The Washington herald., 1921-08-12
TO INSPECT and
CERTIFY COTTON
New Company Organized TO
Guard Insurance Firms
And Banks.

ATLANTA. Ga, Aug. ll.-Fire in
sTrance companies throughout the
country, particularly those operal-
lag in the South. will be interested
TO learn of the incorporation of the
otton Certificating and Inspection
Company, with headquarters at IS
Ivy street. this city. F., M. Inman,
oi lnman, Howard and Company, is
pt esident of the new company and
= J. Williamson, of J. J. Williamson
'rd Company, is vice president. The
mpanies named are two Of the
largest cotton dealers in the South
both with headquarters at Atlanta.
Haynes McFadden, editor Of The
Southern Banker. published at At
lGnta, is treasurer.
II is the aim Of the Cotton Certi-
floating and Inspection Company to
render service to banks and insur-
ance companies for their mutual
protection against fraud. Approx
Inately $50 trained cotton men. ac-
cessible 10 all points In Georgia
and adjacent territory on immediate
rotice, will represent the company
IN tagging, weighing and sampling
tie cotton of its clients. Samples
from the bales will be sent to the
Atlanta headquarters to be graded
by expert classers. Each bale in
Spected will be certificated and
sealed with an irremovable fire
I.'oof seal bearing serial number.
ny which the cotton may be identi-
flee at any time. and by the same
rIeRns the cotton ties may be identi-
tied after fire.
In the opinion of bankers and
underwriters such a service has
been long needed The company IS
prepared TO receive cotton for banks
ard insurance companies, 10 look
after shipments or sales or make
examination in case of fire: in fact,
;C offer any service that is neces-
AIRY to serve the interests of its
i ents as regards their cotton
oans and the value of cotton in
ured or destroyed by fire
Insurance companies on cotton
i.e. are often confronted with
C,aims for much higher damage
CL.y guarantee they have as TO the
sde of cotton destroyed is the
S atement Of the owner. With the
'tton certified and sealed under
company's plan IL is possible at
sly time Cor them 10 secure a true
record Of the actual grades and
weights of the burned cotton. This
service will be available to the in
su-ance companies al an annual
barge or TO cover specific fires at
| certain fee.
The officials Of the company COM
rise men = lifelong experience in
!he cotton business, who are also
thoroughly familiar with warehouse
ing and shipping methods through
ont the cotton belt. The personnel
% the cotton business in the South
is also well known to them, so that
the selection of competent men for
:ield work will at all times be di-
~ected by -~--ienced cotton eX-
ecutiVes.
1t is claimed that the company
service will largely eliminate tn"
II oral hazard which often develops
m the fact of a marked decline ir
the value Of cotton. as we'll as stop
frauds such as were perpetrated
during tie past year. wherein Ger
lain cotton dealers. facing financial
rim on account of the decrease IL
the price of cotton. secured heavy
loans from banks, offering as col
lateral their warehouse receipts
supposedly on cotton" On inspeC-
iion. however. the material repro
s.nted as cotton" proved to be
low-grade linters or cotton waste
orth only a fraction of the vaiue
Of regular cotton. This material
as also insured At regular cotton
,alJes. At present. the new com
rinys is trying to impress upon
banks making loans on cotton the
necessity of requiring from their
clients a certificate from the Cotton
Certificsting and Inspection Com
paIy.