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, Jr.. commissioner Of corpora
lions, In 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-whlch 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 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 1t
Is impossible to escape the conclusion
that the produce may be injured, and
sometimes is.
CompIioates Price Figures.
The tare rules, the report declares,
compllcate price regulations with an
unnecessary element of chance. and in
volve economic waste because of the
use of excessive baggns. If this
waste does not injure the producer or
merchant or spinner, 1t must impose
an unnecessary burden upon the CON
sumer of cotton goods, says the report
Commissioner Conant declares that i'm
mediate action should be taken to
remedy the evils, and offers sugges-
tons 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
strates that the buyer Of cotton takes
the tare into consideration in fiXing
the price he offers.
Cotton for export. on the other hand
Is sold net weight. It is ia this con-
ncction that complication and uu,cr.
lainty are injected into cotton sllrs
he American exporter. 10y the toup-
Of his invoice contract with the forrrgu
bu,er must compute the net veish.
ut his cotton by deducinG 6 per cen,
from the gross weight The aVerds,
bale of cotton, weighing 500 pounds
gross. contains about AIS pounds of
cotton and % 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 gross
weight Of 500 pounds, however. woulc
leave only 470 pounds net or pounds
less than the actual weight OF the net
cotton the bale. In addition to thar
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 Ak a maximum allowance for
tare of 500 pounds. This is a discrcp.
ancy of three and ne-half pounds as
compared with the So pound Invoice
deduction. and the foreign buyer cal.
upon the exporter 10 make good that
amount