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STATEMENT OF GEORGE O. GRIFFITH, NATIONAL INDUSTRIAL TRAFFIC LEAGUE

Mr. GRIFFITH. Mr. Chairman, I am here on behalf of the National Industrial Traffic League. Mr. Belnap has stated the position of the league and there is not anything further for me to add, other than his statement has had the consideration of the committee of the league, and the league as a whole, and has its endorsement.

The CHAIRMAN. Thank you very much. Now, Mr. Frieser, do you wish to make a statement?

Mr. FRIESER (Chief, Traffic Division, Shipping Board Bureau). I am just here as an observer. I was not directed to make any statement.

The CHAIRMAN. How about you, Mr. Conway?

Mr. CONWAY (Office of Solicitor, Department of Commerce). I am in the same position as Mr. Frieser.

The CHAIRMAN. With the exception of Mr. Loring, of Pennsyl vania, who may file a brief if he desires, that concludes the list of witnesses I have.

STATEMENT OF A. B. BARBER-Resumed

Mr. BARBER. May I make a further statement on two points, on behalf of the Conference on Uniform Ocean Bills of Lading?

The conference, at a meeting of representatives just before the Senate hearing, considered the question which was brought up here by Mr. Nunnally and, after recognizing the position of Mr. Englar and his associates (Mr. Nunnally representing the same interests), the representatives of the conference at that time voted that, in their opinion, that matter should not be introduced in this legislation.

I simply wanted to record the fact that that action was taken by the representatives of the conference preceding the Senate hearing. The CHAIRMAN. That is primarily a matter between the underwriters and the shipowners anyhow, is it not?

Mr. BARBER. Yes, sir. The attitude of the members of our conference was that it was a private fight that we did not want to get into.

The other point, Mr. Chairman, is one which has not been formerly before the Conference on Uniform Ocean Bills of Lading, but which I am confident presents the judgment of that group, and in fact formed the basis of their discussion of this question of deviation, and I think a great deal of the difficulty which has existed in regard to that question will be dissipated if in this committee's report to the House of Representatives on this question it could be made clear that the word "deviation" as used in this bill does not mean deviation from some customary route of the trade. What it means in this bill, as we understand it, is a departure from the contract voyage as set forth in the bill of lading-a very important difference. A good many people have been apprehensive about the possible significance of this proviso attached to the deviation clause, because they have assumed it would prevent a ship from making a deviation from some particular customary route.

The CHAIRMAN. But the customary route might carry them out a long distance; as some gentleman said, it might carry them to China, might it not?

Mr. BARBER. Yes, sir.

The CHAIRMAN. But that would not be the way you understand it? Mr. BARBER. I am confident the understanding on the part of our conferees has been that the word "deviation" should mean departure from the contract voyage as stated in the bill of lading. I have not had an opportunity to consult the members of the conference on that, except the two or three I have talked to here, and if they have any difference of opinion they could probably express themselves right now; but I feel justified in expressing to the committee that understanding of ours with respect to the meaning of that term.

The CHAIRMAN. But they would not represent all those who have been consulted about this bill, as it is prepared, as to the language of

this bill.

Mr. BARBER. No, sir.

The CHAIRMAN. I know that deviation clause has been a source of considerable controversy in the past, and is apt to defeat this

measure.

Mr. BARBER. I am sure the gentlemen here really represent those who have been most actively interested in this matter from the beginning, with the exception of Mr. Draper, because I have discussed this question of the meaning of deviation with him.

We want to thank you very much for according a hearing to this long list.

The CHAIRMAN. Let me say that any briefs or anything which are desired to be filed should be filed at a very early date. There are some amendments that have been suggested by the Department of Commerce and, when the hearings are available, you can see them, or you can see them in the office of the clerk, and the correspondence.

They are not very many. As a matter of fact, the Department of Commerce say they would rather see the bill passed without those amendments than to have the bill imperiled by a long controversy over those amendments.

If there is no one else who wants to be heard, the hearings are closed.

(The committee thereupon adjourned subject to the call of the chairman.)

APPENDIX

MISCELLANEOUS CORRESPONDENCE RECEIVED BY THE COMMITTEE

THE NATIONAL FEDERATION OF TEXTILES, INC.,
New York, N. Y., January 28, 1936.

Hon. SCHUYLER O. BLAND,

Chairman Committee on Merchant Marine and Fisheries,

House Office Building, Washington, D. C.

DEAR SIR: The National Federation of Textiles, Inc., membership of which is composed of manufacturers of silk and rayon fabrics and importers of quantities of raw silk, wishes to record its approval of S. 1152 relating to the provisions of ocean bills of lading.

Very truly yours,

Hon. SCHUYLER O. BLAND,

A. W. MCCREADY,
Legislative Bureau.

OKLAHOMA CITY, OKLA., January 20, 1936.

Chairman Committee on Merchant Marine, Fisheries, and Radio,

House Office Building, Washington, D. C. HONORABLE SIR: A bill sponsored by you (S. 1152) seeks the enactment of The Hague rules insofar as it affects shipments forwarded from points in the United States for export to foreign countries.

This company does some export business in Cuba, Puerto Rico, and Central America; consequently, we are in favor of the changes being made as proposed in your bill. It is sincerely hoped that the present session of Congress will take favorable action upon the bill sponsored by you (S. 1152).

Yours very truly,

OKLAHOMA CITY MILL & ELEVATOR Co., By R. M. STEIN, Traffic Manager.

LOUISVILLE, KY., January 13, 1936.

Hon. SCHUYLER O. BLAND,

Chairman, Committee on Merchant Marine, Fisheries, and Radio,
House Office Building, Washington, D. C.

DEAR MR. BLAND: We would appreciate your support of the White bill (S. 1152), which we understand puts the Hague rules into effect in the United States, and gives marine shippers the protection to which they are entitled.

We don't think there is anything in this bill to which the "carrier" could have legitimate objection.

We, as shippers, are certainly entitled to the protection given us by this bill and solicit your support of the bill, which we understand is now before your committee.

Very truly yours,

Hon. SCHUYLER O. BLAND,

BALLARD & BALLARD Co., By V. F. KIMBEL, Secretary.

MONTANA FLOUR MILLS Co., GREAT FALLS, MONT., January 10, 1936.

Chairman, Committee on Merchant Marine, Fisheries, and Radio,

Washington, D. C.

DEAR MR. SCHUYLER: There is now before the committee for consideration the White bill (S. 1152), which has for its purpose the amendment of the

present law relating to marine transportation by enacting the so-called Hague rules.

As you know, the Hague rules are in effect in most other countries, and the lack of them in this country has been a severe handicap to manufacturers and exporters. The present laws relating to marine transportation are obsolete, and have had the effect of curtailing exports.

We respectfully urge that you do everything within your power to have the bill favorably reported out of your committee. Thank you.

Yours very truly,

Hon. S. O. BLAND,

R. S. ORR, Traffic Manager.

THE AMERICAN SHORT LINE RAILROAD ASSOCIATION,
Washington, D. C., January 7, 1936.

Chairman, Committee on Merchant Marine and Fisheries,

Washington, D. C.

MY DEAR CONGRESSMAN BLAND: I appreciate your advising me of the hearing to be held on January 28, 1936, on the Hague rules bill (S. 1152). So far as I now know, no time will be requested for the presentation of argument on behalf of this association. Personally, however, I think the bill is a very good step in the right direction.

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DEAR CONGRESSMAN BLAND: I am informed that Senate bill S. 1152, providing for the adoption of the Hague rules governing ocean bills of lading was passed by the Senate last year and is shortly coming up before the House for adoption at the session of Congress beginning today.

It is my understanding that this bill incorporates into our laws rules approved by representatives of 24 leading commercial nations of the world, including the United States, many of whom are large buyers of American cotton. As exporters of American cotton we respectfully urge you to vote and work for this bill which will, in a measure, facilitate our foreign trade, and particularly exports of agricultural products, including cotton.

The purpose of this rule is to establish international uniformity of ocean bills of lading on a basis fair to ocean carriers, cargo owners, insurers, and bankers. As far as we know, no one is opposing this bill.

The National Industrial Traffic League, representing a major part of the shippers of this country, appeared before the Senate committee vigorously endorsing this bill. We are members of the National Industrial Traffic League and wish to concur in their presentation and reasons appearing in the public récord.

Therefore we respectfully urge you to lend your wholehearted support to S. 1152.

Very truly yours,

ANDERSON, CLAYTON & Co.

SAN FRANCISCO, CALIF., December 30, 1935.
T. D. File 736

Hon. SCHUYLER O. BLAND,

Chairman, Committee on Merchant Marine, Fisheries, and Radio, Washington, D. C.

DEAR SIR: We urge that your committee recommend favorable action on Senate bill 1152.

The passage of this bill would remove some of the inequitable clauses which the steamship lines have in the past carried on their bills of lading to avoid liability for loss and damage.

While we realize the magnitude of the work which Congress must do during the next few months, we hope that the law can be enacted at this session, because shippers have waited for many years for a change in the present unfair clauses which the steamship lines have imposed.

Yours very truly,

Hon. SCHUYLER O. BLAND,

SPERRY FLOUR CO.,
By J. B. COSTELLO,
General Traffic Manager.

THE MIDLAND FLOUR MILLING CO.,
Kansas City, Mo., January 3, 1936.

Chairman, Committee on Merchant Marine, Fisheries, and Radio,

Washington, D. C.

DEAR SIR: We wish to emphatically urge your support to Senate bill 1152, which we understand will be acted upon at the next session of Congress. The reform brought about by the passage of this bill has been eagerly sought for by shippers, and is a matter that is of utmost importance to shippers.

Our company has always been very largely interested in the export of flour, and we have continued our efforts to the greatest possible extent regardless of the unfavorable condition existing during the past few years.

We are hopeful that in the near future there may be some revival of export business, and we would like to see the serious defects in our existing law as it applies to the rights of cargo corrected by the enactment of the abovestated legislation.

Yours very truly,

C. B. WARKENTIN, President.

NEW YORK, N. Y., January 3, 1936.

Hon. SCHUYLER O. BLAND,

Chairman Committee on Merchant Marine, Fisheries, and Radio.

Washington, D. C.

MY DEAR MR. BLAND: We understand that the White Bill S. 1152 recently passed by the Senate is now before your committee.

The enactment of this bill would be of material benefit to shippers and would bring about changes that have long been advocated as essential to our export trade. We, as shippers, sincerely hope therefore that bill S. 1152 will have your hearty support and that it will be passed at the present session of Congress.

Yours very truly,

PILLSBURY FLOUR MILLS Co.,
By F. A. HOEY, Foreign Manager.

CHICAGO, January 2, 1936.

Hon. SCHUYLER O. BLAND,

Chairman Committee on Merchant Marine, Fisheries, and Radio. House Office Building, Washington, D. C. DEAR SIR: We wish to endorse the proposed changes covered by White bill (S. 1152), as a result of which the Hague rules would be made effective.

It seems to us that they are equitable, that they do not impose any undue hardship on the carrier, and we trust that the bill will have favorable consideration.

Yours truly,

J. R. SHORT MILLING CO.,.... By JEFFREY R. SHORT.

Hon. SCHUYLER O. BLAND,

THE KANSAS MILLING CO., Wichita, Kans., December 30, 1935.

Chairman, Committee on Merchant Marine, Fisheries, and Radio,

House Office Building, Washington, D. C.

DEAR SIR: We respectfully urge you to support White's bill (S. 1152) which passed the Senate at the last session of Congress, and now understand is before your committee.

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