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carrier hereunder then in possession is at liberty to forward said property by succeeding steamer of said line, or if deemed necessary, by any other steamer or line.

6. Property taken from a station or wharf at which there is no regularly appointed agent, or when received from private or other sidings or wharves, shall be at owner's risk until cars are attached to train or until unloaded into vessels. The issue of this bill of lading prior to such actual possession of such property by the carrier shall not be interpreted to vary this stipulation.

7. No carrier hereunder will carry or be liable in any way for any documents, specie, or for any extraordinary value not specifically rated in the published classifications, unless a special agreement to do so and a stipulated value of the articles are indorsed hereon.

8. Every party, whether principal or agent, shipping inflammable, explosive, or dangerous goods, without previous full written disclosure to the carrier of their nature, shall be liable for all loss or damage caused thereby, and such goods may be warehoused at owner's risk and expense, or destroyed without compensation.

9. 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, and at the tariff rates and under the rules provided for by published classification.

10. If all or any of said property is carried by water, such water carriage shall be performed subject to statutory acts and to all the conditions, whether printed or written, contained in this bill of lading, including the condition that no carrier by water shall be liable for any loss or damage resulting from explosion, accidents to boiler or machinery, or for any latent defects in hull, machinery, or appurtenances existing before, at the time, or after shipment, or sailing on the voyage, or unseaworthiness, provided the owners have exercised due diligence to make the vessel seaworthy; nor shall negligence be presumed against any carrier.

The carrier shall have the liberty to transfer, to transship, to lighter, to call at any port or ports, to tow and to be towed, to deviate, to assist vessels in distress, to navigate without pilots, and to load and discharge goods at any time.

11. It is agreed that if any goods are sold short of ultimate destination each carrier that has completed its part of the transportation shall have earned its agreed-upon proportion of the through freight, and the same with the charges advanced shall be due and payable out of the proceeds thereof; and for any distance carried each carrier shall, on same basis, have earned and be entitled to freight, with charges advanced, for such part of the transportation as has been accomplished.

12. In case of quarantine the goods may be discharged at the risk and expense of owners into quarantine depot or elsewhere, as required by quarantine regulations or authorities, or for the carrier's dispatch, or at nearest available point in carrier's judgment, and in any such case carrier's responsibility shall cease when the goods are so discharged, or goods may be returned by carriers at owner's risk and expense to shipping point, earning freight both ways. Quarantine expenses of whatever nature or kind upon or in respect to goods shall be borne by the owner of the goods or be a lien thereon. The carrier shall not be liable for loss or damage occasioned by fumigation or disinfection or other acts required by quarantine regulations or authorities, even though same may have been done by carrier's officers, crew, agents, or employees, nor for detention, loss, or damage of any kind occasioned by quarantine or the enforcement thereof.

13. This contract is executed and accomplished, and all liability hereunder terminates, upon delivery of said property to the exporting steamer, her master, agent, or servants, or to the exporting steamship company or on the pier usually used by the exporting steamer at the said port (A), whether or not the same may be the property of or used as a warehouse by the inland carrier also, and the inland freight and all other hereinbefore-provided for charges shall be a first lien, due and payable by the exporting steamer or exporting steamship company.

14. The terms and conditions of this bill of lading shall and do supersede and annul all previous agreements with respect to the service herein stipulated to be performed.

(II) With respect to the service after delivery at the port (A) first above mentioned, and until delivery at the port (B) second above mentioned, it is agreed that:

1. The steamer shall have liberty to sail with or without pilots; that the carrier shall have liberty to convey goods in craft and for lighters to and from the steamer at the risk of the owners of the goods; and in case the steamer shall put into a port of refuge, or be prevented from any cause from proceeding in the ordinary course of her voyage, to transship the goods to their destination by any other steamer; that the carrier shall not be liable for loss or damage occasioned ħy fire from any cause or wheresoever occurring; by barratry of the master or crew; by enemies, pirates, or robbers; by arrest or restraint of princes, rulers, or people; riots, strikes, or å stoppage

of labor; by explosion, bursting of boilers, breakage of shafts, or any latent defect in hull, machinery, or appurtenances, or unseaworthiness of the steamer; whether existing at the time of shipment, or at the beginning of the voyage, provided the owners have exercised due diligence to make the steamer seaworthy; by heating, frost, decay, putrefaction, rust, sweat, change of character, drainage, leakage, breakage, vermin, or by explosion of any of the goods, whether shipped with or without disclosure of their nature, or any loss or damage arising from the nature of the goods or the insufficiency of packages; nor for inland damage; nor for obliteration, errors, insufficiency or absence of marks, numbers, address, or description: nor for risk of craft, hulk, or transshipment; nor for any loss or damage caused by the prolongation of the voyage; and that the carrier shall not be concluded as to correctness of statements herein of quality, quantity, gauge, contents, weight, and value.

General average payable according to York-Antwerp, rules. If the owner of the steamer shall have exercised due diligence to make said steamer in all respects seaworthy and properly manned, equipped, and supplied, it is hereby agreed that in case of danger, damage, or disaster resulting from fault or negligence of the pilot, master, or crew in the navigation or management of the steamer, or from latent or other defects, or unseaworthiness of the steamer, whether existing at time of shipment, or at beginning of voyage, but not discoverable by due diligence, the consignees or owners of the cargo shall not be exempted from liability for contribution in general average or for any special charges incurred, but, with shipowner, shall contribute in general average, and shall pay such special charges, as if such danger, damage, or disaster had not resulted from such fault, negligence, latent, or other defects or unseaworthiness.

2. That this shipment until delivery at the port (B) second above mentioned, is subject to all the terms and provisions of, and all the exemptions from liability contained in the act of Congress of the United States, approved on the 13th day of February, 1893, and entitled "An act relating to the navigation of vessels,” etc.

3. That the value of each package receipted for as above does not exceed the sum of $100, unless otherwise stated herein, on which basis the rate of freight is adjusted.

4. That the carrier shall not be liable for articles specified in section 4281 of the Revised Statutes of the United States, unless written notice of the true character and value thereof is given at the time of lading and entering in the bill of lading.

5. That shippers shall be liable for any loss or damage to steamer or cargo, caused by inflammable, explosive, or dangerous goods, shipped without full disclosure of their nature, whether such shipper be principal or agent; and such goods may be thrown overboard or destroyed at any time without compensation.

6. That the carrier shall have a lien on the goods for all freights, primages, and charges, and also for all fines or damages which the steamer or cargo may incur or suffer by reason of the illegal, incorrect, or insufficient marking, numbering, or addressing of packages or description of their contents.

7. That in case the steamer shall be prevented from reaching her destination by quarantine, the carrier may discharge the goods into any depot or lazaretto, and such discharge shall be deemed a final delivery under this contract, and all the expenses thereby incurred on the goods shall be a lien thereon.

8. That the steamer may commence discharging immediately on arrival and discharge continuously, any custom of the port to the contrary notwithstanding, the collector of the port being hereby authorized to grant a general order for discharge immediately on arrival, and if the goods be not taken from the steamer by the consignee directly they come to hand in discharging the steamer, the master or steamer's agent to be at liberty to enter and land the goods, or put them into craft, or store at the owner's risk and expense, when the goods shall be deemed delivered and steamer's responsibility ended, but the steamer and carrier to have a lien on such goods until payment of all costs and charges so incurred.

9. That if on a sale of the goods at destination for freight and charges the proceeds fail to cover said freight and charges, the carrier shall be entitled to recover the difference from the shipper.

10. That full freight is payable on damaged or unsound goods; but no freight is due on any increase in bulk or weight caused by the absorption of water during the voyage.

11. That in the event of claims for short delivery when the steamer reaches her destination, the price shall be the market price at the port of destination, on the day of the steamer's entry at the customhouse, less all charges saved, steamer being responsible only for such part of the goods as have been actually delivered to the steamer at the port (A) first above mentioned, and steamer not liable for any loss or damage that may have occurred before such delivery, while agreeing to promptly present to inland carriers for account of owners of goods any claims for shortage or loss or damage that may have occurred Lefore delivery of goods at the port (A) first above mentioned.

12. That merchandise on wharf awaiting shipment or delivery be at shipper's risk of loss or damage not happening through the fault or negligence of the owner, master, agent, or manager of the steamer, any custom of the port to the contrary notwithstanding.

13. That this bill of lading, duly indorsed, le given up to the steamer's consignee in exchange for delivery order.

14. That freight prepaid will not le returned, goods lost or not lost. 15. That parcels for different consignees collected or made up in single packages addressed to one consignee pay full freight on each parcel.

16. That freight payable on weight is to le paid on gross weight landed from ocean steamer, unless otherwise agreed to, or herein otherwise provided, or unless the carrier elects to take the freight on the lill of lading weight; but inland freight and charges paid on wheat, peas, maize, or other grain, or seed, or other bulk articles, from point of shipment to seaboard, shall be paid by consignee at destination on the weight delivered on koard ocean steamer.

17. It is stipulated that in case the whole or any part of the articles specified herein Le prevented by any cause from going in the first steamer leaving after the arrival of such articles at said port, the carrier is only bound to forward them by succeeding steamers employed in the steamship line, or if deemed necessary by said carrier it may forward them in other steamers.

18. That the property covered by this bill of lading is subject to all conditions expressed in the regular forms of bill of lading in use by the steamship company at time of shipment, and to all local rules and regulations at port of destination not expressly provided for by the clauses herein.

19. That if the goods are destined beyond the port (B) second above mentioned, the transshipment to connecting carrier shall be at the risk of the owner of the goods, but at steamer's expense, and that all liability of the steamship company hereunder terminates on due delivery to connecting carrier.

(III) With respect to the service after delivery at the port (B) second above mentioned, and until delivery at ultimate destination if destined beyond that port, it is agreed that:

1. In case the regular steamship service to final port of delivery should for any reason be suspended or interrupted, the carrier, at the option of the owner or consignee of the goods, or the holder of the bill of lading, may forward the goods to the nearest available port, this to be considered a final delivery; or to store them at the port (B) second above mentioned at the risk and expense of the owner of the goods until regular service to final port of destination is opened again.

2. That the property shall be subject exclusively to all the conditions of the carrier or carriers completing the transit; the duty of notification above provided for shall fall exclusively within the obligation of the carrier completing the transit, and no prior carrier shall be responsible for the fulfillment of that obligation.

And finally, in accepting this bill of lading, the shipper, owner, and consignee of the goods and the holder of the bill of lading agree to be bound by all of its stipulations, exceptions, and conditions, whether written or printed, as fully as if they were all signed by such shipper, owner, consignee, or holder.

In witness whereof, the agent signing on behalf of the said the Western Railway of Alabama, and of the said exporting steamship company or exporting steamer and owner, severally and not jointly, hath affirmed to only one bill of lading.

C. B. STURKEY, Agent.

(On behalf of carriers severall y but not jointly.) We hereby accept the conditions of the foregoing bill of lading and authorize the Western Railway of Alabama to furnish copy thereof to the Central Bureau in the city of New York.

W. P. WELCH & Co., Consignor (Shipper). I have also received a letter from Mr. R. P. Schwerin including certain matter which he asked Senator Bristow, who was acting as chairman at the last meeting, might be printed in the record, and without objection Mr. Schwerin's letter and the matter he incloses will be inserted in the record.

The letter and matter referred to are as follows:

The New WillARD, Washington, May 5, 1912. Hon. F. B. BRANDEGEE, Chairman Committee on Interoceanic Canals,

United States Senate, Washington, D. C. DEAR Sır: At the completion of the testimony given by Mr. James K. Lynch, of San Francisco, on Friday, May 3, I requested of Senator Bristow, the acting chairman of the committee, permission to file, as a part of the hearings, my letter of February 29, 1912, to Mr. M. H. Robbins, jr., president of the San Francisco Chamber of Commerce, together with copy of his telegraphic reply of March 11, 1912, and the same are herewith respectfully submitted. Yours, truly,





Washington, D. C., February 29, 1912. M. H. ROBBINS, Jr., Esq.,

President San Francisco Chamber of Commerce, San Francisco, Cal. Dear Mr. RobbiNS: A peculiar situation has arisen regarding the operation of steamers through the Panama Canal, which I believe you would like to know about, even if it is merely for your personal information, and knowing your interest in the upbuilding of the American mercantile marine in the foreign trade, I have felt constrained to bring the matter to your attention.

Certain resolutions were adopted at a conference of the coast chambers of commerce and members of the Pacific coast congressional delegation, and these resolutions were approved October 25, 1911, by the trustees of the San Francisco Chamber of Com

I quote them in full as follows: "Whereas the building of the Panama Canal was undertaken by the people of the United States in pursuance of a great national policy, amongst other things, of providing for the national defense; of opening up the shortest possible water route between the respective coasts of the United States and foreign countries; to provide, through natural methods and to prevent monopoly of transportation, means for transportation between the various sections of the foreign nations and incidentally to encourage the upbuilding of a new decadent merchant marine: Be it

* Resolved, That it is the sense of this meeting that there should be no tolls charged through this canal to vessels coastwise flying the American flag: And be it further

Resolved, That we heartily approve the legislation recommended by President Taft in his message to Congress of December 6, 1910, reading as follows:

*** I can not close this reference to the canal without suggesting as a wise amendment to the interstate-commerce law a provision prohibiting interstate-commerce railroads from owning or controlling ships engaged in the trade through the canal. I believe such a provision may be needed to save to the people of the United States the benefits of the competition in trade between the eastern and western seaboards which this canal was constructed to secure.

Mr. William R. Wheeler, the traffic manager of the San Francisco Chamber of Commerce, is in Washington and has appeared before the congressional Committee on Interstate and Foreign Commerce representing these resolutions. The California delegation to the United States Senate and House feel that Mr. Wheeler, in presenting these resolutions, represents not only the expressed feeling of the business community of the coast, but particularly that of the business community of San Francisco, and naturally they feel that they must be guided in their legislative action by his wishes and representations, even though it is a fact that he, solely and individually, represents the entire business interests of the Pacific coast, and especially the business and future welfare of the mercantile community of the Pacific coast and particularly that of San Francisco.

Now, I take it that these resolutions are very clear on two points: First, “to provide, through natural methods and to prevent monopoly of transportation, means for transportation between the various sections,” etc., and this is emphasized by the resolution that no tolls should be charged through the canal to vessels coast wise flying the American flag. Second, that the interstate-commerce law should be amended prohibiting interstate commerce railroads from owning or controlling ships engaged in the trade through the Panama Canal.

It is fundamentally correct, after the expenditure of some $400,000,000 by the people of the United States in the construction of the Panama Canal, that it should be used to promote in every possible way interchange of commerce between the Atlantic, Guls, and coast ports, as well as all other seaports of the United States and foreign

countries, whether the commerce be carried in American bottoms or foreign bottoms, and primarily, and most important, that if there is to be any advantage gained in this construction, it should accrue to American bottoms. Whether or not tolls should be charged is a question for the different interests of the United States to thrash out and for Congress to legislate upon, but as to the question in which I am so deeply interested it bears only indirectly:

Now, as you know, the Pacific Mail Steamship Co. is controlled by the Southern Pacific Co. through the majority ownership in its shares. There are something like 1,100 stockholders in the Pacific Mail Steamship Co., and the Southern Pacific Co.owns about 100 shares over half. Therefore, this property under the resolution, might be said to be under the control of an interstate-commerce railroad.

This company is now operating from San Francisco to the Orient four large Anerican steamers. It is the only company which has kept the American flag in active operation on the Pacific Ocean in competition with the Canadian Pacific (British); Nippon Yusen Kaisha (Japanese); Osaka Shosen Kaisha (Japanese); and Toyo Kisen Kaisha (Japanese); all of which are heavily subsidized lines. It certainly has been a value to the commercial interests of San Francisco as the original and continuing connection between the Pacific coast and oriental ports. It has brought to and taken from a large freight tonnage and a large number of passengers, and has expended millions in the port of San Francisco for labor, material, and supplies.

I have given considerable study to the question as to the future of this property when the canal is in operation, and have reluctantly come to the conclusion that it will be absolutely impossible to continue the service solely between San Francisco and oriental ports. The great bulk of oriental traffic is moving to-day via Suez. The bulk of this traffic is developed in the industrial centers on the Atlantic coast. When the canal is open, a great percentage, if not all, of this traffic will move by the canal to the Orient instead of by Suez, and the business which the railroads have brought to us, or which we have distributed to the railroads in the past, will move by the new allwater route and we will be shut out. The only way that we can continue to exist is by operating from the Atlantic seaboard to the Orient and following the same route as followed by our foreign competitors; and in order to do this, it will be necessary to increase the present fleet, consisting of the Korea, Siberia, Mongolia, and Manchuria, by four additional up-to-date freight and passenger steamers. With this end in view, more than a year ago I started designing such ships, and finally decided upon vessels about 680 feet long, 75 feet beam, of about 37,000 tons displacement on 30-foot draft, and carrying about 10,000 tons of freight, with all the modern conveniences and luxuries of the Atlantic passenger transportation. The next move was to obtain the money with which to build such ships; and after a year's hard struggle I finally interested the people in New York, and they agreed that they would loan the Pacific Mail Steamship Co. the money with which to build the ships, taking a mortgage thereon, provided these ships would be permitted to operate through the canal on an equal basis with any other ships, either American or foreign.

The eight ships would form a scheduled line, two steamers a month leaving New York via the canal and touching at San Pedro, San Francisco, Honolulu, Yokohama, Kobe, Manila, and Hongkong, and two steamers a month would leave Hongkong on the reverse run, so that there would be a semimonthly service from each port of call each way. It is proposed to alter the Korea, Siberia, Mongolia, and Manchuria to bring them up to the latest condition of passenger requirements, so that the eight ships would be in every way a pride to the American mercantile marine and American industry, and of service to the public.

President Taft some years ago annunciated the precept that no railroad-owned steamships should be permitted to operate through the canal, and at that time suggested to Senator Frye the advisability of embodying such requirements in the law. In conversation with the President some weeks ago he stated that he regretted exceedingly that he had ever introduced that suggestion; that he had changed his mind; and that he believed the canal should be open to all American ships, regardless of ownership, and very forcibly stated, “How are you going to get competition if you prohibit ships going through the canal?” Perhaps you have seen that he voiced this sentiment through the Secretary of War, who, on appearing before the House Committee on Interstate and Foreign Commerce, stated that there was no necessity for any provision in the bill before Congress to prevent the stifling of competition in transportation rates by reasou of a combination of shipping interests using the canal. He said he would leave these matters to the President rather than to Congress, and that the Interstate Commerce Commission, with broadened powers to cover coastwise traffic, could meet any such situation, should it arise. I was naturally very much encouraged by this change of heart in the administration. Of course the question presented itself to me whether the different chambers of commerce and the trustees of the San Francisco Chamber of Commerce contemplated applying these resolutions

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