and the point of destination; but if such diversion shall be from a rail to a water route the liability of the carrier shall be the same as though the entire carriage were by rail. The amount of any loss or damage for which any carrier is liable shall be computed on the basis of the value of the property (being the bona fide invoice price, if any, to the consignee, including the freight charges, if prepaid) at the place and time of shipment under this bill of lading, unless a lower value has been represented in writing by the shipper or has been agreed upon or is determined by the classification or tariffs upon which the rate is based, in any of which events such lower value shall be the maximum amount to govern such computation, whether or not such loss or damage occurs from negligence. Claims for loss, damage, or delay must be made in writing to the carrier at the point of delivery or at the point of origin within four months after delivery of the property, or in case of failure to make delivery, then within four months after a reasonable time for delivery has elapsed. Unless claims are so made the carrier shall not be liable. Any carrier or party liable on account of loss of or damage to any of said property shall have the full benefit of any insurance that may have been effected upon or on account of said property, so far as this shall not avoid the policies or contracts of insurance. SEC. 4. All property shall be subject to necessary cooperage and baling at owner's cost. Each carrier over whose route cotton is to be transported hereunder shall have the privilege, at its own cost and risk, of compressing the same for greater convenience in handling or forwarding, and shall not be held responsible for deviation or unavoidable delays in procuring such compression. Grain in bulk consigned to a point where there is a railroad public, or licensed elevator, may (unless otherwise expressly noted herein, and then if it is not promptly unloaded) be there delivered and placed with other grain of the same kind and grade without respect to ownership, and if so delivered shall be subject to a lien for elevator charges in addition to all other charges hereunder. SEC. 5. Property not removed by the party entitled to receive it within forty-eight hours (exclusive of legal holidays) after notice of its arrival has been duly sent or given may be be kept in car, depot, or place of delivery of the carrier, or warehouse, subject to a reasonable charge for storage and to carrier's responsibility as warehouseman only, or may be, at the option of the carrier, removed to and stored in a public or licensed warehouse at the cost of the owner and there held at the owner's risk and without liability on the part of the carrier, and subject to a lien for all freight and other lawful charges, including a reasonable charge for storage. The carrier may make a reasonable charge for the detention of any vessel or car, or for the use of tracks after the car has been held forty-eight hours (exclusive cf legal holidays), for loading or unloading, and may add such charge to all other charges hereunder and hold such property subject to a lien therefor. Nothing in this section shall be construed as lessening the time allowed by law or as setting aside any local rule affecting car service or storage. Property destined to or taken from a station, wharf, or landing at which there is no regularly appointed agent shall be entirely at risk of owner after unloaded from cars or vessels or until loaded into cars or vessels, and when received from or delivered on private or other sidings, wharves, or landings shall be at owner's risk until the cars are attached to and after they are detached from trains. SEC. 6. No carrier will carry or be liable in any way for any documents, specie, or for any articles of extraordinary value not specifically rated in the published classification or tariffs, unless a special agreement to do so and a stipulated value of the articles are indorsed hereon. SEC. 7. Every party, whether principal or agent, shipping explosive or dangerous goods, without previous full written disclosure to the carrier of their nature, shall be liable for expense or destroyed without compensation. SEC. 8. The owner or consignee shall pay the freight, and all other lawful charges accruing on said property, and, if required, shall pay the same before delivery. If upon inspection it is ascertained that the articles shipped are not those described in this bill of lading, the freight charges must be paid upon the articles actually shipped. SEC. 9. Except in case of diversion from rail to water route, which is provided for in section 3 hereof, if all or any part of said property is carried by water over any part of said route, such water carriage shall be performed subject to the liabilities, limitations, and exemptions provided by statute and to the conditions contained in this bill of lading not inconsistent with such statutes or this section, and subject also to the condition that no carrier or party in possession shall be liable for any loss or damage resulting from the perils of the lakes, sea or other waters; or from explosion, bursting of boilers, breakage of shafts or any latent defect in hull, machinery or appurtenances; or from collision, stranding, or other accidents of navigation, or from prolongation of the voyage. And any vessel carrying any or all of the property herein described shall have the liberty to call at intermediate ports, to tow and be towed and assist vessels in distress, and to deviate for the purpose of saving life or property. The term water carriage" in this section shall not be construed as including lighterage across rivers or in lake or other harbors, and the liability for such lighterage shall be governed by the other sections of this instrument. If the property is being carried under a tariff which provides that any carrier or carriers party thereto shall be liable for loss from perils of the sea, then as to such carrier or carriers the provisions of this section shall be modified in accordance with the provisions of the tariff, which shall be treated as incorporated into the conditions of this bill of lading. SEC. 10. Any alteration, addition or erasure in this bill of lading which shall be made without an indorsement thereof hereon, signed by the agent of the carrier issuing this bill of lading, shall be without effect, and this bill of lading shall be enforceable according to its original tenor. 490. Order bill of lading. The order bill of lading is used, when it is the intention to transfer the ownership of the goods while in transit, or when it is intended to ship the goods with the bill of lading attached to a commercial draft for the amount of the consignment. The bill with the draft attached is placed with a bank for collection and the draft must be paid before the goods will be delivered to the consignee. If the owner wishes to dispose of the grain or other commodity which he is shipping, or if he wishes to obtain money on them while they are in transit, he can do so by endorsing the bill of lading to the purchaser or to a bank. This form of bill of iading is negotiable and may be transferred by endorsement. 491. The railroads have adopted a standard form of bill of lading approved by the Interstate Commerce Commission. 492. Carriers of passengers. A carrier of passengers is one who undertakes to carry persons from place to place, gratuitously or for hire. 493. Distinction between carriers of passengers and carriers of goods. A carrier of passengers is to be distinguished from a carrier of goods not only as to the extent of his liability, but also from the nature of his contract. The carriage of goods is a bailment, and the liability arises out of contract; whereas the carriage of passengers is not a contract of bailment, and the liability of the carrier of passengers for injury to those he carries depends entirely upon his negligence, i.e., it arises out of a public duty to carry his passengers safely, and this duty is imposed on the carrier by law. The carrier is not an insurer of the lives and safety of the passengers, but he is held to a high degree of care, and will be liable for even slight negligence. While the carrier does not warrant the safety of the passengers, he is held to the highest degree of care practicable under the circumstances. 494. Limiting liability. Whether a carrier may limit his liability to a passenger by contract, and especially the liability for the negligence of servants, is a disputed question. By the weight of authority a carrier cannot limit his liability for the negligence of his servants. The rule adopted by the United States Supreme Court and by the courts of most of the states is that such a limitation cannot be made. It is considered contrary to public policy to exempt the carrier from even slight negligence where the lives and safety of human beings are concerned. 495. Baggage. A passenger is entitled to have a certain amount of baggage carried free of charge. This includes articles of necessity or convenience, for personal use of the passenger, but not articles of merchandise. It includes money for the passenger's traveling expenses and his personal use. 496. Liability for baggage. The carrier may limit his liability for baggage by special contract, providing such limitations are reasonable and are brought to the passenger's notice. The liability of the carrier for the baggage does not terminate until the passenger has had a reasonable opportunity to take charge of it after it has reached its destination. Rule: Unless the carrier's liability is limited by lawful contract he is liable as an insurer. 497. Right of carriers to make rules. A carrier of passengers may make such rules for the conduct of this business as he sees fit, providing such rules and regulations are reasonable and do not subject the passenger to unnecessary inconvenience and annoyance. Such rules must not violate the law, nor exempt the carrier from liability for his negligence or improper conduct. QUESTIONS 1. Define a common carrier. 2. What is included under the head of common carrier? 3. What is the duty of a common carrier? 4. What can you say of discrimination between shippers by carriers? 5. What is the liability imposed on a common carrier for the goods intrusted to his care? 6. In what cases is a carrier not liable for loss of goods? 7. Why should a carrier be held to such a high degree of liability? 8. Can a carrier limit his liability by special contract? 9. When does the carrier's liability end? 10. What is a carrier's liability when goods are received to be transported over a connecting line? 11. What is a bill of lading? 12. When is an order bill of lading used? 13. What distinction is there between the liability of carriers of goods and carriers of passengers? 14. Can a carrier limit his liability for injuries to passengers caused by his own negligence? 15. What is the carrier's liability for the baggage of a passenger? 16. Can a carrier's liability for baggage be limited in any way, and if so, how? 17. What rules may a carrier of passengers make in the conduct of his business? CASES (GIVE REASONS FOR YOUR ANSWERS) 1. B owned a sloop which he used for his own business. On two occasions he carried goods for C. On the second occasion the sloop was destroyed, not by an act of God nor by the negligence of B. Is B liable for the loss of C's goods? 2. B owns a vessel which makes regular trips between two ports carrying passengers and freight. C shipped goods on the vessel. The vessel was destroyed by fire at sea. Is B liable for the loss of C's goods? 3. N shipped sacks of cement over the M Railway. The railway company returned the empty sacks free of charge. Eight bundles of sacks were lost on the return trip. The railway company defended a suit for damages on the ground that there was no consideration for the return of the sacks. Is this a good defense? 4. A shipped goods over the X Railway. The railway company carried the goods as far as the junction where they were switched to be taken to their destination over another branch of the same line. While the car was on the track a violent storm occurred which threatened the destruction of the car. The railway neglected to move it, and owing to the rising of the water the carload of goods was destroyed. The storm was violent enough to be considered an act of God. If the railway had acted promptly they could have gotten the car out of danger. Is the railway company liable for the loss? 5. A shipped a car load of goods over the M Railway. Owing to a strike on the road the company was prevented from delivering the car promptly, and being of a perishable nature the goods spoiled. Is A entitled to collect the value of the goods from the railway company? 6. A shipped a bill of goods over the N & R Railway. The goods arrived at their destination at 3 p.m. The agent of the company neglected to put the goods in the warehouse, and owing to heavy rain during the night the goods were destroyed. Is the railway company liable? 7. B shipped a carload of cattle over the D & R Railway. One of the animals became violent during the journey and finally threw itself against the side of the car with such violence that it died a few hours afterwards. Is the railway liable for the loss of the animal? 8. C shipped a plate-glass window. In boxing it he did not put a sufficient number of screws in the frame to hold the box together. The plateglass was broken. There was some evidence of rough usage which jammed the cars together with some violence. Is the railway company liable for the value of the plate-glass? 9. D shipped goods over the B & O Railway. The goods arrived at their destination on Thursday. The agent immediately notified D that he must remove the goods within forty-eight hours. D did not send for the goods until Monday. On Sunday night the freight house was burned and the goods were destroyed. The cause of the fire was unknown. Is the railway liable for the loss? 10. C shipped goods by the H Steamship Company. The boat ran upon a rock and the lower part of the vessel was filled with water. On this account the goods were badly damaged. The bill of lading contained a provision that the company would not be responsible for damage of the goods, from any perils or accidents not resulting from their own negligence or that of their servants. Is the company liable for the damage of the goods? 11. A box of plate-glass was shipped from New York to Marion, N. C. The glass went over four different railroads. At Marion it was found broken. The shipper sued the B Railway Company which delivered the glass at Marion. The bill of lading provided "That no carrier shall be liable for loss or damage not occurring on its own road," and then only for loss by negligence. When the glass was delivered to the last railway there was no sign of breakage, nor was there any when it reached Marion until the box was opened. Is the B Railway Company liable for the loss? 12. F was riding on a passenger train. The train slowed up at her station but did not stop. The brakeman said to her "You had better get off; they are not going to halt any more." She tried to get off, but her skirts caught and she was dragged some distance, receiving painful and permanent injuries. Is the railway company liable for the injuries sustained? 13. B was in the employ of the F Railway Company and rode to and from his work on a ticket, which the railway company furnished to the employees without charge. On the back of the ticket was a condition: "That this ticket is accepted on the express agreement, that the ccmpany shall not be a common carrier as to the person riding on it; nor liable under any circumstances whether negligence of agents or otherwise for injury to the person or property of the passenger using this ticket." B was killed while returning from work in a collision caused by the gross negligence of the engineer. Is the company liable for his death? |