Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-09-04
COTTON FARMERS
ARE VICTIMS Of
1ARE RULES
Corporation Commissioner Re-
ports Injustice From False
Weight Practices.

WASHINGTON, Sept "A false
standard Of weights which inject IN
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
tions. 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-which was under
taken on complaint that American cot
ton producers were subjected to seri-
Gus loss because Of excessive deduc-
lions for tare under the regulations of
leading European markets. The pro-
ducer does not ordinarily suffer under
these rules. according to the commits
sioner, because Of the active COMPETE
ton among merchants in the purchase
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.
CempIieates 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. II this
waste does not injure the producer or
merchant or spinner. 1t 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-
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. 1t Is In this CON
nection that complication and uncer.
tsjnty Are injected into cotton sales
Tie American exporter. by the tenn,
of his invoice contract with the furetgn
BUYER mast compute the net weigh:
~ ms cotton by deducing per ,rui
from the gross weight The average
bale Of cotton, weighing 500 pounds
gross, contains about AIS pounds OF
cotton and % pounds of tare as II
comes from the producer to the ex-
porter. A deduction of per cent. un-
der the foreign tare rules. from a gross
weight Of 500 pounds. however, woulc
leave only 40 pounds net or s 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 fix n maximum allowance for
tare of SOC pounds. This Is a discrop.
ancy Of three and one-half pounds as
compared with the 30 pound invoice
deduction. and the foreign buyer calls
upon the exporter to make good that
amount