File No. 763.72/218

Senator Gore to the Secretary of State

My dear Mr. Secretary:

I beg to hand you herewith a telegram which I have received from the Harris Irby Cotton Company of Oklahoma City, Oklahoma, which will explain itself.

Most respectfully,

T. P. Gore
[Page 288]

[Enclosure—Telegram]

The Harris Irby Cotton Company to Senator Gore

European buyers of cotton in neutral countries will only pay for same when draft with bill [of] lading is accompanied by full war risk insurance policy. British Admiralty has ordered English underwriters to issue no war insurance on cotton to neutral countries unless the owner warrants same free of capture, seizure and detention by allies. This has not only resulted in American companies having absolute monopoly on all war insurance to neutral countries, but in consequence of their close affiliation with the English companies, all American companies have to-day announced that they will follow precedent English underwriters and refuse to insure without warranty clause unless the British Admiralty officially declare their attitude regarding seizure, capture and detention of non-contraband cargoes destined neutral. This condition means that all commerce to neutral countries will absolutely cease, not only denying America the outlet for her cotton to neutral countries but works a ruinous condition on American cotton shippers who have already entered into engagements for shipments of cotton to neutral countries. These cotton firms have already bought and paid for large quantities of cotton against these engagements and now are in position where they cannot make their shipments and get their money for same from their buyers; this means an immediately, unspeakably serious condition in consequence of engagements already made and forms an absolute estoppel to all further commerce with neutral countries. The United States War Risk Insurance Bureau was created for the purpose of obviating this condition but unfortunately this bureau [is] restricting its policy on American bottoms and American bottoms are practically unobtainable. The only possible relief now lies with you and other Southern Senators through Congress. This condition calls for instant relief as the situation is serious beyond measure. We earnestly urge that you at once introduce measure with emergency clause authorizing Government War Risk Bureau write insurance on shipments of non-contraband cargo such as cotton from America to neutral countries. This is absolutely the only relief in sight and must come quick otherwise immeasurable injustice and loss will immediately follow.

Harris Irby Cotton Company