Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-08
UGLY PROBLEM
FACES SOUTH'S
COTTON TRADE
Ocean Carriers New Regulations,
If Enforced, Will Hamper Hope
IessIy Coming Crop Movement,
BY N. r. ROSE.

Every year claims for thousands
Of dollars damage are filed against
the steamship companies by Euro
pean spinners whose shipments Of
cotton arrive in bad shape.
The steamship companies are tired
Of It, end refuse longer to bear the
loss.
The railroads WIN not stand the
damage.
The banks win not
Who VIII?
Bnmesled in this seemingly hope
less tangle. representatives OF the
Southern railroads, the cotton buyers,
exporters and compressors. and the
bankers held a conference June 4 and
in Atlanta
They took up a problem which
threatens, unless solved, to hamper
hopelessly this seasons movement OF
cotton.
Hereass the situation:
To Note Damage on Bills.
"StunE7 year after year with heavy
losses because Of damage TO ship
ments Of cotton, the steamship lines
recently announced that beginning
with this seasons crop bills 70 ladiug
will include notations II cotton is not
thoroughly covered, not covered sutil-
ciently TO retain marks, Is wet Is
stained. OF IS soiled.
Bales Of more than standard size,
27x54 inches, must pay extra freight
and bales OF less thnn % IL pounds
fger cubic foot density must pay an
excess charge OF 81 per bale. These
rules are to go into effect IN the ter
ritory east Of the Mississippi River
August 10.
The universal custom in selling cot
ton for export has been 10 sell II
on a through bin Of lading. The
banks handle these bills, and through
foreign exchange arrangements get
their money Immediately.
Cotton received IN good condition
by the railroads is given steamship
lines now propose 10 make notations
OF damage on these bills The rail-
roads thereupon refuse to issue
through bills.
The Consequences.
Two things arc necessary conse-
duence, with the same result so far
as the exporter is concerned.
First, the railroads win issue bu
simply 10 shipside The steamships
win make the bin from there To des-
tinatfon. This win tie up the money
advanced by the banks on the bills
OF lading so long that they can not
stand the drain. for cotton may be
three weeks en- route TO shipside. Sec
ond. with the notatiOnE OF damage on
the bills, the banks which handle
them Immediately become liable for
an unknown amount OF claims, which
possibly they must pay, and later sue
TO recover from the carriers. For the
slight margin OF profit In foreign eN-
change, this risk cannot be taken.
The regulation concerning the
standard Fize bale. a. another STUN
bling block. About one-third Of the
cotton Is in standard bales, Il is cs-
timated. The old-style gins were lar
ger and thousands Of them are Tn
use on interior plantations.
Another Conference Called.
They can not an be changed I'm two
months az the fat Of the steamship
companies
At the end OF the Atlanta confer.
ence. which included the freight
traffic managers Of every important
railroad IN the South. representative
OF nearly all the great cotton export
ing firms, Of the big cotton exchanges
anu AfAE NhlAhN ANthA a ANttAhAA -
change business, resolutions were
adopted calling for a meeting in Bir-
mingham, june IS 20 which repre-.
sentative OF the Maritime Association
win be invited
The impraCticability Of enforcinl
the new rules viii be laid before tbs
ocean carriers and an EFFORT mad,
20 have them modified.
On the other hand. the confereuc,
Is anxious 10 improve the American
cotton bale, admittedly an expense o
millions Of dollars yearly 20 TN
American cotton trade through ir
lack OF protection TO the staple.
Ultimately, stringent regulations by
the railroads and the ocean carrier
would do the South great good. bu
Il Is impossible 90 put such reEula
tions in effect arbitrarily, and on sucl
short notice.
MINING STOCKS