contention of the opponents at the recent hearing. Their opposition could never be allayed except through the incorporation of a provision like section 7 of H. R. 5080.

Section 8.-This is entirely new and provides that the rules shall not abrogate or amend various existing statutes.

Section 9.-This section, which is entirely new, guards against the danger of the carrier discriminating between shippers in the issuance of bills of lading more favorable than provided for by the rules. Section 5 of the rules gives the carrier the privilege of doing this by surrendering its rights and immunities granted under the rules. Section 9 declares any such discrimination to be unlawful and to be punishable as per the general penalty section (sec. 13). At the hearing before the Committee on Merchant Marine, as well as the one before the Shipping Board, the thought was quite freely expressed that such discrimination should by all means be guarded against.

Section 10.-The wording used is that of the British bill. Although not contained in the Brussels Rules the select committee of Parliament saw fit to insert the provision, because of the strong complaints raised by British coal interests. The section only affects bulk cargo, and there is every reason to believe that it is entirely agreeable to American interests. Since the British provide for such treatment to bulk cargo, it is desirable that we should do likewise.

Section 11.-This section excludes our coastwise trade from the operation of the rules. Through an oversight the wording of the section in H. R. 5080 does not make the rules applicable to the Philippine trade. The last sentence of the section should read: "Nothing in this act shall be held to apply to contracts of carriage of goods by sea between any port of the United States or its possessions included in the coastwise trade and any other port of the United States and its possessions included in coastwise trade."

Section 12.-This section provides for a penalty. The British bill does not penalize the nonobservance of the rules. The general concensus of the opponents of the rules, however, was to the effect that a penalty ought to be provided.

Section 13.-This new section provides (a) that the bill takes effect 90 days after date of approval; (b) that contracts entered into prior to this date should be protected, as they necessarily must be; and (c) prevents the shrewd issuance of contracts for long periods of time, such as 5 or 10 years, by applying a one-year limitation. During the shipping investigation leading up to the shipping act of 1916, any number of instances presented themselves where certain prominent shippers had entered into long-term contracts with certain steamship companies guaranteeing certain favored conditions to particular shippers in question. Under such a practice it is easily possible that long-term contracts might be speedily entered into just before the rules go into effect in the United States, and such contracts might constitute a real discrimination as compared with the treatment accorded smaller shippers with respect to bills of lading.

OBJECTIONS BY AMERICAN SHIPPERS

At the present time no action has been taken on any of the bills introduced, the chief difficulty seeming to lie in convincing those who

believe in the advantages of the Harter Act of 1893 and the "act to limit the liability of shipowner and for other purposes" of 1851 that the provisions of the Brussels conference are inclusive of the regulations as prescribed by these two acts. In fact, section 7 of the proposed bill specifically includes both of the above acts. The chief objections are set forth in the following memorandum from the Institute of American Meat Packers:

Generally speaking, we feel that the provisions of the Edmonds bill (H. R. 5080, introduced January 9, 1924) are, in several particulars, a considerable improvement over the Brussels Rules themselves as they now stand. We particularly approve of paragraph 4, section 4, with regard to deviation. We also approve most emphatically the provisions of section 9 which would prevent discrimination between competing shippers. We also approve most heartily of the provisions of the Edmonds bill, which tie up existing American statutes definitely with the provisions of the Brussels Rules.

In our opinion, both the provisions of the Brussels Rules themselves and of the Edmonds bill with regard to notice of loss or damage need considerable revising. Any claim clause should allow a reasonable time for the filing of a .claim after the goods come into the possession of the consignee. Under the present wording of the rules the consignee would be required to give notice of loss or damage, in writing, before or at the time of the removal of the goods. If the loss is not apparent, three days are allowed for the written notice. It appears to us that the rule approved by the Interstate Commerce Commission with regard to loss and damage claims might readily be incorporated in the Edmonds bill. The commission's rule requires notice at the time of delivery only when loss or damage is apparent. If not apparent the consignee has 30 days in which to file a written notice. Moreover, a notation on the receipt constitutes the required written notice under the commission's rule. In our opinion, the consignee should have at least seven days in which to file notice if the damage is apparent, and if the damage is concealed he should have at least 60 days, exclusive of the time the goods may have been held in customs or in Government authority. Quite obviously, more time should be allowed with shipments that are made overseas than is allowed with shipments within the borders of the United States.

We also feel that clarifying language should be employed to define the meaning of the word "unit" in the section (art. 4, sec. 5) covering the measure of damages. It seems to us that the interest of both shippers and carriers would be conserved if they all knew what was meant by the word "unit": whether the term means a package, barrel, bale, or whether the word means an entire shipment. Under the existing language the carrier might select his own interpretation and pay on either a "package" or a "unit." Attention is directed to the fact that the language in the rules and the bill reads per package or unit."

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We feel also very strongly that the carrier should not be relieved from liability in labor troubles brought about by himself. Under the existing language in both rules and the bill a carrier might lock out a single cabin boy and thus exempt himself from all sorts of responsibilities.

The above constitute the principal objections we have at this time, but it should not be understood that these are all of our objections. There are various others.

LIMITED LIABILITY ACT

The act to limit the liability of shipowners and for other purposes, passed on March 3, 1851, was the first act to be passed limiting the liability of shipowners. While the scope of this act was broadened by the Harter Act in 1893, many provisions of the former act are in force at the present time. A copy of this act is as follows:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That no owner or owners of any ship or vessel shall be subject or liable to answer for or make good to any one or more person or persons any loss or damage which may happen to any goods or merchandise whatsoever, which shall be shipped, taken in, or put on board

any such ship or vessel, by reason or by means of any fire happening to or on board the said ship or vessel, unless such fire is caused by the design or neglect of such owner or owners: Provided, That nothing in this act contained shall prevent the parties from making such contract as they please, extending or limiting the liability of shipowners.

SEC. 2. That if any shipper or shippers of platina, gold, gold dust, silver, bullion, or other precious metals, coins, jewelry, bills of any bank or public body, diamonds or other precious stones, shall lade the same on board of any ship or vessel, without, at the time of such lading, giving to the master, agent, owner or owners of the ship or vessel receiving the same, a note in writing of the true character and value thereof, and have the same entered on the bill of lading therefor, the master and owner or owners of the said vessel shall not be liable, as carriers thereof, in any form or manner. Nor shall any such master or owners be liable for any such valuable goods beyond the value and according to the character thereof so notified and entered.

SEC. 3. That the liability of the owners of any ship or vessel, for any embezzlement, loss, or destruction, by the master, officers, mariners, passengers, or any other person or persons, of any property, goods, or merchandise, shipped or put on board of such ship or vessel, or for any loss, damage, or injury by collision, or for any act, matter, or thing, loss, damage, or forfeiture, done, occasioned, or incurred, without the privity or knowledge of such owner or owners, shall in no case exceed the amount or value of the interest of such owner or owners respectively, in such ship or vessel, and her freight then pending.

SEC. 4. That if any such embezzlement, loss, or destruction, shall be suffered by several freighters or owners of goods, wares, or merchandise, or any property whatever, on the same voyage, and the whole value of the ship or vessel, and her freight for the voyage, shall not be sufficient to make compensation to each of them, they shall receive compensation from the owner or owners of the ship or vessel, in proportion to their respective losses; and for that purpose the said freighters and owners of the property, and the owner or owners of the ship or vessel, or any of them, may take the appropriate proceedings in any court, for the purpose of apportioning the sum for which the owner or owners of the ship or vessel may be liable amongst the parties entitled thereto. And it shall be deemed a sufficient compliance with the requirements of this act, on the part of such owner or owners, if he or they shall transfer his or their interest in such vessel and freight, for the benefit of such claimants, to a trustee, to be appointed by any court of competent jurisdiction, to act as such trustee for the person or persons who may prove to be legally entitled thereto, from and after which transfer, all claims and proceedings against the owner or owners shall cease.

SEC. 5. That the charterer or charterers of any ship or vessel, in case be or they shall man, v'ctual, and navigate such vessel at his or their own expense, or by his or their own procurement, shall be deemed the owner or owners of such vessel within the meaning of this act; and such ship or vessel when so chartered, shall be liable in the same manner as if navigated by the owner or owners thereof.

SEC. 6. That nothing in the preceding sections shall be construed to take away or affect the remedy to which any party may be entitled, against the master, officers, or mariners, for or on account of any embezzlement, injury, loss, or destruction of goods, wares, merchandise, or other property, put on board any ship or vessel, or on account of any negligence, fraud, or other malversation of such master, officers, or mariners, respectively, nor shall anything herein contained lessen or take away any responsibility to which any master or mariner of any ship or vessel may now by law be liable, notwithstand ng such master or mariner may be an owner or part owner of the ship or vessel.

SEC. 7. That any person or persons shipping oil of vitriol, unslacked lime, inflammable matches, or gunpowder, in a ship or vessel taking cargo for divers persons on freight, without delivering at the time of shipment a note in writing expressing the nature and character of such merchandise to the master, mate, officer, or person in charge of the lading of the ship or vessel, shall forfeit to the United States one thousand dollars.

This act shall not apply to owner or owners of any canal boat, barge, or lighter, or to any vessel of any description whatsoever used in rivers or inland navigation.

Approved, March 3, 1851.

HARTER ACT

This act, known as "An act relating to navigation of vessels, bills of lading, and to certain obligations, duties, and rights in connection with the carriage of properties," and commonly called the Harter Act, was passed by Congress on February 13, 1893. This act for the first time established "freedom of contract." Some of the provisions of the act are:

SECTION 1. It shall not be lawful for the manager, agent, master, or owner of any vessel transporting merchandise or property from or between ports of the United States and foreign ports to insert in any bill of lading or shipping document any clause, covenant, or agreement whereby it, he, or they shall be relieved from the liability for loss or damage arising from negligence, fault, or failure in proper lading, stowage, custody, care, or proper delivery of any and all lawful merchandise or property committed to its or their charge. Any and all words or clauses of such import inserted in bills of lading or shipping receipts shall be null and void and of no effect.

SEC. 2. It shall not be lawful for any vessel transporting merchandise or, property from or between ports of the United States of America and foreign ports, her owner, master, agent, or manager to insert in any bill of lading or shipping document any covenant or agreement whereby the obligations of the owner or owners of said vessel to exercise due diligence, properly equip, man, provision, and outfit said vessel, and to make said vessel seaworthy and capable of performing her intended voyage, or whereby the obligations of the master, officers, agents, or servants to carefully handle and stow her cargo and to care for and properly deliver same, shall in any wise be lessened, weakened, or avoided.

SEC. 3. If the owner of any vessel transporting merchandise or property to or from any port in the United States of America shall exercise due diligence to make the said vessel in all respects seaworthy and properly manned, equipped, and supplied, neither the vessel, or owners, agent, or charterers shall become or be held responsible for damage or loss resulting from faults or errors in navigation or in the management of said vessel, nor shall the vessel, her owner or owners, charterers, agent, or master, be held liable for losses arising from dangers of the sea or other navigable waters, acts of God or public enemies, or the inherent defect, quality, or vice of the thing carried, or from insufficiency of package, or seizure under legal process, or for loss resulting from any act or omission of the shipper or owner of the goods, his agent or representative, or from saving or attempting to save life or property at sea, or from any deviation in rendering such service.

SEC. 4. It shall be the duty of the owner or owners, masters, or agent of any vessel transporting merchandise or property from or between ports of the United States and foreign ports to issue to shippers of any lawful merchandise a bill of lading, or shipping document, stating, among other things, the marks necessary for identification, number of packages, or quantity, stating whether it be carrier's or shipper's weight, and apparent order or condition of such merchandise or property delivered to and received by the owner, master, or agent of the vessel for transportation, and such document shall be prima facie evidence of the receipt of the merchandise therein described.

SEC. 5. For a violation of any of the provisions of this act the agent, owner, or master of the vessel guilty of such violation, and who refuses to issue on demand the bill of lading herein provided for, shall be liable to a fine not exceeding two thousand dollars. The amount of the fine and costs for such violation shall be a lien upon the vessel, whose agent, owner, or master is guilty of such violation, and such vessel may be libeled therefor in any district court of the United States, within whose jurisdiction the vessel may be found. One-half of such penalty shall go to the party injured by such violation and the remainder to the Government of the United States.

SEC. 6. This act shall not be held to modify or repeal sections forty-two hundred and eighty-one, forty-two hundred and eighty-two, and forty-two hundred and eighty-three of the Revised Statutes of the United States, or any other statute defining the liability of vessels, their owners, or representatives. SEC. 7. Sections one and four of this act shall not apply to the transportation of live animals.

APPENDIX

CONTRACT TERMS AND CONDITIONS, UNIFORM DOMESTIC BILL OF LADING

SECTION I.-Extent of carrier's liability

(a) The carrier or party in possession of any of the property herein described shall be liable as at common law for any loss thereof or damage thereto, except as hereinafter provided.

(b) No carrier or party in possession of all or any of the property herein described shall be liable for any loss thereto or damage thereto or delay caused by the act of God, the public enemy, the authority of law, or the act of default of the shipper or owner, or for natural shrinkage. The carrier's liability shall be that of warehouseman, only, for loss, damage, or delay caused by fire occurring after the expiration of the free time allowed by tariffs lawfully on file (such free time to be computed as therein provided) after notice of the arrival of the property at destination or at the port of export (if intended for export) has been duly sent or given, and after placement of the property for delivery at destination, or tender of delivery of the property to the party entitled to receive it, has been made. Except in case of negligence of the carrier or party in possession (and the burden to prove freedom from such negligence shall be on the carrier or party in possession), the carrier or party in possession shall not be liable for loss, damage, or delay occurring while the property is stopped and held in transit upon the request of the shipper, owner, or party entitled to make such request, or resulting from a defect or vice in the property, or for country damage to cotton, or from riots or strikes.

(c) In case of quarantine the property may be discharged at risk and expense of owners into quarantine depot or elsewhere, as required by quarantine regullations or authorities, or for the carrier's dispatch at nearest available point in carrier's judgment, and in any such case carrier's responsibility, shall cease when property is so discharged, or property may be returned by carrier at owner's expense to shipping point, earning freight both ways. Quarantine expenses of whatever nature or kind upon or in respect to property shall be borne by the owners of the property or be a lien theron. The carrier shall not be liable for loss or damage occasioned by fumigation or disinfection though the same may have been done by carrier's officers, agents, or employees, or other acts required or done by quarantine regulations or authorities even nor for detention, loss, or damage of any kind occasioned by quarantine, or the enforcement thereof. No carrier shall be liable, except in case of negligence, for any mistake for inaccuracy in any information furnished by the carrier, its agents, or officers, as to quarantine laws or regulations. The shipper shall hold the carriers harmless from any expense they may incur, or damages they may be required to pay, by reason of the introduction of the property covered by this contract into any place against the quarantine laws or regulations in effect at such place.

SECTION II.-Transport of freight, claims for loss or damage

(a) No carrier is bound to transport said property by any particular train or vessel, or in time for any particular market or otherwise than with reasonable dispatch. Every carrier shall have the right in case of physical necessity to forward said property by any carrier or route between the point of shipment and the point of destination. In all cases not prohibited by law, where a lower value than has been represented in writing by the shipper or has been agreed upon in writing as the released value of the property as determined by the classification or tariffs upon which the rate is based, such lower value plus freight charges if paid shall be the maximum amount to be recovered, whether or not such loss or damage occurs from negligence.

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