Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-17
TIE-UP
THREATENED BY.
COTTON MEN
Conference Over New Rules for
Foreign Bills of Lading Ex-
pected to Develop Fight.

Cotton buyers. compress owners.
bankers, railroad men. and the rep
resentatives of the ocean steamship
lines meet in Birmingham Wednesday
for a conference which will attempt
TO solve one of the most knotty ques~
lions which ever has arisen regarding
the movement of the cotton crop in
the South.
The steamship lines have announced
that they will put into effect within
a month, strict regulations govern
ing the baling and marking of cotton.
They intend to make notations on
the bills af lading describing the con-
dition of the cotton-whether wet or
not, properly covered. for instance.
Their aim is to avoid the heavy
claims for damages which have been
made upon them in years past by
consignees on the other side who re-
ceived cotton in bad condition.
The railroads announce that if such
notes are put on bills of lading, they
will not issue through bills from in
terror points to destination in Eu-
rope, but will issue bills only to ship
side.
Banks Would Suffer.
The banks cannot possibly finance
the cotton crop unless through bills
are issued. On the other hand if
the through bills contain notice of
damage, the best authorities agree
that they make the banks buying
them liable for damages as parties to
the merchandise transaction. when
their real interest is only as bankers
A. P. Coles, who has made a deep
study of the question, sums it up
by saying:
why should our bank. for the
small profit there is in selling ex-
change, buy a lawsuit"
one conference already has been
held in Atlanta on the subject. at
which the steamship interests were
not represented.
In Birmingham, a desperate effort
will be made to get a compromise It
is admitted that the cotton trade of
the South loses millions yearly oy
wasteful handling of the crop; care
less bahng, second hand bagging. and
so on.
It is pointed out. though. that these
practices cannot be reformed from
the top. They must begin with the
planter. Education Of the cotton
grower will require years. and no
fiat of the steamship companies can
bring about such a change in a few
weeks.
Coles to Speak.
Mr.. Coles, vice president OF the
Central Bank and Trust Corporation,
probably will make one of the prin-
cipal arguments He has found a
decision of the Interstate Commerce
Commission which he believes covers
the case like a blanket. This decision
governs the demurrage charges on
cotton at Galveston.
In effect, it says that. while the
Commission cannot force the rail-
roads to issue through bills of lading
via Galveston, it can compel the prac-
tiCe to be stopped at all other ports
unless Galveston is so favored, while
il cannot compel through bills of lad
ing on cotton, it can stop issuance
of through bills on all other cOmmodi-
ties if cotton is not so handled. 1t can
compel, too installation of proper IA
cilities to prevent cotton being dam
aged while in transit
Mr.. Coles proposes to threaten lay
ing the case before the Interstate
Commerce Commission with a re-
quest for a parallel ruling if the mat
ter is not adjusted.
Letters from the National City
Bank of New York City, the Guar
anty Trust Company Of New York,
Blyth & Bonner, exchange brokers, /
and others who handle millions Of
dollars worth of cotton bills yearly,
express their opinion that a bin Of
Iading with notice of damage on it
viii be unbankable, and say, too, that
they believed the matter had been
settled at a conference in New York
last August.