The Birmingham age-herald., 1924-09-05
NO OTHER CITIES
 NAMED IN PLAN
State Laws Makes Con-
 sideration Of Ports x, Impractical
EXCHANGE VOTE
 WILL BE TAKEN
Result Of Ballot Will Determine Fate Of Future Contract
 Proposal
lBy Associated Press. )

NEW YORK, Sept. 4.-De- claring that delivery of cot ton at southern ports against New York future contracts IS economically sound in princi- ple, would undoubtedly tend to keep quotations more in harmony with spot values and would be practical at numer- ous cities, but for adverse state laws, the special south- ern warehouse committee on the New York Cotton exchange in a report made public today unanimously recommends the extension of delivery privi- leges to New Orleans. At present all future contracts on the New York Cotton exchange call for delivery at New York City only.
 The committee, which has studied the question of southern deliveries for more thun year, states 1t would nave ..s,o,,, ...o.r s,snded extending delivery priv ileses to Norfolk, Savannah, Galveston md Houstoil. but for restrictions m sheiv sfnte laws. A condensed version nf fhe comfnfttee's report will be mailed < tc tie members Of the exchange If n ,na iority yote iri favor of the recom- mendations they will be adopted by the exchange.
 The committee recommends; . Committee Recommendations :
 New Orleuns deliveries with an d. lnwance to the receiver equal to or fir;aI eoastwise freight rate in effect on date notices are issued, with tend ers limited on one 9contract to three contagious grades. .s
 Separate warehouse receipts and classification certificate for each bale.
 Messers. Clayton and Harriss' plan for safeguarding of southern warehouse receipts. :..5
 The Clayton-H Harrfss plan referred to requires CD warehouses at NeT Orleans to come under ,ne .eueral vvarehouse act before receiving licenses e,o,, fine New York Cotton Exchange; (21 that no warehouse be licensed which carries an insurance rate higher fhan that known as a rating; tSl that warehouses so licensed be required to charge a uniform storage and Handling rate on certified cotton; (4) that such warehouses be required to in- sure the validity of their receipts GOV erinr certified cotton under policy and with company approved by the New York Cotton Exchange.
 Three members of the committee ,conferred with the feder. trade com mission last November and learned that fhe proposals of the committee In part were favored in principle by the conn mission.
 State Laws Restrictive
 In regard to extending warehouse de- liyeries to Norfolk, Savannah, Calves ion and Houston, Henry W. Taft, coun- sai for the exchange, advised the com ,oittee that "in view of the fact that inc states of Georgia and Texas have nassed laws limiting and restricting contracts for future delivery of cot ion. it might be difficult for khe New York Cotton Exchange to obtain per mission to carry on in these states the business of inspecting cotton for deliv- cry under such contracts.
 In further explanation of why It does not at this time recommend the extension of deliveries to these four ports, the committee says:
 'aThe important barrier appears not in the physical handling of the cotton or collateral but in the financial uncer- tainty involved where co--tracts mlght ultimately be subject to adjudication in accordance with various state laws instead of in accordance with the laws of the state of New York as at pres ent."
 Members of the exchange, the com mittee points out, would be confronted not only with the uncertainty of being able to legally enforce their contracts in such states, but would face the added danger that in some instances repayment of margin or hquidated losses previously paid by clients might be reclaimed.