Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1912-09-03

IN ASSOC. alien EfTsr
Washington, d. c., Sept. Rules
OF foreign cotton exchanges, govern
ing tare on cotton exported from the
United States have created 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
abuse, indefensible practices, and
even fraud on the part of cotton met
chants In this country, according 10
Luther Conant, Jr., commissioner of
corporations In a report TO President
Taft, made public today.
The report Is based upon an ex-
tensiye incstigation OF cotton tare-
the allowance for bagging and ties.
enclosing a bale of cotton I'm order
to ascertain the net weight which
was undertaken on complaint that
American cotton producers We're sub
jected TO serious loss because OF ex-
cessive deductions for tare under the
regulations OF leading European
markets The producer does not or
dinarily suffer under these rules, ac-
cording 20 the Commissioner. be-
sause OF the active competition
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 II is impossible to escape the
conclusion that the producer may be
injured aud sometimes Is.
The tarc rules. the report declares,
complicate price calculations with an
unnecessary element of chance aud
involve economic waste because Of
the use of excessive bagging II this
waste does not injure the producer
or merchant Or spinner. lt must i'm
pose an unnecessary burden upon the
consumer OF cotton goods. SAYS the
report Commissioner COnant de-
clares that immediate action should
be- taken 20 remedy the evils and Of
fers suggestions for temporary and
ultimate permanent relief
The American producer sells mis-
cotton gross weight and as a rule.
according 20 the report. believes that
he makes q big profit on tare by re-
ceiying the same price for bagging
thar he obtains for cotton This Is
untrue, the report says. az the eyi-
dence demonstrates that the buyer OF
cotton takes the tare into considera-
tion In fixing the price he offers
Cotton for export on the other
hand - sold net weight u is in this
connection that complication and un-
certainty are injected into cotton
sales The American exporter. by
the terms of his invoice contract with
tla foreign buyer must compute the
net weight of his cotton by deductinr
q per cent from the gross weight
The average bale of cotton, weigh.
ing 500 pounds gross contains about
as pounds of cotton and 30 pond.
of tarp as 10 come. from the producer
to the exporter deduction of 2
per cent. under tle foreign tar,
/, rules from a gross weight of sos
pounds however would leave onll
$40 pounds uet or pounds less thar
actual weight OF tho ue. cotton DO
the bale lu addition 20 that dis
Icrepaucy the report points cut. th'
situation ls further complicated hl
the fact that when fhs cotton reach
os its destination the foreign buyer
I. under the contract with tHe Ameri
can exporter. has the right 20 Dc
mand ar actual test Tor farc d
this test. the rules f.z d maximum lI
. iOwance for tare OF anly about g..
per cent or 26is pounds on a bal
of 500 pounds This is a disCrcp
. ancy OF 3is pounds as compared wit
#, the 80 pound invoice deduction an
r the foreign buyer calls upon the ~
porter % make good that amount
The American exporter unde
these circumstances. according 20 IN,
report. faces a serious problem q
avoid conducting business az a loss
Some cotton merchants. Mr.. Conan
says. argue that these facts are thor
: oughly understood by the trade an
are adjusted in the price which IN
exporter asks for his cotton. Th
! commissioner does not entirely agre
p with this view and says that tn
practical result OF the rules has bee
that the exporter adds unnecessar
7 tare 20 his cotton.
The exporter. he says. natural