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

Every year claims for Thousands
Of dollars damage are filed against
the steamship companies by Euro
pean spfnners whose shipments Of
cotton srzfve IN bad shape.
The steamship companies are tired
Of II, and refuse longer to bear the
loss
The railroads. WIN not stand the
danagA
The bar1us WIN not
VINO wfnf
Bnmeshed in THIS seemingly hope
sess tang1e. representatives Of the
Southern railroads, the cotton buyers,
exporters and compressors, and the
bankers held a conference June and
In Atlanta,
They took mp a problem which
Gmeatens, unless solved. to hamper
hopelessly this seasons movement OF
cotton.
Here n the situation:
To Note Damage on Bifis-
~BtnnR" year after year with heavy
losses because of damage 70 ship
Faauts OF cotton. the steamship lines
recently announced that beginning
with this seasons crop bills 70 lading
wfIi include notations II cotton is not
thoroughly covered, not covered sufti-
GENTLY to retain marks. IL wet, u
stained, or h soiled.
Bales Of more than standard size
G7xb4 inches, must pay extra freight
and bales OF less than % Ia pounds
Der cubic foot density must pay an
excess charge of 81 per bale. These
rules are 70 go into effect in the ter
rftury east OF the Mississippi River
August Is.
The universal custom IN selling cot
ton for export has been 70 sell IL
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 ts given steamship
lines now propose TO make notations
OF damage on these bills. The rail-
roads thereupon refuse TO issue
through bills.
The Consequences.
Two things are necessary conSe-
ouence. with the same result, 50 far
as the exporter is concerned.
First, the railroads viii Issue a bill
simply 70 shtpside. The steamships
will make the bill from there TO des-
tination 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 70 shipside. Sec
Ond, with the rotations Of damage on
the bills, tho banks which handle
them Immediately become liable for
an unknown amount OF claims, which
possibly they must pay and later sue
10 recover from the carriers. For the
slight margin OF profit In foreign eN-
change, this risk cannot be taken.
The regulation concerning the
standard sise bale. IS another STUN
bling block. About one third OF the
cotton is in standard bales. Il 10 es-
timated The old-style gins were lar
ger. and thousands OF them are IN
use on interior plantations.
Another Conferences Called.
They can not an be changed IN two
months At the nat Of the steamship
Al ths end Of the Atlanta confer
snca, which included the freight
trRfic managers OF every important
railroad IN the South. representatives
OF nearly all the great cotton export
ing firms, OF the big cotton exchanges
change business, resolutions were
adopted calling for a meeting In Bir-
mingham. June IS. 20 which repre-
sentative OF the Maritime Association
Will be invited.
The impTacttcabilfty OF enforcing
me new rules viii be laid before the
ocean carriers and an effort made
&c have them modified.
On the other hand, the conference
fs anxious 70 improve the American
cotton bale. admittedly an expense OF
millions Of dollars yearly 70 the
American cotton trade through its
lack of protection 10 the staple.
Ultimately, stringent regulations by
the railroads and the ocean carriers
would do the South great good. but
Il Il impossible to put such regila-
lions in effect arbitrarily. and on such
short notice.