q
central bureau is ''repugnant TO sound husi-
ness principles" and refused to sanction the
plan as originally drafted at the European
bankers conference or as amended several
times as to details. Instead. a COMMITTEES
was appointed TO meet with Representatives
Of the European bankers and cotton men at
Memphis Monday to arrange. II possible
another plan.
II. Kern, chairman OF the LIVERPOOL Cot.
ton Bills OF Lading Committee; ]. Hops
Simpson. secretary of the European Bank
ers' Conference Committee, and Charles >
Haight representative in the United States
of the European cotton interests were the
only advocates of the plan at to-day's con-
ference. They explained the plan In detal'
but at the end OF their argument the South
ern cotton men were unconvinced and sflr
three hours of debate adopted resoluticEs
denourcing the proposal.
Sol Wexler, OF New orleans, gave a..
surance that II the central bureau snola
be abolished the American Bankers ~
ISOLATION, OF which he is a member. Ncaa
draft a substitute plan, from which 'as
features regarded as Objectionable woua
be eliminated, but afrording equal saie'
guards to the foreign buyer OF cotton.
In the resolutions adopted the central oa'
% AanCpnaad I'm forms fltldlU
as emphatic as in resolutions adopted a.
similar conference held at New Orleans
several months ago. The plan is describes
as an extraordinary and unique hsu'
ance" against the negligence OF European
cotton buyers in dealing with irresponsloe
persons and firms. The effect OF the pla'
Il is declared, would be TO "conhrm tn'
common carriers of cotton I'm their moe
fensible attitude of denying liability for tn'
acts Of authorized agents" The resolr
tions state:
While members OF the conference depionsss
losses entailed by fraudulent pracuces
two cotton firms In the recent past sill
although they declare I'm favor OF any any Va. Va.
render active support 10 any and AZ il,,,nr
sonable reforms In the methods OF o,iiss. ~.
and forwarding cotton, still the centids
reau plan IN question Is ntIcuN 'oieN .'-ir
as being repugnant TO sound business ~ -
ciples In that IL proposes TO invest bus ~, y
lading with a status entirely indepehos.ns,
of considerations OF the character as
solvencv OF the shipper. discriminatory ~
that Il imposes burdens and hardships w. Wy.
the cotton exporters and possible sVISS
upon the cotton producer from all OF W. w,
the producer and shipper of every o'ps o',s.
commodity Is free and futile IN thst -,
fiat OF the central bureau certifying 70 W,,s
one virtue OF genuineness OF slgnaI..r
would place irresponsible and dlsho,n1rr ,per
shippers IN a position OF vantage AZ 70 81
which they could practise multtuu.
collateral Irregularities pregnant VIZ,
greater injury to the cotton trade thah v
isolated danger OF forgery.
The remedy, it is contended lies IN "
enforcement Of more careful and discern.
mating business methods by both the es'
riers and buyers.
The resolutions absolve the Liverpoo' ~.
resentative of intention 10 reflect on the y
tesrity of Southern cotton exporters, "a.
Il is held the central bureau plan co"'s
tutes such reflection. so