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MAY 8, 9, 10, AND 14, 1912

Printed for the use of the Committee on Interoceanic Canals,





FRANK B. BRANDEGEE, Connecticut, Chairman. WILLIAM E. BORAH, Idaho.

F. M. SIMMONS, North Carolina. COE I. CRAWFORD, South Dakota.


LE ROY PERCY, Mississippi. GEORGE C. PERKINS, California.

JOHN R. THORNTON, Louisiana. CARROLL S. PAGE, Vermont.

WILLIAM E. CHILTON, West Virginia. WESLEY L. JONES, Washington.


WILLIAM GARDINER, Assistant Clerk.



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HBP19 754

+ down by Col. Goethals in one of those statements went into operation, n determining the cost of the coal, providing for the liquidation of the

investment, etc. Those are only principles upon which any private

persons would conduct such a business as that, and there could be no P possible objection on the part of any private interest on entering

upon a business in competition with the Government upon even
terms, a condition which I conceive would be beneficial to every
interest involved.

Senator Bristow. Let me inquire, if it should be determined to be
the best interest of the Government in the administration of the
canal to furnish coal at the very minimum price that it could fur-
nish it for the purpose of encouraging shipping by that route, and
thereby sell coal practically at cost, would that operate to prevent
private companies from stiil engaging in the business?

Mr. Sanborn. There are several very interesting questions that arise out of that proposition. First, as to what constitutes the cost of the coal to the Government, whether it is merely the cost of the fuel laid down at their wharf or whether it is inclusive of operating expenses, a certain amount of depreciation or amortization of the investment and repairs to the equipment, and the usual operating expenses. Those are elements which any private interest would have to consider, and if the Government were to do business upon the same basis it would be no hindrance or no deterrent to any outside interest. I believe they would have no objection to going in and colupeting on those terms.

Senator PERKINS. The Government pursues that policy in the manufacture of powder, and also small arms.

Mr. SANBORN. I presume it would do the same here. The coal costs the Government a trifle over $4 a ton laid down there. If

you were to say that the Government was willing to sell that coal at a profit of 10 per cent or 5 per cent, which would be a very narrow margin--say, 20 cents a ton—the Government would be losing money, because there are operating expenses, and repairs, and a great many things which would have to be taken into consideration. To determine the cost you would have to include all those factors. Anyone who conducted the business upon a strictly business basis, whether a Government department or a private individual, would figure the same way. What would be a fair profit for the Government would also be a satisfactory profit for any private business.

Thereupon the committee adjourned.


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Washington, D. C.
The committee met at 10 a. m.

Present: Senators Brandegee (chairman), Crawford, Bristow, Page,
Jones, Townsend, Simmons, Johnston, Thornton, and O'Gorman.

The CHAIRMAN. Gentlemen, the committee will come to order. I
have received a letter from Mr. Horace Turner, of Mobile, Ala., who
testified before this committee, and who also testified before the Com-
mittee on Interstate Commerce. I think the letter I received was in



relation to the hearing before the Interstate Commerce Committee. He incloses a through bill of lading on a railroad and shipping line. He writes a similar letter to Senator Johnston to that which he wrote to me, and he requests that it be inserted in the record. Without objection I will have his letter to Senator Johnston inserted in the record, together with the bill of lading, and I will do the same in the record of the Interstate Commerce Committee. The letter and bill of lading are as follows:


Mobile, Ala., May 1, 1912. Senator Joseph F. JOHNSTON,

Washington, D. C. MY DEAR Sır: While I was before your committee on Wednesday last you asked the question "if the railroads limited their liability to delivery of goods to the ocean carrier,” to which I replied “Yes.”, I am sending you a duplicate through bill of lading which I obtained from the Elder-Dempster Steamship Line, and have marked section 13 for you to read. The only reason the railroads discriminate in the issuance of these through bills of lading is in order to protect some favored ocean line. A few traffic officials, who have charge of this export trade, have controlled the situation for so long a time that they are convinced that the shipper has no right to interfere with the movement of the shipper's goods, but they, the railroads, must arbitrarily act as his guardian. What we want is a "free port" like Galveston, and we have not that at this time, nor can we get same until these clubs are taken away from these railroads operating into Mobile.

The Mobile & Ohio and Southern roads evidently were aware of the fact that they were doing wrong for, in the contracts they make with the favored steamship line, and which were submitted to the commission at our hearing, they state that they will give these exclusive privileges (through bills of lading) unless prevented by legislation from so doing.

Will you not kindly submit the duplicate through bill of lading, which I am sending, to your committee so that all who were present last Wednesday can see an actual exhibit of this limitation of railroad liability? Very truly, yours,

HORACE TURNER. (Through bill of lading issued under agreement with the Liverpool Bill of Lading Conference (1907) Committee and the American Bankers' Association.)

Export bill lading. Series E. No. 30.



Contract number, W. of A. 11: S. S. 95. Series 30.

SELMA, ALA., December 4, 1911. Received at Selma, Ala., from W. P. Welch & Co., the following property in apparent good order, except as noted (contents and condition of contents of packages unknown), marked, numbered, consigned, and destined as indicated below.

Consignee and destination: Order W. P. Welch & Co., Bremen, Germany.
Party to be notified: Lentz & Hirschfeld, Bremen, Germany.
Marks and numbers: WELCH. CRAV-100, Cilt-100.

Car numbers:
To Mobile..

$0.35 Tir..

.03 Ocean.

. 40


.78 Articles: Two hundred bales cotton. Inland freight prepaid to ship side Mobile. Shipper's weight, 105,574. Subject to correction.

To be carried to the port (A) of Mobile, Ala., and thence by steamship Aboukir, to the port (B) of Bremen, Germany (or so near thereto as steamer may safely get, with liberty to call at any port or poris in or out of the customary route), and to be there delivered in like good order and condition as above consigned, or to consignee's assigns, or to another carrier on the route to destination if consigned beyond said port (B), upon payment immediately on discharge of the property, of the freight thereon, at the rate from Mobile, Ala., to Bremen, Germany, of 40 cents ocean, 40 cents total, United States gold currency, per 100 pounds gross weight, and advanced charges

($—), with all other charges and average, without any allowance of credit or discount; settlement to be made on the basis of 4 shillings 2 pence, 4.25 marks, 5.25 francs, 2.50 Dutch guilders, 3.80 kroner to the dollar, United States gold currency; is in other currency, than herein provided for, settlement to be made at the rate of $1.80 to the pound sterling, at the current rate of exchange officially quoted on the day the ocean steamer enters the customhouse at its port of discharge, for which banker's short-sight bills on London can be bought; when ocean freight is prepaid, $4.86 United States gold is equivalent to £l sterling:

In consideration of the rate of freight herein named, it is herehy stipulated that the service to be performed hereunder shall be subject to the conditions, whether printed or written, herein contained, and said conditions are hereby agreed to by the shipper and by him accepted for himself and his assigns as just and reasonable.

Attention of shippers is called to the act of Congress of 1851, which provides 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, or officer, or person in charge of the loading of the ship or vessel, shall forfeit to the United States $1,000.


Any alteration, addition, or erasure in this bill of lading which shall be made without

the special notation hereon of the agent of the carrier issuing this bill of lading shall be void. (1) With respect to the service until delivery at the port (A), it is agreed that:

1. No carrier or party in possession of all or any of the property herein described shall be liable for any loss thereof or damage thereto, unless caused by negligence of such carrier, by reason of floods, fire, jettison, ice, collision, delay or quarantine, robbers, riots, strikes or a stoppage of labor; leakage, breakage, chafing, loss of weight, decay, vermin, changes in weather, heat, frost, or wet; country damage on cotton, exposure while being transported upon dock or upon open cars if it be necessary, or if it is usual to carry such property; or any cause beyond the control of the carrier or party.

2. Vo carrier is bound to carry said property by any particular train or vessel, or in time for any particular market, or otherwise than with as reasonable dispatch' as its general business will permit. Every carrier shall have the right, in case of necessity, to forward said property by any carrier between the point of shipment and the point to which the rate is given.

3. No carrier shall be liable for loss or damage not occurring on its portion of the route, nor after said property is ready for delivery to the next carrier. The amount of any loss or damage for which any carrier becomes liable shall be computed at the value of the property at the place and time of shipment under this bill of lading, unless a lower value has been agreed upon, or is determined by the classification upon which the rate is based, in either of which events such lower value shall be the maximum price to govern such computation. Claims for loss or damage must be made in writing to the agent of the delivering carrier at ultimate destination promptly after arrival of the property, and if delayed for more than 30 days after such delivery of the property, or after due time for such delivery thereof, no carrier hereunder shall be liable in any event.

4. All property shall be subject to necessary cooperage, baling, and repairs at owner's cost. Each carrier over whose route cotton is to be carried hereunder shall have the privilege of compressing the same, and shall not be held responsible for deviation or unavoidable delays in procuring such compression. No carrier hereunder shall be liable for differences in weights or for shrinkage of any grain or seed carried in bulk.

5. Property not removed by connecting carrier within 24 hours after its arrival at the port (A) may be kept in the vessel, car, depot, or place of delivery of the carrier, at the risk of the carrier, as warehouseman only, or may be, at the option of the carrier, removed and otherwise stored in a public warehouse at the owner's cost, and there held subject to lien for all freight and other charges. Property taken from a station or wharf at which there is no regularly appointed agent shall be entirely at risk of owner until loaded into car or vessel, and when received from private or other sidings, or wharves, shall be at owner's risk until the cars are attached to train or loaded into vessel. In case the whole or any part of the property specified herein be prevented by any cause from going from said port (A) in the first steamer of the exporting line above stated, leaving after the arrival of such property at said port (A), the

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