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Full text of "Ocean steamship traffic management"

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OCEAN STEAMSHIP 
TRAFFIC MANAGEMENT 



OCEAN STEAMSHIP 
TRAFFIC MANAGEMENT 



BY 



GROVER G. HUEBNER, Ph.D. 

PROFESSOR OF TRANSPORTATION AND 

COMMERCE IN THE UNIVERSITY 

OF PENNSYLVANIA 




D. APPLETON AND COMPANY 

NEW YORK LONDON 

1920 



Copyright, 1920, by 
D. APPLETON AND COMPANY 



fRINTEP N THE pNyTEp STATES OF AMERICA 



He 



i^q-^ 



EDITORS' PREFACE 

■» This volume upon the management of ocean steamship traffic 

is the first of a series of manuals designed to assist young men 
in training for the shipping business. The necessity for such a 
series of manuals became evident when, as a result of the great 
war, the tonnage of vessels under the American Flag was, within 
a brief period, increased many fold. To carry on the war, and 
to meet the demands of ocean commerce after the war, the United 
States Government, through the Shipping Board and private 
ship-yards, brought into existence a large mercantile marine. 
If these ships are to continue in profitable operation under the 
American Flag, the people of the United States must be trained 
to operate them. Steamship companies, ship-brokers and freight 
forwarders must all be able to secure men necessary to carry on 
the commercial and shipping activities that make use of the ships. 
A successful merchant marine requires ships, men to man the 
ships, and business organization to give employment to the ves- 
sels. 
. In its Bulletin upon "Vocational Education for Foreign Trade 
vl and Shipping" (since republished as "Training for Foreign 
^ Trade," Miscellaneous Series No. 97, Bureau of Foreign and 
^ Domestic Commerce, for sale by the Superintendent of Docu- 
"^ ments), the Federal Board for Vocational Education includes 
S among other courses suggested for foreign trade training two 
^ shipping courses upon subjects with which exporters should be 
^ familiar, namely, "Principles of Ocean Transportation" and 
V "Ports and Terminals." Although such general courses are 
> jk helpful to the person engaging in the exporting business a train- 
ing for the steamship business as a profession requires much 
greater detail in the knowledge of concrete facts of a routine 
nature. An analysis was made of the various divisions of the 
steamship office organization and it was suggested to the United 
States Shipping Board that as no literature existed of sufficient 



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vi EDITORS' PREFACE 

practicability and detail several manuals should be writ v : 
ing the principal features of shore operations. 

The response of the Shipping Board was hearty. The Ship- 
ping Board appointed Mr. Emory R. Johnson of its staff, then 
conducting an investigation of ocean rates and terminal charges, 
as its editor. The Federal Board for Vocational Education 
designated Mr. R. S. MacElwee, then engaged in the prepara- 
tion of studies in foreign commerce. Before the project was 
completed Mr. Johnson severed his connection with the Shipping 
Board in 1919, and January, 1919, Mr. MacElwee became Assist- 
ant Director of the Bureau of Foreign and Domestic Commerce, 
Department of Commerce. The interest of the editors in the 
project did not terminate, however, and their close cooperation 
has been voluntarily continued out of conviction that the works 
will be helpful. 

The books have been written with a view to their being read 
by individual students conducting their studies without guidance, 
also with the expectation that they will be used as class text 
books. Doubtless colleges, technical institutes, and high schools 
having courses in foreign trade, shipping business and ocean 
transportation will desire to use these volumes as class texts 
in a manner outlined in "Training for the Steamship Business," 
by R. S. MacElwee, Miscellaneous Series 98, Bureau of Foreign 
and Domestic Commerce, Superintendent of Documents, Wash- 
ington, D. C. It is expected that evening classes and part time 
schools, organized under the patronage of the Federal Board 
for Vocational Education, Chambers of Commerce, and other 
interested organizations will find the manuals useful. Should 
these volumes accomplish the desired purpose of giving the 
American people a somewhat greater proficiency in the business 
of operating ships, they will have proven successful. 

The Editors 



AUTHOR'S PREFACE 

The preparation of this text was undertaken at the suggestion 
of the editors : Dr. Emory R. Johnson, representing the United 
States Shipping Board, and Dr. R. S. MacElwee, representing the 
Federal Board for Vocational Training. It is one of a series of 
manuals "being prepared for use in giving instruction in the va- 
rious phases of the steamship business." In this volume of the 
series an effort is made to present in systematic order the prin- 
cipal facts, forms, practices, functions and principles which 
young men engaged in or contemplating employment in the ocean 
shipping business should know with respect to steamship traffic 
management. 

The text is divided intO' three parts. In Part I, dealing 
with the traffic organization of ocean shipping, the organization 
and functions of the various types of ocean services and traffic 
agencies are classified and defined. Separate chapters are in- 
cluded to discuss at some length the business organization and 
functions of the Freight and Passenger Traffic Departments of 
Steamship lines ; the organization and administration of char- 
tered steamship services and ship brokers ; the organization 
of ocean conferences ; and the organization and services of ocean 
freight forwarders. 

Ocean shipping documents — their contents, form and uses — 
are described and many are reproduced for the convenience of 
the student in Part II. Separate chapters deal with the shipping 
documents required by ocean carriers; those required by the 
United States Government; those required by foreign govern- 
ments in the United States export trade; and those used in the 
freight forwarding business. An account is also given of time 
and voyage charter parties. The many forms reproduced in 
these chapters are made out for assumed or actual shipments so 
that the student may see how they are used in practice. 

Part III, dealing with ocean freight rates and regulation, con- 



viii AUTHOR'S PREFACE 

tains chapters on ocean freight classifications and rate tariffs; 
ocean rate-making; and the regulation of steamship services and 
rates by the Government. 

I wish to acknowledge my indebtedness to the various officials 
of steamship lines, and to the ship brokers, steamship agents, 
freight forwarders, customhouse brokers, and customs authorities 
who have rendered valuable assistance in explaining their business 
organizations and practices and in providing and making out 
forms. Acknowledgment is also due to Dr. R. S. MacElwee for 
the use of an unpublished "job analysis" of the organization of a 
steamship line ; and to Mr. Joseph A. Slechta for the use of an 
unpublished paper on Practical Steamship Operation. I wish 
to acknowledge wnth gratitude the advice and encouragement re- 
ceived from Dr. Emory R. Johnson. 

The index was prepared by Mr. T. P. Harris, 

Grover G. Huebner 



CONTENTS 
PART I 

THE TRAFFIC ORGANIZATION OF OCEAN SHIPPING 

eiUPTER PAGE 

I. Types of Ocean Services and Traffic Agencies , . 3 
Regular steamship lines — The tramp or chartered service 
— Private or industrial bulk carriers — Steamship traffic 
agencies — Ocean conferences and associations of steam- 
ship owners or shipping interests — Government author- 
ities and steamship traffic management. 

11. Organization of the Freight Traffic Department of 

A Steamship Line 18 

Freight Traffic Manager— Outbound Freight Traffic 
Manager — Clerical and soliciting staflf in Outbound 
Freight Department— Branch offices and agencies — The 
Inbound Freight Department — Connection of Freight 
Traffic Department with other departments. 

III. Organization of the Passenger Traffic Department of 

a Steamship Line 32 

Passenger and Assistant Passenger Traffic Manager — 
The Cabin Department — The Steerage Department — Co- 
operation with other departments. 

IV. Organization and Administration of Chartered Steam- 

ship Services and Ship Brokerage 44 

Types of chartered services — Types of tramp owners or 
operators — Services rendered by ship brokers — Business 
organization of ship broker — Ship brokerage charges and 
profits. 

V. Rate and Traffic Agreements, Pools and Conferences 

OF Ocean Carriers 56 

Conference agreements in chartered ocean services — Prev- 
alence of ocean line conferences — Organization of ocean 
line conferences — Types of ocean line rate agreements — 
Ocean line pools — Other methods of controlling competi- 
tion between conference lines — Methods of controlling 
competition of non-conference lines — Complaints against 
conferences — ^Advantages of conferences. 



X CONTENTS 

CHAPTEK PAW 

VI. Ocean Freight Forwarding and Freight Brokerage . 71 

Nature of services performed — Business organization of 
ocean freight forwarders — Freight brokerage and for- 
warding charges — Competition in freight forwarding 
business. 

PART II 

OCEAN SHIPPING DOCUMENTS 

VII. Shipping Documents Required by Ocean Carriers . 87 
Cargo contracts and booking records — Shipping permits 
— Dock receipts — Tally sheets, dock sheets or returns, 
cargo books and stowage plans — Ocean bills of lading — 
Through export bills of lading — Parcel receipts — Ship's 
manifests — Documents issued by carrier when dis- 
charging. 

VIII. Shipping Documents Required by the United States 

Government 115 

General ship's papers — Documents required on clearing a 
vessel in the foreign trade — Documents required on enter- 
ing a vessel in foreign trade. 

IX. Shipping Documents Required by the United States 

Government (Continued) 146 

Official documents required of exporters — Official docu- 
ments required of importers — Customhouse brokers and 
shipping documents. 

X. Shipping Documents Required by Foreign Govern- 
ments IN United States Export Trade .... 160 

Consular invoices — Certificates of origin — Commercial in- 
voices — Non-dumping or value certificates — Health cer- 
tificates and special consular documents. 

XI. Shipping Documents Used in Ocean Freight Forward- 
ing Business 171 

Shipping instructions — Arrival notice, shipping permit 
and customs declaration — Lighterage or trucking instruc- 
tions — Bills of lading — Forwarder's waybills — Forward- 
er's expense bill. 

XII. Time Charter Parties 185 

Commercial time charters — Government time charters. 

XIII. Trip or Voyage Charters 202 

Gross form charter parties — Net form charters — Modified 
gross and net charters. 



CONTENTS xi 

PART III 

OCEAN RATES AND REGULATION 

CHAPTER PAGE 

XIV. Ocean Freight Classifications and Tariffs . . . 229 
Ocean freight classifications — Ocean tariffs — Ocean 
rate quotations. 

XV. Ocean Rate-Maeing 235 

Ocean line rate-making — Ocean charter rate-making — 
Government rate-making. 

XVI. Ocean Rate-Making {Continued) 246 

Inland rates to and from shipside — Special export and 
import rates — Through rail-ocean rates — Ocean passen- 
ger fares. 

XVII. Government Regulation OF Ocean Rates and Services 252 
Passengei and immigrations laws — The Interstate Com- 
merce Act — -The United States Shipping Act of 1916 — 
War control of ocean shipping. 

Index 267 



LIST OF CHARTS AND FORMS 

CHARTS 

PAGE 

I. Typical Organization of a large Passenger and Freight 

Steamship Company 6 

II. Business Organization of a Steamship Line . . . . ii 

III. Freight Traffic Department of a large Steamship Line . 19 

IV. Passenger Traffic Department of a large Steamship Line . 33 
V. Typical Business Organization of a large Ship Broker . . 52 

VI. North Atlantic Freight Conferences, 1914 . . (Facing) 60 

VII. North Atlantic Passenger Conferences, 1914 . (Facing) 62 

VIII. Tjrpical Business Organization of large Ocean Freight For- 
warders 76 

FORMS 

{TUUBER PAGE 

1 Ocean Freight Contract 88 

2 Daily Booking Sheet 89 

3 Shipping Permit 90 

4 Permit Sheet 92 

5 Dock Receipt 93 

6 Dock Sheet 95 

7 Tally Sheet 96 

8 Stowage Plan 97 

9 Ocean Bill of Lading (Facing) 99 

10 Export Bill of Lading (Facing) 104 

11 Parcel Receipt 105 

12 Ship's Manifest ^ . . 107 

13 Arrival Notice and Freight Bill 109 

14 Final Notice of Arrival no 

15 Delivery Order no 

16 Delivery Receipt ,,.,,».,, jii 

ziii 



xiv LIST OF CHARTS AND FORMS 

NUMBER PAGE 

17 Bond for Production of Bill of Lading 112 

18 Marine Note of Protest 113 

19 Master's Extension of Protest 114 

20 Certificate of Registry 116 

21 Certificate of Inspection 117 

22A Shipping Articles 118 

22B Back of Shipping Articles 121 

23 Crew List 121 

24 Master's Oath Under Seamen's Act 123 

25 Certificate of Radio Apparatus when Clearing 124 

26 Oath of Master of Steam Vessel Clearing without Passengers . 125 

27 Oath of Master under Meat Inspection Law 126 

28 Port Sanitary Statement 127 

29 Request for Immediate Clearance 128 

30 Bond to Produce Complete Manifest and Export Declarations 129 

31 Report of Entrance and Clearance in Foreign Trade . . . 130 

32 Affidavit and Agreement Governing Disposition of Cargo . . 131 

33 Application and License for Bunker Fuel, Stores and Supplies . 132 

34 Report of Movement and Lading of Vessels Clearing Foreign 

Port 134 

35 Clearance of Vessel to a Foreign Port 135 

36 Oath on Entering American Vessels from Foreign Port . . 136 

37 Oath on Entering Foreign Vessel from Foreign Port . , . 137 

38 List of Passengers 138 

39 Radio Declaration when Entering 139 

40 Preliminary Application to Lade or Unlade Cargo .... 140 

41 Vessel Bond (term) 141 

42 General Permit to Lade or Unlade 142 

43 Application and Permit to Allow Unpermitted Cargo to Remain 

upon Wharf i43 

44 General Order to Send Unpermitted Packages from Wharf to 

Public Store i44 

4SA Shipper's Export Declaration 147 

45B Back of Shipper's Export Declaration 148 

46 Export Meat Inspection Certificate 149 

47A United States Consular Invoice (Purchased Form) . . . . 152 

47B Back of United States Consular Invoice (Purchased Form) . 153 

48A United States Consular Invoice (Consigned Fonn) .... 154 

48B Back of United States Consular Invoice (Consigned Form) . 155 

49A Brazilian Consular Invoice 161 

49B Back of Brazilian Consular Invoice 163 



LIST OF CHARTS AND FORMS xv 

NUMBER PAGE 

50 Argentine Certificate of Origin 165 

51 Canadian Invoice of Goods Sold by Exporter Prior to Shipment 167 

52 Canadian Invoice of Goods Shipped on Consignment . . . 168 

53 Forwarder's Freight Contract 171 

54 General Operating Committee. Shipping Authority , . . 172 

55 Forwarder's Shipping Instructions 174 

56 Forwarder's Lighterate Instructions 176 

57 Forwarder's Trucking Instructions 177 

58A Forwarder's Bill of Lading 179 

58B Back of Forwarder's Bill of Lading 180 

59 Forwarder's Waybill 182 

60 Forwarder's Expense Bill 183 

61 A Time Charter Party (Pre-war Conditions) 186 

61B Time Charter Party (War Conditions) 18? 

62 New York Produce Exchange Time Charter Party . . , , 194 

63 Government Requisition Charter 199 

64 General Cargo Gross Form Charter Party 203 

65 New York Berth Terms Grain Charter Party (Pre-war Con- 

ditions) 205 

66 Gross Form Coal Charter Party (Short Trips Along Coast and 

to West Indies) 206 

67 General Cargo Net Form Charter Party 212 

68a New York Net Grain Charter Party (Pre-war Conditions) . 213 

68b New York Net Grain Charter Party (War Conditions) . . 215 

69A Nitrate Charter Party (Pre-war Conditions) 218 

69B Nitrate Charter Party (War Conditions) 220 

70A Welsh Form Coal Charter Party (Pre-war Conditions) . . . 222 

70B Reverse of 70A . 224 



PART ONE 

THE TRAFFIC ORGANIZATION OF 
OCEAN SHIPPING 



CHAPTER I 

TYPES OF OCEAN SERVICES AND TRAFFIC AGENCIES 

The student of steamship traffic management, before making 
a more detailed examination of the traffic organization and func- 
tions of the various ocean transportation services and of the prin- 
cipal types of steamship traffic agencies, should obtain a bird's- 
eye view of the entire traffic structure of ocean shipping. A 
view of steamship traffic management as a whole will also assist 
him in mastering the shipping documents described in Part II 
of this manual, and in obtaining a knowledge of ocean rate- 
making and the regulation and control of the steamship business 
by the Government, subjects which are discussed in Part III. 
The preliminary outline of the organization of ocean shipping 
contained in this chapter is followed with a more detailed 
account of the organization and practices of traffic management. 

There are three types of ocean transportation services, which 
are provided respectively by the regular steamship lines, by 
chartered vessels or tramps, and by private or industrial lines. 
Each of these services has its variations, each performs definite 
functions, and each is so organized and managed as to make 
possible the attainment of these functions. 

\ Regular Steamship Lines 

The regular steamship line service is the most generally known 
because it includes the great ocean passenger lines and the 
world's largest and fastest steamships, and because it is widely 
advertised. The regular line service is not, however, performed 
exclusively in the great passenger steamers with which the travel- 
ing public is familiar. There are a variety of different kinds of 
regular steamship lines. The passenger carrying lines vary 
everywhere from those which carry mainly passengers, mail, 
express goods, some high class freight and relatively small quan- 
tities of heavy cargo to those which depend largely upon freight 
cargoes but have accommodations for a limited number of pas- 

3 



4 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

sengers. Steamship lines operating vessels of great speed having 
relatively little space for cargo are sometimes referred to as 
"express lines" ; those which carry large numbers of passengers 
as well as much higli class freight and bulky cargo are often 
called "passenger lines" ; and those carrying mainly freight car- 
goes but with accommodations for some passengers are known 
as "combination lines." But there is no universally accepted 
terminology. 

The regular line service also includes many "cargo lines" 
which operate over regular routes and on scheduled sailings, as 
do the passenger carrying lines, but confine themselves to freight 
traffic. They operate many of the world's fastest, largest and 
best equipped general cargo steamers. 

The distinctive function of the regular lines is to operate ves- 
sels and carry freight for the shipping public, or passengers, on 
regular routes and so far as possible on scheduled sailings. They 
also perform the important functions of providing a service espe- 
cially adapted to the needs of shippers who desire to ship high 
class freight requiring rapid transportation or delivery within 
a specified time, and of those who have less than shipload lots 
of cargo which do not warrant the chartering of an entire tramp 
vessel. The regular freight rates of the lines are usually higher 
than the charter rates of tramps, but line steamers are fre- 
quently put "on the berth" for bulky cargoes of grain, case oil 
or similar commodities to fill up space not occupied by general 
cargo or to avoid the need of taking on excessive ballast. In 
such instances the lines may also afford the shipper of such 
cargoes the advantage of low shipping costs. The passenger 
carrying lines perform the additional special function of pro- 
viding a service adapted to the transportation of passengers and 
the international mails. 

The traffic conditions favorable to a regular line service obvi- 
ously do not prevail in all ocean trades. The operation of a 
regular line of vessels over definite routes and on scheduled 
sailings depends upon the availability of a regular flow of traffic 
over the selected routes. Line steamers do not need to sail over 
direct routes connecting a single clearance port with a single 
port of discharge; they may stop at various points of call and 
their routes may be triangular or contain a number of "legs." 
They may also receive traffic at the selected ports from many 



OCEAN SERVICES AND TRAFFIC AGENCIES 5 

interior points and from outports, and similarly discharge traffic 
destined to interior points and outports. They may have definite 
connections with branch lines or other steamship lines for the 
interchange of traffic. Unless the total existing or prospective 
traffic is sufficiently heavy and regular, however, conditions are 
not favorable for the operation of a regular Une service. This 
regularity and volume of traffic, moreover, has particular ref- 
erence to general freight cargoes, and in the case of passenger 
lines to passenger traffic. 

The nature of line services and line traffic requires an exten- 
sive organization and facilities. Lines have definite arrange- 
ments with respect to docks, wharfs and warehouses, and other 
port facilities; they solicit and advertise for traffic, and they 
maintain a permanent main office and field organization. Some 
lines provide services in a number of different trades and operate 
trunk lines and branch lines or feeders in the same way that 
large railroad systems do. 

Most steamship lines are operated by steamship companies or 
by steamship agents who are engaged in the business of operat- 
ing lines for themselves or for line companies. There are some 
government lines, but such lines usually are also operated through 
steamship companies. The business organization of a steam- 
ship company or agent depends upon the volume and character 
of its traffic, the efforts needed to obtain traffic, the number 
and kind of services provided, the number of ports of call, and 
the views of officials and owners regarding organization. The 
organization of no line is strictly typical of all other lines. The 
organization contained in Chart No. I is that of a large freight 
and passenger carrying line ; it is typical of such lines and it dis- 
closes the main business departments found in most line organi- 
zations. The business organization of each line within the va- 
rious departments will of course vary as stated above. Cargo 
lines dispense with the Passenger Traffic Department, and most 
of the officials and other employees of small lines perform a wider 
range of duties than those of large lines, the volume of whose 
business warrants a high degree of specialization. The Freight 
and Passenger Traffic Department contained in Chart No. I are 
fully described in subsequent chapters. These departments are 
important parts of the larger business organization, all parts of 
which should cooperate when desirable and are brought together 



8 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

under the Vice-Presidents, President and Board of Directors. The 
chart indicates the possible avenues of promotion and the many 
different kinds of positions available in a large line organization. 
It will be noted that the largest department in the entire or- 
ganization is the Department of Operations, which has charge of 
all the various functions of physical operation and maintenance 
as distinct from commercial or traffic activities. It is in fact a 
group of departments brought together under the Manager of 
Operations. The work of loading, discharging, provisioning, 
maintaining and running the line's vessels involves so much 
detail and responsibility that in the large line selected for analysis 
it is divided among various subdcpartments and agencies, each 
with responsible heads. The Wharf Department under the Gen- 
eral Superintendent of Wharves has complete charge of the 
physical work of receiving and delivering traffic at the line's 
docks, wharves, piers and warehouses. Its work is so closely 
connected with that of the traffic departments that the student 
of traffic management will do well to master the detailed account 
given in the volume of this series on Wharf Management by Dr. 
R. S. MacEIwee and Mr. T. R. Taylor. The Marine or Deck 
Department under the Marine Superintendent sees to the docking 
and undocking of the line's vessels and also includes the deck 
department of the vessels when afloat. The officers and crew 
comprising the deck department of a ship are indicated in the 
chart. The Engineer Department under a Superintendent En- 
gineer similarly has charge of the engine department of the line's 
ships, and of the upkeep of their engines and repairs to their 
hulls in case they need to be put in dry dock. The Construction 
Department, consisting of a Chief of Construction, assistant con- 
structors, draftsmen and a clerical force, has charge of the line's 
ship and other construction work. The Victualing Department, 
under a Victualing Superintendent, has charge of all the food 
supplies needed aboard a ship, purchasing and handling them 
ashore and supervising the serving of them afloat through the 
vessel's chief stewards and their staff of assistants, storekeepers, 
cooks, etc. Under the Manager of Operations of this line there 
is also a Chartering Department wliich handles the company's 
ship chartering transactions. Its organization is similar to that 
of a ship broker.^ 
* Described in Chapter IV. 



OCEAN SERVICES AND TRAFFIC AGENCIES 9 

The Manager of Operations, moreover, has branch offices at out- 
ports in the United States, and branch offices and agencies at 
foreign ports to conduct the line's operating functions away from 
its home office. 

The line organization selected as the basis for discussion also 
has a Treasurer's Department. The Treasurer, who is its execu- 
tive head, has control of the company's financial afifairs within the 
limits set by the Board of Directors, and he signs its stock certifi- 
cates and manages its banking and foreign exchange relations. 
The Assistant Treasurer, under him, has charge of the Money 
Order and Draft Department which is so closely connected with 
the Passenger Traffic Department that his office is located there. 
The Cashier, assistant cashiers, cashbook keepers and clerks of 
the Treasurer's department, some of whom are located in various 
departments throughout the organization, receive the company's 
funds and keep the necessary cash records. The money received 
by the Cashier or his staff is turned over to the Treasurer, who 
is responsible for its safe-keeping. 

The Comptroller's Department is divided into the offices of 
the Comptroller and Assistant Comptroller and three subdepart- 
ments. The Comptroller is the executive head of the entire de- 
partment and has charge of disbursements and financial state- 
ments. The Assistant Comptroller is responsible for the making 
of the monthly and yearly balance sheets and for the keeping of 
the general books of the company. This necessitates the con- 
solidation and posting of accounts which are of two principal 
kinds : voyage accounts and general expense. The accounting 
classification is so elaborate that the Assistant Comptroller of 
the line has a staflf of three subdepartments, — Accounting, Audit- 
ing and Voucher. 

The Chief and Assistant Chief of the Accounting Department 
and a staff of bookkeepers have charge of posting items in the 
ledgers from the cashbooks and other books kept in various parts 
of the line's organization; and they take off monthly trial bal- 
ances, and prepare statements as requested. The Auditor has 
charge of checking the company's funds and keeping the neces- 
sary books; he signs vouchers before payment, checks bills and 
files them in his office, and checks and files foreign accounts. He 
has a staff of clerks to assist in this v/ork, and as he is in charge 



10 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

of the passenger manifests covering each voyage as tbey are 
received from the Passenger Traffic Department he has the as- 
sistance of a "passenger manifest clerk." The Auditor of Dis- 
bursements with a staff, as shown in Chart No. I, has charge of 
the final payment of all outgoing funds. Vouchers payable at a 
bank are prepared and sent out under the immediate direction of 
his "chief voucher clerk." A "disbursement book clerk" has charge 
of the keeping of the disbursement books. A "petty cash ac- 
count clerk" deals directly with the Cashier's clerks, who keep the 
petty cash accounts in iJie Treasurer's Department. A junior 
"clerk for the prevention of duplication" is entrusted with card 
index records of bills against which he checks bills to avoid the 
danger of having the same bill paid more than once. The voucher 
department also has a number of junior "bill filing clerks." 

The business organization of a steamship line may have an 
Insurance Department to handle its insurance work, particularly 
that having to do with the placing of marine insurance and the 
adjustment of claims. The insuring of vessels through self-in- 
surance funds, mutual associations, outside marine insurance 
companies and underwriters, or through the Bureau of War 
Risk Insurance of the United States Treasury Department is 
fully described in the manual of this series on Marine Insurance 
by Dr. S. S. Huebner, 

There is also a Secretary, the duties of whose ofifice are similar 
to those usually performed by the secretary of any large company. 
The line's legal work may be in charge of a Counsel or it may 
be turned over to an outside firm of attorneys. Its organization 
may have a Chief Clerk with a general clerical staff, and a num- 
ber of the higher executive officers may have private secretaries. 

To emphasize the fact that the organization outlined in Chart 
No. I is that of a large steamship line and that smaller lines have 
a less extensive and complex organization, attention is called to 
Chart No. II. This chart does not show the line's entire clerical 
staff and field forces, but it brings out the various departments 
of its main office organization. 

2^.„^ The Tramp or Chartered Service 

Very differently organized and less generally understood is 
the freight service performed by the thousands of cargo vessels 



OCEAN SERVICES AND TRAFFIC AGENCIES 



11 



that operate without established sailing schedules and confine 
themselves to no definite routes or limited group of ports. They 
are known as tramps because they may be chartered to carry 
cargo over any route and to any port not prevented by inadequate 
harbor depths or legal restrictions. They are usually chartered 
to transport full cargoes of heavy, bulky commodities and are 



BUSINESS ORGANIZATION OF A STEAMSHIP LINE 



Treasurer 



Chief Clerk 



Genl. Clerical 

Stall 



Board of Directors 



Counsel President — Secretary 



General Manager 



Comptroller 



Traffic Manager 



Marine Supt. 



Insurance 
Agent 



Purchasing 
Agent 



Auditor 



Port 
Engineer 



. 






1 




Frelcht Agent 




Passeneor 
Agent 
















Permit Clori:8 




Ticket Olerka 
















Bill of Lading 
Clerks 




Inward Freight 
Clerks 





Pier 

Hnperintendent 



Accountants 



Fort Captain 



Cashier 



Receiving 
Clerk 



Tow Boat 
Captain 



Tallymen 



Stevedore 
Foremen 



Chart Prepared by Joseph A.SUchta~ 



Chart II 



therefore of great importance in the ore, coal, grain, nitrate, 
phosphate, lumber, clay, building material, chalk, sugar and 
iron and steel trades, where the shipment of large cargoes is the 
common practice. But their services are not limited to these 
trades; tramps may be chartered to carry cargoes of any kind 
not requiring vessels of special design and equipment. 

The fundamental document governing the relations between the 
tramp owner or operator and the charterer is the charter party. 



12 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

When chartered for a single voyage a trip or voyage charter is 
executed, and when a vessel is chartered for a period of time or 
a number of voyages the underlying contract is known as a time 
charter. The numerous variations within these two general 
classes of charter parties are described in Chapters XII and 
XIII. 

Though the chartered freight service usually refers to the 
chartering of tramps for full cargoes, tramp vessels are also 
used in other ways. They are sometimes put "on the berth" by 
their owners or operators, either for full or partial cargoes. 
Cargo is then sought by personal solicitation or advertising and 
sailing dates and ports of discharge may be announced. Many 
shippers with large or small cargoes may deliver their shipments 
to the tramp vessel as they would to a line, each paying freight 
rates for his particular cargo instead of a charter rate or hire 
covering the services of the entire vessel for a voyage or period 
of time. A tramp may be similarly put on the berth by ship 
brokers or by speculators who charter it on their own account 
and then endeavor to find cargoes for it. When a tramp is en- 
gaged in this service it may come into direct competition with 
the regular lines ; it then becomes a speculation which is usually 
not undertaken unless line rates seem to be exorbitant or a short- 
age in line tonnage occurs, A tramp may, however, be put on the 
berth for cargoes destined to ports which are not as yet served 
by regular lines. Shippers who charter a vessel for a full cargo 
and are required to pay th^ owner on that basis sometimes put 
the vessel on the berth to fill available space not occupied by the 
cargoes of the charterers. 

Tramps are at times chartered by regular lines to operate in 
the line service. A line may need one or more additional vessels 
during the season when its traffic is heaviest ; or it may own a 
part of its fleet and regularly operate chartered vessels in its line 
service; and there are steamship lines with entire fleets consist- 
ing of chartered vessels. Cargo vessels are in this way with- 
drawn from the tramp service by cargo lines, and passenger 
steamers are sometimes chartered by passenger lines. 

As cargo vessels, when operating as tramps, for the most part 
carry full cargoes of heavy, bulky commodities they are not 
always in direct competition with the regular lines. The two ser- 
vices, however, are not wholly non-competitive, for lines fre- 



OCEAN SERVICES AND TRAFFIC AGENCIES 13 

quently seek heavy, bulky commodities either as part of their 
regular cargo or as berth cargo, and tramp vessels are sometimes 
put on the berth for the type of cargo that is ordinarily carried 
by the lines. Each has certain competitive advantages. The 
capital and operating costs of tramps are less than those of the 
regular lines. Tramp vessels are built for economy and freight 
capacity; they are usually of average size, speed, and draft, and 
are fitted to carry large cargoes not requiring specialized equip- 
ment. Tramp ovi^ners and operators need not provide themselves 
with or make permanent arrangements for expensive docks, 
wharves, warehouses and other port facilities. They need not 
expend large sums on advertising or maintain permanent domes- 
tic and foreign branch offices, district offices and agents. The 
extensive business organization needed by lines is not duplicated 
in the tramp service, for the tramps depend largely upon ship 
brokers for their charterers or cargoes. Their office organiza- 
tion for planning and directing operations and for other pur- 
poses, and the services performed by ship brokers are discussed 
in Chapter IV. 

The tramps, however, are at a disadvantage in certain 
respects as compared with the lines with whom they sometimes 
compete. They are not adapted to transport the profitable high 
class freight which moves in less than full cargoes and requires 
rapid delivery ; nor do they share in the passenger and mail 
business. They do not have the business organization needed for 
the regular transportation, handling and solicitation of general 
cargo traffic and they have no clientele of regular patrons. When 
competing against lines for grain which is frequently bid for by 
the latter as berth cargo, they face the disadvantage of having 
to depend entirely upon the cargo of grain for the profits of their 
voyage, while the lines depend mainly upon their regular cargo 
and passengers which are largely booked before their vessels are 
put on the berth. As the flow of traffic over particular given 
routes becomes heavy and regular the advantages of the lines 
increase, but the tramps continue to carry a large share of the 
world's ocean freight traffic. 

'^, Private or Industrial Bulk Carriers 

Although most ocean cargoes are now carried in tramps or 
line vessels there is a tendency on the part of various industrial 



14 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

and mercantile concerns to provide themselves with vessels 
which they operate primarily to carry their own raw materials 
or finished products. The private transportation service which 
they obtain corresponds in a degree to that rendered during the 
early years of American shipping when large merchant traders 
and groups of smaller merchants and shippers provided them- 
selves with privately owned and operated vessels. The entire 
merchant marine was operated privately for many years; com- 
mon carriers. did not become the rule in ocean traffic until after 
the War of 1812. 

The so-called private or industrial bulk carriers of to-day are 
mainly specialized vessels operated by large industrial concerns 
to transport commodities such as ore, coal, lumber and lumber 
products, asphalt, and mineral oils. It is sometimes difficult 
even in these trades to distinguish this type of service from that 
of tramps or liners because the privately operated vessels at 
times carry cargoes for other shippers to fill available cargo space 
on outbound voyages or to obtain return cargoes. The line of 
distinction becomes less clear when the ocean transportation 
services operated by export and import merchants are considered. 
The lines operated by some of them, although used to transport 
their own cargoes, so generally accept and solicit the cargoes 
of other shippers that they are everywhere regarded as perform- 
ing a regular line service. 

Privately operated or industrial bulk carriers differ funda- 
mentally from tramps and regular lines in that they are primarily 
used to carry the cargoes of their owners or operators. "The 
advantages accruing to the private concerns operating them are 
(a) the use of speciaHzed equipment, (b) the exact degree of 
regularity and frequency of service desired, (c) a reduction in 
some instances of the firm's transportation bill, and (d) more 
complete control over a particular industry or trade in so far 
as its control may depend upon ocean transportation facilities." ^ 
Ocean steamship services of this kind are variously managed by 
the industrial concern through a steamship department directly 
connected with its main business organization; through a sub- 
sidiary steamship company; or through an outside steamship 
agent. 

' E. R. Johnson and G. G. Huebner, Principles of Ocean Transportation, 
p. 152. 



OCEAN SERVICES AND TRAFFIC AGENCIES 15 

Steamship Traffic Agencies 

In the preceding account of ocean transportation services fre- 
quent mention was made of agencies which are intimately as- 
sociated with steamship operation and traffic management. The 
owners of line vessels frequently turn the management of their 
traffic and sometimes their entire operation over to steamship 
agents who may also undertake the operation of lines on their 
own account. There are "general steamship operators" who not 
only act as steamship agents but engage in many branches of 
steamship activity, line as well as tramp. There are a vast num- 
ber of "freight" and "passenger agents" who work for steamship 
lines under contract on a commission basis. There are "ocean 
freight brokers," "forwarders," "contractors" and "foreign ex- 
press companies"; "custom house brokers" and "customs attor- 
neys" ; trucking and lighterage companies ; dock, wharf, ware- 
house and terminal companies ; "ship brokers," "managing own- 
ers" and other tramp operating concerns ; stevedores ; marine in- 
surance companies and underwriters ; all of which are parts of 
the present day organization for steamship operation and traffic 
management. Those which are primarily traffic agencies are dis- 
cussed in subsequent chapters, and others are described in other 
manuals of this series. 

The railroads are also a factor in steamship traffic manage- 
ment. They carry ocean cargoes to and from the interior on 
railroad or through export bills of lading, and at domestic or 
special import and export rates, and occasionally at through or 
joint rates. They provide ocean terminal facilities of various 
kinds at many ports ; they perform lighterage and other port 
services; and establish railroad demurrage and storage rules and 
other traffic regulations of importance both to ocean shippers and 
carriers. Some of them have foreign freight departments 
tlirough which import and export traffic is developed and for- 
warding services are performed. At a number of ocean ports 
steamship lines and railroads are parties to preferential rail- 
ocean traffic contracts which variously provide that the steam- 
ship line's steamers shall load and discharge at the wharves 
owned by a particular railroad, that the railroad will provide 
wharfage facilities free of charge, and that the steamship line 
and the railroad will mutually endeavor to promote the inter- 



16 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

change of their traffic, each giving preference to the other so 
far as it may lawfully do so. Additional clauses sometimes fix 
the number of vessels to be operated ; call for the protection of 
rates on competitive traffic as against other lines or ports, and 
govern other master of mutual interest. The closest relation 
between the rail and ocean transportation services exists in those 
instances where railroads own and operate or directly control 
steamship companies and vessels.^ 

Mention should also be made of the various concerns that are 
purely operating agencies as distinct from those that are a part 
of or closely connected with the traffic organization of steamship 
companies. They include agencies such as towing companies, 
bunker coal and fuel oil concerns, pilots, ship supply merchants, 
dry dock companies, and underwriters' surveyors. 

Ocean Conferences and Associations of Steamship Owners 
OR Shipping Interests 

This bird's-eye view of steamship traffic management would not 
be complete without mention of the various organizations through 
which individual steamship services and agencies are affiliated 
w^ith each other. Most steamship lines engaged in any particu- 
lar trade are brought together in so-called "ocean conferences" 
to agree on many of the most important phases of traffic man- 
agement. Some of the conferences are formal organizations, 
while others consist of informal working arrangements ; and their 
agreements range from signed agreements to oral understandings. 
They variously control line rates and frequently administer 
traffic or money pools ; allot ports, sailing dates, number of sail- 
ings or the amount of tonnage; regulate the commissions and 
practices of freight and passenger agents; and otherwise govern 
the relations between member lines and their competition with 
non-members. As is more fully described in Chapter V ocean 
conferences are also found in the chartered service, but the con- 
trol exercised by them has always been less far reaching and 
effective. There, moreover, are steamship associations through 
which owners or operators endeavor to standardize charter 

• An account of "Cooperation and Combination of Ocean and Rail 
Carriers" is given in Chapter XX of the Principles of Ocean Transporta- 
tion by E. R, Johnson and G. G. Huebner. 



OCEAN SERVICES AND TRAFFIC AGENCIES 17 

parties, port regulations, etc., and to cooperate in other matters 
of mutual interest. 

Many of the agencies connected with ocean shipping are also 
affiliated in associations or special organizations. Many freight 
agents, brokers and forwarders are members of freight brokers' 
associations. Stevedores, tally clerks, and truckmen are usually 
members of unions. The pilots of a particular port are usually 
members of a pilots' association. 

At many ports there are also general organizations with a 
membership including a wide range of shipping interests. Mari- 
time exchanges and the chambers of commerce and produce ex- 
changes located at some of the ports perform important ocean 
shipping functions.* 

Government Authorities and Steamship Traffic Manage- 
ment 

The management of steamship traffic is not left entirely to 
the individual or cooperative action of those engaged in ocean 
shipping. The Federal departments, bureaus, boards, commis- 
sions and authorities referred to in Chapter XVII are important 
links in the general traffic and operating organization. So too 
are the local authorities, — state, municipal or public trust, — that 
administer the ocean ports ; and the foreign consuls and customs 
authorities who administer the consular regulations of foreign 
countries in so far as they apply to the trade and shipping of 
the United States. 

* See pp. 53, 54. 



CHAPTER II 

ORGANIZATION OF THE FREIGHT TRAFFIC DEPARTMENT 
OF A STEAMSHIP LINE 

The business organization of every steamship line or steam- 
ship agent in charge of the management of a regular line carry- 
ing freight cargoes in the overseas trade contains a Freight Traf- 
fic Department through which the line's or steamship agent's com- 
mercial or traffic functions are performed. It has charge of the 
making of freight rates; of the issue and distribution of tariffs 
or rate cards or instructions as to what charges are in effect; 
of the solicitation and development of freight traffic and the 
booking of cargoes; the issue of freight contracts, bills of lad- 
ing, parcel receipts, shipping permits, arrival notices and other 
shipping documents described in subsequent chapters; and of 
the entry and clearance of vessels, and to some extent of car- 
goes at the custom house. It selects cargo so as to swell the 
profits of each voyage so far as possible, and considers the rela- 
tive space to be occupied by cargo and fuel. It recommends the 
establishment of new or the alteration of old services; it ex- 
amines into the traffic suitability of vessels which the owner con- 
templates purchasing, chartering or constructing. 

There is no uniformity among steamship lines or agents as to 
the organization of the freight traffic department, for the volume 
of business varies everywhere from that of the small lines oper- 
ating a few vessels to that of the giant steamship companies or 
agents operating fleets exceeding a million tons gross register. 
There are steamship consolidations and steamship agents who 
manage a number of steamship lines serving many ports and 
operating over different routes. 

The size of the freight traffic department is bound to be ad- 
justed to the volume of its business and the number of lines 
operated, and the subdivision of functions among separate traffic 
officials and employees is adapted to these considerations and to 
the views of the owners or company directors and executive of- 

i8 



FREIGHT TRAFFIC DEPARTMENT 



19 



ficials as to how the necessary work can best be performed. The 
freight traffic organization contained in the accompanying chart 
|(No. Ill) is that of a typical large steamship line or steamship 



Chart III 



FREIGHT TRAFFIC DEPARTMENT OF LARGE STEAMSHIP LINE 



Freight Traffic 
Manager 




— p 

^ 



2nd Asst.E of L. Clerks 



3-4 Freigh,t Manifest 
Cleilts 



J Junior Permit Clerks 



Clearance Clerks 



Junior Clerks 
Stenographers, Boys 



Ifrlvate Secretary] 



2nd Asat.PreJBht Traffic 

ManagBr 

In Bound Treight 



-j Traffic Specialist I 

-c 
-c 



3 or 4 Junior Clerks for 
l-l Misc. Work. Ereight 
Oalcnlatlons, Filing, etc, 



Head of Freight Dept. 
District Office 



3-5 Junior Clerks 



OleTical Staff 



Freight Agents 
Members of Associ- 
ation of Freight Brok- 
ers with Seat on Pro- 
duce Exchange 



S&oioT aod Junior 
Clerks' of ffreight - 
Agents 



Clerical Staff -■ 



Freight Offices 
Abroad 



Seaboard 
Offices Outside N.Y 



Clerical Staff 



Freight Agent 



Freight Agent 
I Freight Solicitor [ ~ [ Asst. Freight Agent 
[Bill of Lading Clerk" 



Manifest Clerks 



Permit Clerks 



Chart prepared hv Dr. R.S.MacElwee 



agent. When studied with a view to determining who performs 
a particular kind of traffic work or the possible lines of promo- 
tion for traffic employees it should be borne in mind that the 
Freight Traffic Department of every steamship line or agent 



20 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

varies in detail and that the traffic organization of a small line 
is less extensive. 

Freight Traffic Manager 

The traffic organization of many large steamship lines is di- 
vided into two parts v^hich handle freight and passenger traffic 
respectively. In such an organization there may be a Freight 
Traffic Manager and also a Passenger Traffic Manager each with 
a separate department. A smaller line or one less extensively 
engaged in the passenger business is apt to have a Traffic Man- 
ager who is in charge of both freight and passenger traffic man- 
agement, the work under his supervision, however, being largely 
subdivided among separate traffic officials and employees. 

The Freight Traffic Manager not infrequently ranks as a Vice- 
President because the department under his control is one of 
great importance to the successful operation of a steamship line. 
His department may be so large that to relieve himself of de- 
tailed supervision and to obtain the expert assistance of efficient 
traffic men it will be divided between two responsible assistants, 
an Assistant Freight Traffic Manager in charge of outbound 
freight, and another Assistant Freight Traffic Manager in charge 
of inbound freight. These traffic officials are sometimes known 
as Outbound and Inbound Freight Managers, or by other appro- 
priate titles. Many steamship traffic organizations provide for 
no Assistant Freight Traffic Managers but place one or more 
General Freight Agents under the General Traffic Manager or 
General Freight Traffic Manager. The General Freight Agents 
may be in direct charge of outbound or inbound freight or in 
charge of the freight traffic work connected with separate lines 
operating over different routes or from different ports. 

The making of freight rates by the General Freight Traffic 
Manager and the assistants mentioned above requires many con- 
sultations on their part and the compilation of rehable informa- 
tion as to commercial needs, active and potential competition, 
steamship costs and other matters referred to at length in sub- 
sequent chapters on rate-making. The rates of most ocean lines, 
moreover, are made in accordance with agreements and under- 
standings, and the General Freight Traffic Manager or his assis- 
tants perform the responsible work of negotiating with other 
lines through the ocean conferences of which most of the steam- 



FREIGHT TRAFFIC DEPARTMENT 21 

ship lines engaged in the foreign trade are members. The ac- 
tivities of these ocean conferences are described in Chapter V. 
Having decided upon freight rates the General Freight Traffic 
Manager sees that the proper tariffs and current instructions are 
given to the company's freight agents, district officers, solicitors 
and brokers. 

The General Freight Traffic Manager also determines the 
policies of the line with respect to the development of its freight 
traffic. He directs and supervises the freight offices or agents 
of the line at the ports of the United States, those in charge of 
district offices, and those performing the line's traffic work 
abroad. 

Should he decide that the line's traffic warrants the running 
of additional steamers, or that the company's interests would be 
furthered by establishing services over routes or at ports not 
formerly served by the line, he makes appropriate recommenda- 
tions to the owners. If it is decided that an additional vessel 
should be purchased or constructed his recommendation consti- 
tutes an important guide to the owners as to its suitability for 
the trade. A careful examination is made of the "vessel's par- 
ticulars" and of blue prints showing its deck arrangement and 
its holds and cargo handling equipment.^ 

The Freight Traffic Manager of a large line usually has a 
private secretary. While this employee does stenographic work, 
the nature of his position directly in an executive's office re- 
quires him to possess discretion, personality and alertness of 
mind, and offers to him a promising avenue for advancement. 
He has an opportunity to learn the executive end of the steam- 
ship business, and an insight into the forces and considerations 
that shape the general policies of the company. He comes into 
personal contact with the head of the Freight Traffic Department 
and those of practically all other departments in the organiza- 
tion; and with the board of directors and the many important 
business men who call at the Freight Traffic Manager's office for 
conference. To be of maximum assistance to the company he 
must have the ability to grasp both the detail and the general 
aspects of the work for which the Freight Traffic Manager is 
responsible. 

* For full discussion of types of vessels and their uses see the manual 
of this series on Merchant P^essels by Dr. Robert Riegel. 



22 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Outbound Freight Traffic Manager 

The official immediately under the General Freight Traffic 
Manager in charge of outbound freight, who may be the Assistant 
Freight Traffic Manager, the Outbound Freight Traffic Manager, 
or a General Freight Agent, cooperates with him in the making 
of rates and in formulating traffic development policies. He 
also has immediate charge of the supervision of the outbound 
traffic organization of the line. He directs the booking of freight, 
so as to properly balance cargo space against space set aside for 
fuel, stores and supplies, with a view to obtaining maximum re- 
ceipts. When cargo is scarce a line vessel not infrequently sails 
with as much as one third of its space unoccupied, but when 
cargo is plentiful an effort is made to swell its receipts by the 
efficient and profitable use of the vessel's carrying capacity. 
Heavy cargo, which is carried on the weight basis, moreover, is 
then balanced against general cargo which weighs little but is 
carried on the basis of so much per measurement ton of 40 
cubic feet or per cubic foot. A given vessel may, for example, 
have a cubic capacity for 5,600 tons of 40 cubic feet as com- 
pared with a weight capacity of 6,200 tons of 2,240 pounds. 
Careful choice of cargo may result in the booking of 2,400 tons 
of heavy weight cargo and 4,100 tons of measurement cargo, 
or a total of 6,500 tons of profitable cargo. 

The booking office, therefore, requires direction, and a freight 
engagement record must be kept so that the amount of freight 
that has been booked can be ascertained at any time. The permit 
clerks who issue permits to shippers telling them when their 
cargo may be delivered at the pier, moreover, need to be given 
instructions as to when cargoes should be ordered forward. 
There is a direct connection between the proper loading and dis- 
charging of cargo by the Wharf Department and the efficiency 
with which it is ordered forward by the Freight Traffic Depart- 
ment, Piers or ships should not be congested with cargo and 
lighters, and the pier superintendent should not be hindered in 
stowing cargo "with dispatch and with due consideration to 
the order of discharge at ports of delivery. . . . Exceptionally 
heavy cargo, such as rails or heavy lifts, should be stowed either 
in the very bottom of the lower holds or on the floors of the 
'tween decks. If steel rails are being shipped to Rio de Janeiro, 



FREIGHT TRAFFIC DEPARTMENT 23 

for example, they can be stowed to best advantage in the 'tween 
deck. 'Net' cargo, such as kerosene oil, must be stowed if 
possible in compartments not used for other cargo; all inflam- 
mables must be stowed in holds not immediately adjacent to the 
boiler room. . . . Heavy cargoes must not be stowed in such 
position with relation to fragile packages as to cause danger of 
damage by the shifting of the cargo as a result of the movements 
of the hull in the leeway. These and literally hundreds of other 
details, must be given consideration so far as is possible, not 
only in stowing but in ordering the cargo forward by rail, truck 
or lighter." ^ 

Letters of instruction to the agents at ports of call are also 
drawn up by the head of the outbound freight department so far 
as freight cargo is concerned, for the approval of the Freight 
Traffic Manager. If the vessel carries passengers similar in- 
structions are prepared by the Passenger Traffic Manager or 
under his direction. The instructions to agents not fully famil- 
iar with the line's wishes are comprehensive, but when the traffic 
department has full confidence in the agent's judgment the letter 
of instructions merely calls attention to the amount of cargo, the 
number of passengers, and any matters calling for special atten- 
tion. These instructions are frequently included in the cable- 
gram which announces the saiHng date. If any cargo is left 
ashore after being included in the ship's manifest the agent's 
attention is called to it in the letter of instructions. One or more 
copies of the ship's manifest which lists the entire cargo des- 
tined to the agent's port, and copies of the bills of lading which 
cover each shipment are sent with the agent's instructions. 

"A similar letter of instructions must be written to the master, 
with an explicit statement of all matters pertaining to the con- 
templated voyage. With such instructions the master receives a 
complete set of manifests and bills of lading, which may be used 
en route in conjunction with the tally sheets (received from the 
Wharf Department) . . . for the purpose of making up the 
ship's cargo books. These instructions to both agents and masters 
are usually made by the Traffic Manager or under his super- 
vision. Separate letters of instruction may be written by the 
Marine Superintendent and Purchasing Agent, but generally 

* Statement by Mr. J. A. Slechta. For details as to stowage see manual 
of this series on Wharf Management, by Dr. R. S. MacElwee and Mr. 
T. R. Taylor. 



24 OCEAN STEAI^ISIIIP TRAFFIC MANAGEMENT 

particulars to be included iu a general letter are given by these 
officials to traffic officials charged with this detail of adminis- 
tration." » 

Clerical and Soliciting Staff in Outbound Freight De- 
partment 

Chief Bill of Lading Clerk. — Under the Assistant or Outbound 
Freight Traffic Manager there is a chief bill of lading clerk who 
signs the steamship company's bills of lading. He holds the most 
important place in his clerical staff, for the bill of lading, which 
is more fully described in Chapter VII, is the principal shipping 
document in the business of ocean line transportation. It not 
only is the final receipt to the shipper, but it is the official ship- 
ping contract; it gives title to cargo covered by it, and when 
made out to the order of the shipper is a negotiable instrument 
which is frequently used by the shipper in financing his export 
transaction by means of drafts or international bills of exchange. 

The chief bill of lading clerk obtains authority to sign bills 
of lading direct from the Board of Directors, for their validity 
depends upon signature by one who has been authorized to sign 
for the company. To guard against fraudulent bills of lading 
the signature of the chief bill of lading clerk is kept on file at 
the offices of the company's agents in the United States and 
abroad. 

Assistant Bill of Lading Clerks. — In the business organiza- 
tion of a large steamship line or steamship agent there are 
usually two or three assistant bill of lading clerks who prepare 
the bills of lading for signature. They check them against the 
dock sheets obtained from the Wharf Department and the dock 
receipts which the shipper is asked to return when he presents 
the bills of lading for signature. They verify the calculations 
contained in the bills of lading; they compare rates with the 
tariffs or rate tables with which they are provided; and they in- 
sert special clauses into the contract in case notations are found 
on the dock sheets or dock receipts or other circumstances make 
it necessary. They need to have knowledge of ocean freight 
rates, of the clauses contained in the company's bills of lading 
and of the consular requirements regarding bills of lading en- 
forced by the foreign countries to which the line operates. 

^ Statement by Mr. J. A. Slechta. 



FREIGHT TRAFFIC DEPARTMENT 25 

Manifest Clerks. — The preparation of the ship's manifests, 
which contain an accurate list of the vessel's entire cargo, usually 
requires the services of three or four manifest clerks. Their 
work is of a responsible character for the ship's manifest is not 
only an important operating, clearance, entry and accounting 
document, but its preparation is required, and its form and con- 
tent is regulated by the Government of the United States and 
foreign countries.^ 

Speed and accuracy are essential in the work of manifest 
clerks. They do not begin their work for a given steamer until 
its loading is far advanced for they need to wait until a consider- 
able number of bills of lading for a particular port are ready 
for delivery to the shipper. Nevertheless the completion of their 
manifests may not be delayed because they are required in clear- 
ing the vessel at the custom house. The United States Govern- 
ment requires that "a complete manifest be filed on the next day 
after the clearance of the vessel." Accuracy is essential because 
consular regulations penalize inaccuracies and in many instances 
prohibit erasures or corrections. With copies of the bills of 
lading and exporters' declarations before them, the manifest 
clerks work with dispatch and accuracy. They are in many in- 
stances provided with special billing typewriters that readily 
take the large f®rms on which ships' manifests are prepared and 
enable them to prepare the necessary number of copies at one 
writing. 

Permit Clerks. — The shipping permits referred to above and 
more fully described in Chapter VII are issued by permit clerks 
under the direction of the head of the Outbound Freight De- 
partment. They are junior clerks of the department and in the 
organization of a large line or steamship agent there may be 
one or two for each service. They prepare the permits on the 
standardized forms of the company and carry them through to 
the shipper or his forwarding agent. 

Clearance Clerks. — The work of carrying through and pre- 
paring the documents needed in clearing vessels at the custom 
house is usually performed by manifest or junior bill of lad- 
ing clerks. Some lines, however, have special clearance clerks 
for this work and the actual clearance of the vessel at the custom 
house is frequently handled through a custom house broker with 

*Uses and contents of ship's manifest are described in Chapter VII. 



26 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

whom the Hne has a standing arrangement for vessel entry as 
well as clearance. The required documents and formalities inci- 
dent to clearance are discussed in Chapter VIII, which deals 
with shipping documents required by the United States Govern- 
ment. 

Other Clerks and Oifice Employees. — During the war the Out- 
bound Freight Department of large lines had license number 
clerks, for the shippers of most commodities were required to 
obtain export licenses, in some instances from the United States 
War Trade Board or its branch offices and in others from the 
Customs Collector, and the steamship lines were not permitted 
to clear vessels with cargo not covered by the required license. 
The department also has a number of junior clerks for general 
office clerical work, and the necessary number of stenographers 
and office hoys. 

Traveling Freight Agents. — Directly connected with the Out- 
bound Freight Department there usually are a number of travel- 
ing freight agents who are its salesmen or freight solicitors. 

Branch Offices and Agencies 

Every cargo-carrying steamship line maintains freight agencies 
or branch offices which are of the greatest importance in the 
development of its traffic and the handling of its freight business. 
They are in many instances directly responsible to the Freight 
Traffic Manager because they are concerned with inbound as 
well as outbound traffic, but most of their dealings are with the 
Outbound Freight Department, 

Branch Seaboard Offices. — Besides the main traffic office lo- 
cated at the port at which the principal freight services of a 
line are performed, branch offices may be maintained at other 
ports in the United States. If the volume of business is small 
there is less separation of functions among different groups of 
clerks than at the main office of the Outbound Freight Depart- 
ment, several functions being consolidated under one person. 
Large branch offices, however, have freight agents and assistant 
freight agents, chief bill of lading clerks and assistant or junior 
bill of lading clerks, manifest and permit clerks with duties simi- 
lar to those of the corresponding agents and clerks in the main 
outbound freight office. 



FREIGHT TRAFFIC DEPARTMENT 27 

Freight Department District Offices. — In the district offices 
maintained by steamship lines at the larger interior cities there 
is in each case a freight department. The head of the freight 
department of a district office has a staff of senior and junior 
clerks for the solicitation and booking of freight and the bill- 
ing of cargoes to the vessel and to foreign destinations. 

Freight Agents. — Steamship lines usually do not depend en- 
tirely upon their traveling freight agents, solicitors, port freight 
agents and district freight agents for the solicitation of freight. 
Much of their freight is obtained through freight agents who 
work on a commission basis and are bound by contract. Such an 
agent maintains his own staff of bill of lading and other clerks 
and stenographers, the size of his staff depending upon the 
volume of business transacted. There are many freight agents 
of this kind at interior shipping points and the ports. They act 
as freight brokers for the lines with which they have connections, 
and obtain their commission from the lines because they secure 
freight for them. Yet they also serve the shipper in that they 
engage cargo space for him, issue bills of lading, and keep him 
informed as to freight rates and steamship service. They are 
usually members of approved freight brokers' associations, and 
many of them are members of the New York Produce Exchange. 

Much freight is obtained through ocean freight forwarders, 
who act not only as freight brokers but as agents for shippers 
in the actual shipping or forwarding of cargoes. The business 
of freight brokerage and forwarding is so important in ocean 
shipping that a more detailed account is given in a subsequent 
chapter." 

Freight Offices Abroad. — As steamship lines need representa- 
tion at foreign ports, some of them maintain foreign branch of- 
fices in which there are freight departments. A freight traffic office 
similar to that of the home office, but on a smaller scale, per- 
forms the usual traffic functions under the supervision of the 
branch office manager. In many instances, however, arrange- 
ments are made with foreign agencies which are not directly 
a part of the line's own organization, although they may be so 
closely connected with the line as to virtually become branch 
offices. These foreign agencies maintain their own traffic organi- 
zation. They have the usual clerical staff and appoint freight 
^ Chapter VI. 



28 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

agents and solicitors throughout the territory in which they do 
business. Since these agencies are separate from the line's own 
traffic organization there is little interchange of personnel be- 
tween them and the line's home offices. It has, in fact, been the 
custom even at actual foreign branch offices and at the district 
offices maintained in the United States to develop a local staff 
and to promote clerks and agents within the offices rather than 
to interchange personnel with the home office. It is the excep- 
tion rather than the rule to place a man direct from the home 
office at the head of a branch or district office, because effective 
freight solicitation depends largely upon an intimate knowledge 
of local business conditions and acquaintance with shippers. 

The Inbound Freight Department 

The Inbound Freight Department has charge of traffic work 
connected with the entry of inbound vessels and the delivery of 
imported cargoes, and with the development of return freight. 
The head of the department in a large line may be an Assistant 
Freight Traffic Manager, an Inbound Freight Traffic Manager 
or a General Freight Agent. In a smaller organization than that 
shown in the accompanying chart there may be no distinct 
Inbound Freight Department, the traffic work incident to arriv- 
ing vessels and cargoes being handled by a group of inbound 
freight clerks under the supervision of the same official who 
is responsible for outbound traffic work, and the development 
of return freight being handled by the same agents or solici- 
tors who solicit outbound freight. 

The Inbound Freight Department, even in case of a large 
steamship line, is usually smaller than the Outbound Freight 
Department, because most of the solicitation of inbound freight 
is done abroad by the freight branch offices or agencies men- 
tioned above. They also handle the booking of return cargoes, 
the issuing of shipping permits, bills of lading, and ship's mani- 
fests, and the preparation of clearance papers at the foreign 
ports, while the corresponding work in the case of outbound 
freight is performed by the Outbound Freight Department in 
the United States. 

The Inbound Freight Traffic Manager of a large line may, 
however, have under his direction a number of inbound freight 



FREIGHT TRAFFIC DEPARTMENT 29 

solicitors who endeavor to obtain freight from abroad. The 
routing of imports to the United States is not always left to the 
foreign exporter; the importer located in the United States may 
prefer one available line to another and may be in a position 
to give effect to his preference or at least make known his wishes 
to the foreign shipper. 

The inbound freight clerks under the direction of the Inbound 
Freight Traffic Manager or other official acting in that capacity 
usually include several tariff specialists or senior clerks and 
several junior clerks whose duties are mainly with the custom 
house. They are concerned with the preparation of the vessel 
entry papers described in Chapter VIII and they see that the 
master with the ship's manifest, copies of consular invoices, the 
crew list, consular bill of health, etc., enters his vessel at the 
custom house.^ As in the case of outbound clearance, however, 
the actual entry of the vessel at the custom house may be left 
to the master of the vessel and a licensed custom house broker 
engaged for this purpose by the company. Although the im- 
porters or their agents are responsible for the entry of their 
imported cargoes at the custom house, custom house brokers gen- 
erally being engaged by them for this highly technical work, 
the Inbound Freight Department of a steamship line sends a 
notice of arrival to the consignee so that he may know when to 
settle with the steamship company as well as with the custom 
house. It also notifies the custom house of the date on which 
it is desired that "general order" shall expire. After this date 
cargo for which the customs authorities have not issued permits 
to the consignee may be removed from the vessel or pier only on 
their order and by bonded truckmen, who take them to the gen- 
eral order stores of the custom house. Inbound cargoes, more- 
over, may be intended for transportation to interior points in 
the United States, for storage in bonded warehouses, or for 
transshipment to other steamship lines for reexportation, and 
the necessary arrangements with the custom house need to be 
made by the clerks of the Inbound Freight Department or by 
custom house brokers. 

The Inbound Freight Department also receives the original 
negotiable copy of the bill of lading or a bond vouching for 
its production. Several junior clerks are engaged in making 

* Ship's papers and entry documents are described in Chapter VIII. 



30 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

freight calculations and after the consignee or his agent has 
paid the amounts due to the company's Cashier his cargo will 
be released to him by the company, provided he has received 
the necessary permit from the customs authorities. The Inbound 
Freight Department first sends a notice of arrival and freight 
bill and makes entry in a book of record. After the cargo is 
ready for delivery to him it sends a final notice of arrival, and 
after he has settled any amounts that have not been prepaid it 
sends a delivery order w^hich he presents to the Wharf Depart- 
ment. If all freight has been prepaid, however, the delivery 
order may be sent with the arrival notice, or as soon as the 
original bill of lading is surrendered by the consignee. Copies 
of these delivery documents which are issued in the Inbound 
Freight Department are reproduced and described in Chapter 
VII. 

Junior clerks are also employed for filing and general office 
work, and the department has a stenographic staff. 

Connection of Freight Traffic Department with Other 

Departments 

In performing its functions the Freight Traffic Department 
comes into frequent contact with other departments in the com- 
pany's business organization. The Cashier's office, which is part 
of the Treasurer's Department, verifies the freight calculations, 
initials the outbound bills of lading received from the bill of 
lading clerks and holds the bills of lading until he receives from 
the shipper or his agent the amounts that are to be prepaid. The 
Cashier also receives from the Inbound Freight Department the 
bills of lading delivered by the consignees and holds them until 
the amounts to be collected are paid. Assistant cashiers and 
cash book keepers responsible to the Cashier are usually located 
both in the Freight and Passenger Traffic Departments. The 
funds received by the Cashier and originating in the Freight 
Traffic Department, moreover, are audited under the supervision 
of the company's Auditor, whose office is part of the Account- 
ing or Comptroller's Department. 

Almost continual cooperation is required with the Wharf 
Department, which receives and delivers cargoes and has charge 
of loading and discharging. The Outbound Freight Department 



FREIGHT TRAFFIC DEPARTMENT 31 

receives dock sheets and stowage plans from it and sends to it 
copies of the shipping permits issued to shippers by the permit 
clerks. The dock receipts, moreover, which are frequently, 
although not always, returned to the bill -of lading clerks by the 
shippers, are issued by the Wharf Department and its receiving 
clerks may make important notations on them. The delivery 
orders issued by the Inbound Freight Department to consignees 
and presented by them or their agents at the piers are, with 
the permits obtained from the customs authorities, the basis on 
which the Wharf Department releases inbound freight. 

When a close decision is made regarding the relative spaces 
in a vessel for cargo or fuel, cooperation with the Superintendent 
Engineer becomes necessary. When the suitability of a vessel 
for a trade is under consideration the Freight Traffic Depart- 
ment cooperates with the Marine Superintendent, and if it 
carries passengers as well as freight cargoes, also with the 
Passenger Traffic Department. When a vessel is chartered for 
the use of the line, conferences are held with the Chartering 
Department Manager, in case the company's organization con- 
tains such a department. Similarly, conferences are had with 
the Passenger Traffic Manager and with the Manager of Opera- 
tions when the desirability of recommending an extension or 
change in the company's steamship services is under consideration. 



CHAPTER III 

ORGANIZATION OF THE PASSENGER TRAFFIC DEPARTMENT 
OF A STEAMSHIP LINE 

Many of the regular steamship lines engaged in the overseas 
trade carry passengers as well as freight cargoes, although the 
majority of the passenger-carrying lines depend upon freight 
as their principal source of revenue. The volume of passenger 
traffic on the routes to the Far East, to Australasia, to South 
and Central America, to the West Indies, and to Africa has not 
been sufficiently heavy to warrant the regular operation of ves- 
sels designed primarily for passenger accommodations. The 
relative extent to which passenger liners on these routes carry 
passengers and freight depends directly upon the total volume 
of traffic available. 

In 1914, just before the full effect of the war in Europe was 
felt, 1,002,602 ocean passengers were reported as departing from 
the seaports of the United States and 1,689,667 as arriving, mak- 
ing a total of 2,692,269. Of this passenger traffic 61.3 per cent, 
was centered at the North Atlantic ports, and normally they 
handle over 90 per cent, of the total. Their share in 1912 was 
95 per cent, and in 1913, 96 per cent. The bulk of this heavy 
passenger traffic has normally moved over the North Atlantic 
steamship routes between the North Atlantic ports of the United 
States and the ports of Great Britain and the Western and 
Southern European countries. 

It was because of this concentration of the passenger traffic 
that it was possible to operate the world's greatest passenger 
liners on the North Atlantic routes. Their passenger traffic was 
sufficiently heavy to warrant the operation of steamers of un- 
usual size, speed, costliness, excellence of equipment, and extent 
of passenger accommodations. To many of these lines the pas- 
senger traffic has been of vast importance, and has resulted in 
the organization of extensive Passenger Traffic Departments. 

32 



PASSENGER TRAFFIC DEPARTMENT 



33 



The organization shown in the accompanying chart (No. IV) 
is that of a typical large North Atlantic passenger line. The 
Passenger Traffic Department of a line carrying a smaller vol- 
ume of passenger traffic is necessarily less extensive. It performs 
all of the functions of the larger organization but subdivides 

Chart IV 



PASSENGER TRAFFIC DEPARTMENT OF A LARGE STEAMSHIP LINE 

[Passenger Traffic Manager J 



Oabln Dept. 



I Private Secretary | 



Asst. Passenger 
TrafiSc Manager 



I Private Secretary | 



Main Office 
' — I Booking Clerks | 

— I Landing Clerks | 



— I Railroad Booking Clerks | | Afloat Pursers | 

— I Tourist Department | 



I Steerage Department j 



I Booking Clerks f 



I Landing Clerks \- 



j Publicity Department 



Bailroad Booking 
Clerks 



— I Supply Department [- 



Junior Clerks, 

Stenographers, etc. 



Junior Clerks, 
Stenographers, etc. 



them less minutely among separate passenger traffic officials, 
agents and department employees. 



Passenger and Assistant Passenger Traffic Manager 

The head of the Passenger Traffic Department of a large line 
is the Passenger Traffic Manager, who generally supervises the 
entire department, administers certain parts of it specifically, 



34 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

decides on the general policies to be pursued, and performs a 
number of definite traffic functions. Among the latter is the 
making of passenger fares. Those in the cabin service are 
usually directly under his charge. Since on the North Atlantic 
routes the minimum cabin fares are made by the various lines 
in agreement, he performs the important work of attending con- 
ference committee meetings. To represent his line efficiently it is 
necessary that he have at his command accurate information as 
to volume of traffic, receipts and expenses, competitive influences, 
and traffic needs and limitations. He needs to confer with the 
heads of other departments and with the agents and staff who 
handle the details of passenger traffic or come into contact with 
the traveling public. The cabin fares agreed upon have usually 
been minimum fares, the actual fare when above this minimum 
being determined by him in the interest of his company subject 
to such requirements as may be imposed in the conference 
agreements. 

In making steerage fares the Passenger Traffic Manager has 
the immediate assistance of the Assistant Passenger Traffic 
Manager who is usually in charge of the steerage or third class 
passenger service. In the North Atlantic trade these fares are 
also made in agreement with the various conference lines. The 
steerage traffic of the trans-Atlantic lines has, moreover, been 
pooled, and the Passenger Traffic and Assistant Traffic Managers 
are responsible for the important work of representing their 
company when the traffic percentages assigned to the various 
conference lines are being determined; and for the enforcement 
of the administrative requirements imposed in the pooling agree- 
ments. Highly important matters concerning the manner of sail- 
ings, the extension of passenger services, the allotment of ports, 
the regulation of passenger agents, etc., are also agreed upon 
in these conference committees.^ Passenger agreements are less 
common on other ocean routes, where the freight traffic is of 
dominant importance, but freight agreements frequently contain 
provisions regarding the allotment of sailings, ports or tonnage 
which concern the Passenger Traffic Department and necessitate 
cooperation with the Freight Traffic Manager. 

The Passenger Traffic Manager and his Assistant are also con- 
cerned with the classification of passenger services. Classifica- 

* Ocean Conferences are more fully discussed in Chapter V. 



PASSENGER TRAFFIC DEPARTMENT 35 

tion has for the most part been standardized into three classes 
— the first and second or cabin classes, and steerage. Some of 
the trans-Atlantic lines have, however, subdivided the steerage 
service into tv^^o classes, one of which is for immigrants and the 
other for steerage passengers who are not immigrants ; and 
first and second class passengers are in some vessels combined 
into one class known as "cabin" passengers. 

As in case of the Freight Traffic Department, the heads of the 
Passenger Traffic Department consider the desirability of ex- 
tending or altering the company's services, and make recom- 
mendations to the owners. When additional passenger vessels 
are purchased, constructed or chartered they examine into their 
suitability for the trade. They formulate the policy of the com- 
pany with respect to the development of its passenger traffic by 
advertising, solicitation, tourist departments or agencies, and 
the increased speed, comfort and safety of its vessels. They de- 
termine the form of passenger tickets and see that the tickets, 
ship accommodation plans, and the necessary information rela- 
tive to fares, services and sailings are placed into the hands of 
the company's booking clerks, branch offices and agents. At 
some ports special arrangements have been made with the rail- 
roads for the transportation of steamship passengers, particu- 
larly of steerage passengers, to inland destinations. 

For purposes of detailed administration the Passenger Traffic 
Department of a large line is divided into a Cabin Department 
and a Steerage Department, the former being directly under 
the Passenger Traffic Manager and the latter under the Assist- 
ant Passenger Traffic Manager. 

The Cabin Department 

In the Cabin Department there are three principal subdivisions, 
the main office, the branch offices, and the agents. 

Main Office Booking Clerks. — In the main office under the 
Passenger Traffic Manager are the company's booking clerks 
who book passengers in the cabin classes. A senior or chief 
hooking clerk is in charge of this work; or if the company 
( perates several distinct services to different parts of the world 
v^rre will be a chief booking clerk for each service. In the 
V. /-!ji services these chief booking clerks and the junior booking 



36 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

clerks under them need to be men who have at their command 
much information about the countries to which their Hne oper- 
ates and about the countries which can readily be reached by 
travelers from the foreign ports at which they will arrive. They 
are continually called upon to answer questions concerning for- 
eign points of interest to travelers ; foreign hotel accommoda- 
tions ; foreign rail and steamship connections, and the like. They 
must possess general refinement because they come into con- 
tact with the class of public which travels as cabin passengers. 
They must be able to use and understand the languages com- 
monly used in the services to which they are detailed because 
they come into contact with many non-English speaking for- 
eigners. Junior booking clerks are in many instances employed 
because of their knowledge of foreign languages or some special 
fitness or qualification possessed by them. Booking clerks are 
at times sent out to travel over the routes for which they book 
passengers so as to become personally acquainted with the con- 
ditions encountered by travelers. 

The clerks in the booking department at the main office must 
possess the qualifications of salesmen for they personally meet 
many travelers who engage their accommodations directly 
through them. They also handle the routine office work con- 
nected with the assignment of accommodations to passengers 
who are booked by agents throughout the country, and by branch 
and district offices. 

Main Office Landing Clerks. — The landing clerks for the cabin 
service of a steamship line are also connected with the main 
office of the Passenger Traffic Manager. These clerks board in- 
coming vessels at quarantine ; they represent the company with 
the United States immigration authorities ; they endorse tickets 
when necessary ; and they advise the cabin passengers regard- 
ing railroad connections to interior destinations. They must, 
therefore, have the knowledge of experts as to railroad connec- 
tions and immigration laws, and coming into contact with many 
foreigners it is desirable that they understand and talk foreign 
languages. Junior booking clerks frequently become landing 
clerks, and sometimes a senior booking clerk desiring outside 
work will become a landing clerk. Some hardship is encountered 
in bad weather, but the work of a landing clerk is healthful and 
diversified. 



PASSENGER TRAFFIC DEPARTMENT 37 

Main Office Railroad Booking Clerks. — Under the landing 
clerks in the cabin service is a railroad booking clerk and several 
junior clerks who arrange for the further transportation of 
steamship passengers desiring to travel to interior destinations. 

Traveling Passenger Agents, — Ranking with the senior book- 
ing clerks are a number of traveling passenger agents who in- 
crease their company's passenger traffic by personal solicitation 
cf individual passengers or groups of travelers, and by instruct- 
ing and overseeing the line's passenger agents. They also act 
as the Passenger Traffic Manager's representative when an 
agent is engaged. They need to possess expert knowledge of 
the line's services, for they are frequently called upon by the 
agents to answer questions which the latter are unable to answer. 

Tourist Department. — The organization of an ocean steamship 
line may contain a Tourist Department operating under the 
supervision of the Passenger Traffic Manager. The main office 
staff of such a department includes a senior or chief clerk and a 
number of junior clerks who perform the detailed traffic work 
connected with vessels assigned to tourist cruises. The chief 
clerk is frequently recruited from some one of the various tourist 
agencies who have for years made a special business of taking 
parties or entire ship loads of passengers on tourist voyages. 

A steamship line with a Tourist Department engages in the 
organized tourist business. Certain vessels are assigned to tourist 
cruises over selected routes ; the men in the Passenger Traffic 
Department who put through the traffic arrangements need to be 
well versed in the conditions of travel, and in the history, geogra- 
phy and points of interest of the foreign countries to be toured. 

The Publicity Department. — Although passenger traffic is de- 
veloped partly by personal solicitation, it differs from freight 
traffic in that it depends more largely upon advertising. So much 
of a passenger-carrying steamship line's publicity in fact is con- 
cerned with its passenger business that its Publicity Department 
is placed under the supervision of the Passenger Traffic Man- 
ager. The department in case of a large passenger line usually 
includes a chief clerk and several junior clerks, the former 
usually being a practical advertising man with experience in 
ocean transportation. In case of a passenger line very largely 
dependent upon its freight traffic, or in case of a cargo-carrying 
line, the publicity staff may not attain the position of a depart- 



'>>f'*^Ai ^ 



9m 



38 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

ment, but lines making a real effort to develop their passenger 
business expend large sums in publicity and prefer to have these 
expenditures applied effectively. 

Steamship advertising and publicity reaches the traveling pub- 
lic in part directly in the form of advertisements placed in 
widely read weekly and monthly magazines and other publica- 
tions kniown to be good mediums for shipping advertisements, 
and in part through attractive descriptive booklets and circulars, 
maps, window signs, pictures, vessel accommodation plans, sail- 
ing announcements, etc., which are widely distributed. Some of 
the publicity reaches the traveling public directly, and some of 
it is inside publicity which is directed to the company's agents, 
branch offices and booking clerks. 

The Supply Department. — The advertising material in the 
form of framed pictures, booklets, etc., prepared by the Publicity 
Department is often distributed, not directly by that department, 
but by a supply department which handles all the supplies pro- 
vided by the company for the use of its agents and home office. 
It handles not only supplies originating in the Publicity Depart- 
ment, but also tickets, books and forms and the certificates of 
appointment of agents. The head of the department may also 
act as the office paymaster of the Passenger Traffic Department. 

The Supply Department is not to be confused with the Vic- 
tualing Department which under the direction of a Victualing 
Superintendent and under the general supervision of the Man- 
ager of Operations is in charge of all the food supplies needed 
aboard ship. 

Branch Offices. — The Cabin and Steerage Departments of a 
passenger-carrying line maintain branch offices abroad and at 
various points in the United States. In many cases the line's 
branch offices handle both freight and passenger traffic, but they 
are responsible to the Freight Traffic Department for the one and 
to the Passenger Traffic Department for the other. If the 
branch offices are large they have separate freight and passenger 
departments for the two kinds of service. 

As in the freight service a passenger-carrying line frequently 
maintains branch passenger offices at outports in the United 
States, each with an organization similar to that of the home 
office. The head of such a branch office is usually responsible 
to the Passenger Traffic Alanager, but receives instructions from 



PASSENGER TRAFFIC DEPARTMENT 39 

the Assistant Passenger Traffic Manager regarding the steerage 
or third class service. There are also passenger departments in 
the company's district offices located at large interior cities. 
Branch offices or agencies are maintained to represent the line 
abroad and to develop and handle its passenger as well as its 
freight traffic. What was stated in the preceding chapter con- 
cerning their organization similar to the home office, and concern- 
ing the relatively little interchange of employees, applies also in 
the passenger service. When arrangements are made with a 
foreign concern to act as an agent the agent is responsible to 
the home office but appoints his own personnel. 

Passenger Agents. — The Passenger Traffic Department has 
agents at many points throughout the United States. They are 
appointed tmder rules and regulations and in the judgment of 
the heads of the Passenger Traffic Department and, as in case of 
freight service work, on a commission basis. They are responsi- 
ble directly to the Passenger Traffic Manager, but are also a 
part of the Steerage Department and receive instructions from 
the Assistant Passenger Traffic Manager regarding the develop- 
ment of the steerage business and the booking of steerage 
passengers. 

The Steerage Department 

The responsible functions of the Assistant Passenger Traffic 
Manager with respect to steerage or third class fares, the pool- 
ing of traffic, the classification of services, the extension of ser- 
vices, the examination of newly acquired vessels, and the formu- 
lation of general policies were mentioned above because he 
performs them in cooperation with the Passenger Traffic Man- 
ager. He is also the immediate head of the Steerage Department 
which he administers and supervises. The volume of steerage 
traffic in the trans-Atlantic trade greatly exceeds that of the 
cabin services, and its revenue importance is so great as to 
demand painstaking attention. In 1913, before the war dis- 
turbed the passenger business, 75.7 per cent, of the westbound 
and 65.8 per cent, of the eastbound passenger traffic, and 72.9 
per cent, of the total North Atlantic passenger traffic was third 
class or steerage. But 8.4 per cent, of the total number of pas- 
sengers traveled first class and 18.7 per cent, traveled second 
class. 



40 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

The Steerage Department has branch offices and agents as 
was stated above, but its main office still needs to be briefly 
described. 

Steerage Booking Clerks. — Steamship lines carrying large num- 
bers of passengers usually have separate booking clerks for the 
cabin and steerage services. There may be a chief booking clerk 
for each service in which many steerage passengers are carried 
and a number of junior clerks under each chief booking clerk. 
Their main qualification is a knowledge of the service to which 
they are assigned and of the various languages and dialects 
spoken by the many foreigners with whom they come into 
contact. 

Steerage Landing and Railroad Booking Clerks. — The land- 
ing of steerage passengers may be handled either by the same 
landing clerks who attend to this work in the cabin services or 
by separate clerks who are specialists in immigration and emi- 
gration. So, too, may the same persons serve as railroad book- 
ing clerks in all classes of services, or separate clerks may be 
assigned to the steerage passengers. In any case the landing 
and railroad booking clerks when performing their duties in 
the steerage service are under the supervision of the head of 
the Steerage Department. 

At New York, where the number of immigrants arriving 
greatly exceeds that at any other American port, the steamship 
lines and the railroads work in close cooperation in the trans- 
portation of immigrants to interior destinations. The eastern 
and western trunkline railroads have special agents at Ellis Island 
to issue railroad tickets and divide the total immigrant traffic 
among the various railroads so that the immigrant service provid- 
ed by each will be efficiently utilized. The steamship companies 
agree to sell through transportation from European points to in- 
terior points in the United States. Their agents issue steamship 
tickets to New York and steamship orders entitling the immi- 
grants to further transportation to interior destinations. If des- 
tined to points on the eastern trunklines the presentation of their 
steamship orders to the agents of the eastern trunklines will 
cause them to issue railroad tickets entitling the immigrants 
to railroad transportation in the special immigrant train or cars 
provided for the purpose, and to the special immigrant fares, 
applicable only to bona fide immigrants. If they are destined 



PASSENGER TRAFFIC DEPARTMENT 41 

to western points the agents of the western trunklines 
indicate on the steamship order the western railroad route 
selected by them, after which the agents of the eastern 
trunklines make out through railroad tickets over this western 
route and over the eastern trunkline route selected to carry this 
particular group of immigrants out of the port. This arrange- 
ment of the railroads and steamship lines at New York is of 
advantage to the immigrants who are assured of an organized 
through transportation service and avoid the risk when ashore 
of spending for other purposes, or being relieved of the funds 
with which they had intended purchasing railroad transportation. 

The traveling passenger agents, and the Publicity and Supply 
Departments, though directly under the Passenger Traffic Man- 
ager, are also connected with the Steerage Department. The 
functions performed by them concern both departments. They 
are responsible to the Assistant Passenger Traffic Manager when 
dealing with steerage service. 

Both the Steerage and Cabin Departments, of course, have 
clerks for general office work, and stenographers, typists, office 
boys and messengers. The Passenger Traffic Manager and the 
Assistant Passenger Traffic Manager, in the typical large line 
organization contained in Chart No. IV, each has a private 
secretary concerning whom the account contained in the pre- 
ceding chapter regarding the opportunities and qualifications of 
private secretaries is applicable. 

Cooperation with Other Departments 

The representatives of the Passenger Traffic Departments 
aboard a vessel are the purser, the assistant purser and frequently 
a numtytT'oTJiwior clerks. The place of these men in the busi- 
ness organization of a steamship'Tine is in the JJarine or Deck 
Department under the Marine Superintendent, but the nature 
of their work is such that they are also responsible to the heads 
of the Passenger Traffic Department and to the Treasurer. They 
are responsible for the collection of passenger tickets and are 
in charge of the ship's passenger list afloat, the preparation of 
reports and the performance of various clerical duties. Booking 
clerks sometimes take positions on board vessels and the line 
for promotion from ship to shore is open. 



42 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Ashore, the heads of the Passenger Traffic Department, as 
was previously stated, come into contact with the Marine De- 
partment and the Freight Traffic Department when questions 
concerning the extension of services or the acquisition of ves- 
sels is under consideration. They also cooperate with the latter 
department when the company's policy regarding conference 
agreements affecting both the passenger and freight services are 
formulated, and when changes are contemplated regarding branch 
offices or agencies that represent the company in both services. 

The Passenger Traffic Department is in close cooperation with 
the Treasurer's Department, not only in that there are Cashiers 
or a Cashier's office in both the Cabin and Steerage Passenger 
Departments to turn the passenger receipts of the company over 
to the Treasurer, and cash book keepers to keep the necessary 
records, but also in that the Money Order Department is located 
in the Passenger Traffic Department. In the typical large line 
organization shown in Chart No. I of Chapter I the Assistant 
Treasurer, who is in direct charge of the Money Order Depart- 
ment, has his office in the Cabin Department so as to be con- 
veniently located for the handling of travelers' checks, money 
orders, and drafts, foreign exchange matters and money chang- 
ing. This office is also closely connected with the Steerage 
Department because in this service arrangements are frequently 
made for prepaid passages and the sale of money orders to immi- 
grants. Many agents for the Steerage Department are money 
lenders or small bankers with whom the immigrants deposit their 
earnings, and they make a business of selling both tickets and 
money orders. The tickets sold by them include many prepaid 
passages to bring over other members of the immigrants' families. 

The Auditor's office, which is part of the Comptroller's De- 
partment, has direct connection with the Passenger Traffic 
Department, because it is responsible for the checking of passage 
money and passenger tickets sold and has charge of the pas- 
senger lists or manifests ashore.^ Under the Auditor in the 
Comptroller's Department is a passenger manifest clerk. 

Chart No. I in Chapter I shows that the Baggage Department 
is usually under the supervision of the General Wharf Superin- 
tendent, and a detailed description of it is therefore left for the 
manual of this series on Wharf Management by Dr. R. S. Mac- 

* See Chapter VIII, Form 38. 



PASSENGER TRAFFIC DEPARTMENT 43 

Elwee and Mr. T. R. Taylor. The Baggage Department is closely 
connected with the Passenger Traffic Department. The baggage 
master, the assistant baggage master, and the various cabin and 
steerage baggage clerks who comprise the department apply the 
rules and instructions governing the handling of baggage which 
are issued by the heads of the Passenger Traffic Department. 



CHAPTER IV 

ORGANIZATION AND ADMINISTRATION OF CHARTERED 
STEAMSHIP SERVICES AND SHIP BROKERAGE 

The traffic conditions favorable to the operation of regular 
steamship lines do not always obtain, and even when the services 
of lines are available, shippers — particularly those having full 
cargoes of bulky commodities — often prefer to charter tramp 
vessels. The fleets of many steamship lines, moreover, consist 
in part of chartered vessels. The chartered freight service re- 
ferred to in Chapter I continues to be of vast importance in 
international commerce. 

It is the purpose of this chapter to trace the various kinds of 
chartered service and types of tramp operators ; the services 
performed by ship brokers, and their charges and business or- 
ganization. The varying relations between vessel owners and 
charterers and their respective responsibilities will be described 
in Chapters XII and XIII in connection with the time and voyage 
charter parties which constitute the basic shipping documents 
in the chartered freight service. 

Types of Chartered Services 

The most common kind of chartered service is the ordinary 
tramp service perfoiTned when a vessel is chartered by a shipper 
under a trip or voyage charter to transport a full cargo. The 
vessel may be chartered to proceed to a destination specified in 
the charter, or it may be chartered for any one of a range of 
destinations. In the latter case the master may receive his in- 
structions to proceed to a defined destination before sailing, or 
he may be ordered to call at some agreed point for orders. When 
shipping grain to Europe, for example, the destination of the 
cargo is not always known before the vessel sails. The grain 
may be sold while afloat, after which delivery orders will be 
transmitted to the master. 

44 



CHARTERED STEAMSHIP SERVICES 45 

When chartering a tramp vessel for an agreed voyage it may 
be arranged that the shipper who acts as charterer is to provide 
a cargo consisting mainly of a certain commodity or commodi- 
ties and that he shall be responsible for a charter rate based 
upon a full cargo, but that he may also accept cargo for other 
shippers at a higher or lower rate of freight than that named 
in the charter party. The shipper who chartered the vessel is 
in this case putting the vessel on the berth to fill available space 
not needed for his own cargo. He pays the agreed charter rate 
to the vessel owner and in turn receives freight rates from the 
shippers who avail themselves of the offer. 

A tramp vessel instead of being chartered for a full cargo 
may also be put on the berth by its owner either for a full cargo 
or for smaller shipments to fill space not already contracted for. 
So, too, may a tramp be put on the berth for large or small 
shipments of general cargo by a ship broker, general operator, 
or speculator who has chartered it from the owner for this ex- 
press purpose. The vessel in such case is not providing a tramp 
service in the usual sense; it has virtually been withdrawn tem- 
porarily from the tramp service to carry general cargo in com- 
petition with the steamship lines; or to provide a general cargo 
service to points not served by regular lines. The operator is 
engaging in a speculation and for that reason is most apt to 
undertake such a transaction when the rates of the regular lines 
seem to be exorbitant or when a shortage of tonnage has 
developed. 

Steamship line operators frequently charter vessels on time 
charters to supplement the line vessels owned by them or to 
conduct a line service in fleets consisting entirely of chartered 
vessels. To meet a temporary demand a line may even charter 
a vessel for a single voyage on a trip charter. In either case, 
however, the vessel has for the time being entered the line service. 

Types of Tramp Owners or Operators 

Some of the most successful tramp owners have been those 
with but a single vessel or with small fleets of but two or three 
vessels. The master of a tramp vessel may in fact be its owner 
or part owner, and the entire business of operation is at times 
left to the master. When the owner is not the master he may 



46 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

p.iaintain an office organization, but it may consist of little else 
than a correspondent and bookkeeper. The business manage- 
ment of such tramp owners is handled largely by ship brokers 
who are found at all ocean ports of importance throughout the 
world. 

Again a tramp vessel may be operated not by its owner but by 
small or large operators who usually charter vessels from their 
owners on time charter parties. The owners are paid the hire 
agreed upon in the time charters, and the operators obtain their 
profits from the effective use of the vessels controlled by them. 
They may recharter on trip charters, i.e., perform a tramp service 
in the usual sense ; they may place the vessels on the berth for 
full or part cargoes ; they may operate them in ballast when nec- 
essary or desirable, or they may recharter them on time charters 
at higher rates of hire. 

Similar to operators of this kind are the large concerns which 
in England are known as managing owners. Through them, 
fleets ranging from half a dozen to more than one hundred are 
managed from one office. Some of the vessels may be owned 
by the concern, while others are owned by other vessel owners 
who turn them over to the managing owner for operation on the 
basis of a percentage of the profits. The following interesting 
account of the operations of a managing owner is given by Mr. 
Joseph A. Slechta : 

These vessels are seldom, if ever, loaded for the account of the im- 
mediate operators or managers. To such a manager, the trade routes of 
the entire world are treated somewhat as a gigantic chess-board, and 
upon this the manager manipulates his "pieces" or vessels in accordance 
with the recommendations of a specialist of the world's industries, mar- 
kets, and economic conditions, not to be approached in comprehensive 
thoroughness by men in any other activity of the world's affairs.. 

It is the duty of these men to plan the voyages of the owner's vessels 
for a period from six months to two years or more, in advance ; con- 
sideration is given by them to one and one only ultimate goal, — which is 
the maximum net profit to be gained from the operation of the fleet. 
Frequent statements to the contrary notwithstanding, not even considera- 
tions of national polity are for a moment allowed to outweigh the ques- 
tion of profit. It is true that frequently the interests of the State are 
served best in making profit the first prerequisite. If in the past, the 
managing owners of Britain's great fleets of tramp steamers have so 
distributed them over the world's trade routes as to advance British 
trade interests, it has been because in that direction most profit was 
anticipated. The specialists who study these considerations of gain, 
having determined that a certain trade ofifers the best advantages, charter 



CHARTERED STEAMSHIP SERVICES 47 

vessels for that trade to the highest bidder, be he a national or foreign 
subject or citizen. 

Let us take a concrete illustration of a few of the principles involved 
in such a manipulation of ocean tonnage. Assume that one 7000-ton 
steamship belonging to such a fleet has just discharged a cargo at New 
York, or is about to do so. Her next voyage has not yet been determined 
upon. Offers are received from ship brokers in various parts of the 
world, and these are before the Board of Experts in the London office. 
One such offer is, let us say, for a cargo of coal from Newport News to 
Buenos Aires, the rate to be $5.00 per ton of coal carried. Another shipper 
of coal for the same market, but from Cardiff, Wales, offers $4.00 per 
ton on the same conditions. The length of the voyage is about the same 
in both cases. A third offer is also for a coal cargo at $2.00 per ton, 
delivered in Havana. At the same time, the current rate for baled cotton 
from Galveston to Liverpool offers distinctly good returns. Which of 
the three coal cargoes is finally accepted will depend upon the best avail- 
able cargoes to be had after the voyage is completed. If the $5.00 rate 
to Buenos Aires be accepted, the owners note that the vessel will be in 
the River Plate within six weeks, ready to load, but the wheat harvest 
will not begin for four months and the current year's crop is nearly 
exhausted, or shipment already contracted for. Tl;e rate of freight of- 
fered is the best immediately available, but the owner must plan bej'ond 
the first three or even six months. He accepts the $2.00 rate to Havana, 
although the expenses of discharging, added to his regular overhead, leave 
little if any margin. He has, at any rate, managed to meet expenses for 
the greater part of the voyage en route to Galveston. He, at the same 
time, closes with a shipper of cotton a full cargo to Liverpool, and an- 
other with the Cardiff coal company for coal to Buenos Aires. This 
route brings his vessel to the River Plate at a period of the year when 
rates should be highest. H£ may not immediately close this business, 
say with wheat to Liverpool, having been advised by his experts that the 
crop in Argentina will be large and that an unusually small number of 
vessels may be expected to accept business outward to the Plate within 
the immediate succeeding weeks. Rates on wheat m.ay, therefore, con- 
fidentially be expected to advance, and the owner's interests are best 
served by holding off. Eventually, his experts may find that their calcula- 
tions have been upset by a sudden drought which will bring crop failures 
in Argentina; but there has been a large crop of coffee in Brazil, and the 
sudden failure of the Argentina wheat crop has stimulated the demand 
for American wheat in France and England. By closing a charter im- 
mediately for coffee to New York and wheat from New York to Liver- 
pool, he anticipates a drop in the rates for this business, likely to be 
brought about by the large numbers of vessels looking for such cargoes 
when the situation becomes more generally known. 

The vessel is once more at an American port, having carried one cargo 
outward, brought another in, and engaged to carry a second across the 
Atlantic. In neither case is opportunity afforded to the shipper of Ameri- 
can manufactured products to increase his business in South America and 
many authorities hastily ascribe to the owner motives deliberately calcu- 
lated to injure American foreign trade interests, when, as a matter of 
fact, nothing of the sort has happened. The hypothetical case cited is 
one of the most simple combinations of circumstances with which the 
cwncr of large fleets of tramp steamers may be confronted. Ofttimes, 



48 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

they are vastly more complex, necessitating consideration of an infinitely 
greater variety of factors, industrial, agricultural and market.* 

Still another variation in type of tramp owner or operator is 
the general steamship operator or steamship agent, whose opera- 
tions are not confined to any one branch of shipping. Many 
of them are large concerns which act as steamship agents for 
regular line companies, organize and operate one or more lines 
on the basis of vessels which they own or charter, do a general 
ship brokerage business, act as ocean freight forwarders, handle 
marine insurance, hold the license of a custom house broker and 
manage fleets of tramp vessels. The same concerns in some 
instances operate as export and import commission houses or 
merchants. These general steamship operators are prepared to 
lease out their own vessels under any of the various forms of 
charter parties described in Chapters XII and XIII if it should 
be deemed to be more advisable than to operate them in the line 
service ; and conversely to charter vessels from other ow^ners for 
operation either in the line or tramp service, as the occasion 
may warrant. 

Before chartering a number of vessels under time charters 
such a general steamship operator at times makes time contracts 
with large shippers of sugar or other staple commodities, so that 
he is assured of a portion of the cargoes needed to operate the 
chartered vessels. This is his method of limiting his risks, of 
protecting his profits, or "hedging" his chartering transactions. 

A ship broker who is engaged primarily in the ship brokerage 
business may also at times became a tramp operator. He may 
be the owner of one or more vessels, and use his brokerage or- 
ganization and his knowledge of shipping requirements in their 
efficient operation. He may also charter a vessel on his own 
account with a view to operating or rechartering it at a profit 
over and above the charter rate paid to its owner. 

There are, moreover, the large shippers who not only own 
vessels but also charter others mainly for use in their own busi- 
ness. Their prime purpose in owning or chartering vessels is to 
provide themselves with the private or industrial transportation 
service referred to in Chapter I. They may operate a line service 
or dispatch their vessels on an irregular schedule, loading them 
mainly with their own cargoes, but efficient operation may de- 

* J. A. Slechta, paper on "Practical Steamship Operation." 



CHARTERED STEAMSHIP SERVICES 49 

mand that they sublet unused space to other shippers and seek 
available cargoes on return trips. 



Services Rendered by Ship Brokers 

The chartering of vessels is handled largely through ship 
brokers. Small owners or operators depend upon ship brokers 
not only to find charterers for them and sometimes to handle 
their business affairs ashore, but depend largely upon them for 
advice as to how the voyages of their vessels should be planned. 
Larger tramp operators, managing owners and general steamship 
operators with extensive business organizations of their own and 
expert chartering managers are less dependent upon outside ship 
brokers in planning voyages, but they, too, obtain advices from 
them and frequently carry out their chartering transactions 
through the medium of ship brokers. 

The main work of ship brokers is to find charterers for vessels 
and vessels for charterers. The owners or operators of tramp 
vessels seeking cargoes are served by ship brokers who "cover 
the market" daily, i.e., they keep in touch with shippers who are 
likely to become charterers. If the desired full cargoes are not 
available at the port in which a particular ship broker is located 
and where the vessel has arrived or is about to arrive, he may 
be able to locate a charterer elsewhere through a ship broker 
or agent at another port. Instead of chartering the vessel to 
a shipper on a trip charter, the broker may be able to charter it 
to a general steamship operator, a regular steamship line, an 
industrial concern or large shipper, or to a small or large tramp 
operator on a time or perhaps a trip charter at satisfactory 
terms. Having arranged the chartering transaction to the satis- 
faction of owner and charterer the ship broker sees to the 
preparation of the charter party and its execution. 

Ship brokers sometimes are important factors in the loading, 
discharging, and operation of chartered vessels. Their services 
in this connection depend upon the terms of the charter party 
as to whether loading and discharging or either of these services 
is to be performed by the vessel owner. When attending to the 
loading or discharging of a vessel for the owner the ship broker 
in effect becomes what in Great Britain is known as a "loading 
broker." This term is not in general use in the United States, 



50 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

but the same work is performed by ship brokers who make the 
necessary arrangements for the vessel owners. Charter parties 
sometimes specify that the vessel is "to be consigned at port of 
discharge to owners or their agents, by whom the steamer is to 
be reported at the custom house." The owner in this case needs 
to be represented on the spot, his agent frequently being a ship 
broker to whom the vessel is consigned. The broker after con- 
sulting the principal cargo owners, arranges with the port author- 
ities the dock at which the vessel shall discharge, and on arrival 
of the vessel sees that the requirements of the custom house 
are duly fulfilled. If any freight is due at destination, he will 
attend to its collection ; he will provide for the vessels disburse- 
ments ; and after deducting his own charges will remit the 
balance to the owners.^ 

Should it be decided by the owner or operator to put a vessel 
on the berth a ship broker may be instructed to provide cargo 
and handle the transaction. The ship broker, who then in eflfect 
becomes a steamship agent, may advertise the voyage and send 
notices to shippers who are likely to ship in the vessel, or solicit 
cargoes from them personally. He makes the necessary docking 
arrangements, books freight at such rates as the market warrants, 
arranges for the receipt and loading of the cargoes, signs bills of 
lading for the ownefs or master, collects the freight if it is to 
be prepaid, pays the vessel's disbursements at the port, makes 
out the ship's manifest, clears her outwards at the custom house, 
deducts his own expenses and charges and remits the balance to 
the owners.^ 

Not all ship brokers are equipped to place a tramp vessel on 
the berth. Many of them, however, are steamship agents as 
well as ship brokers and possess a business organization suit- 
able not only for chartering vessels but also for loading, dis- 
charging and operating. As has been stated, ship brokers some- 
times charter vessels on their own account and put them on the 
berth for cargo. 

Ship brokers are also engaged in the selling of vessels. As in 

a chartering transaction they serve as a medium through which 

the owner and purchaser get together. When satisfactory selling 

terms have been agreed upon, the ship broker executes a form of 

'Douglas Owen, Ocean Trade and Shipping, p. 89 (Cambridge, Eng., 
1914). 
' Ibid^. p. 90. 



CHARTERED STEAMSHIP SERVICES 51 

contract, and when title passes he executes the necessary bill of 
sale. He also arranges for the transfer of the vessel to its new 
owner, which in the United States necessitates obtaining a consu- 
lar bill of health, an inventory of supplies on board and a certifi- 
cate of registry. In England some ship brokers are known as 
"brokers for sale of ship" to distinguish them from "chartering 
brokers," and "loading brokers." * This terminology is not in 
general use in the United States, and ship brokers here do not 
confine themselves to one function only. All of them are ready 
to charter and sell the vessels of ship owners, but some of them 
are not organized to act as loading brokers. 

The business of marine insurance, which is described in a 
separate manual of this series, is so closely interwoven with 
ocean shipping that ship brokers usually act also as marine in- 
surance brokers so as to be in a position to attend to the insurance 
of vessels, freight and cargoes when authorized to do so. They 
may likewise hold the license of a custom house broker. 

Business Organization of Ship Broker 

The ship brokerage business is so organized and the nature of 
the business is such that the comparatively small staff of a 
broker is able to transact a business of large volume and almost 
world-wide scope. The business organization shown in the ac- 
companying chart (No. V) may be regarded as that of a typical 
large American ship broker. There are many smaller ship 
brokerage concerns, the business organization of which is very 
much smaller. There are, in fact, instances where a single 
individual conducts a ship brokerage business, his office facili- 
ties consisting of desk room in some conveniently located business 
office. 

In the typical organization of a large ship broker there is a 
Manager to supervise the work of his staff, to establish connec- 
tions with ship brokers at foreign ports and at other ports in the 
United States, to decide matters of importance in connection with 
charter forms and sales contracts, keep in touch with vessel 
owners and prospective charterers, plan operations in case he 

* Thomas E. Scrutton and F. D. Mackinnon, The Contract of Affreight- 
ment as Expressed in Charter Parties and Bills of Lading. (Seventh 
Edition, London, 1914). 



52 



OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



decides to charter a vessel on his own account, and generally 
to determine the business policies to be pursued. There are 
two or three Assistant Managers in the large ship brokerage 
house, whose main work consists in covering the market daily. 
They endeavor to keep in almost constant touch with the large 
shippers and other business concerns that are likely to be in the 
market to charter vessels. In case a vessel is put on the berth 
they are also engaged in procuring freight for it. As charter 
rates are largely determined by bargaining and the sums involved 
are large they need to have a wide knowledge of charter rates, 
good business sense and the ability to successfully approach and 



Chart V 



TYPICAL BUSINESS ORGANIZATION OF A LARGE SHIP BROKER 



Manager 



Two or Three 
Asst. Managers 



Foreign Oonnec 

tlons or Oorre- 

epondonts 



|One or Two Janlors] [Two StenoBrapherB] 



I Oashler | 



Oonncctlone 

or 

Oorreepon- 

lentsat other 

American 

Ports 



\ Asst.Cbshler I 



negotiate with charterers. The variations in the provisions con- 
tained in charters are so wide and yet so important to both 
owner and charterer that they need to possess expert knowledge 
of charter forms. Types of vessels and their uses are so diverse 
that they need to be familiar with the essential particulars of 
the vessels for which they seek charterers. If these vessel par- 
ticulars are not obtainable from their files they need to consult 
Lloyds Register or other available sources of information. They 
frequently possess blue prints of a vessel's deck plan and hold 
arrangements. 

One or two juniors are employed to handle office detail work 
in connection with the preparation of charter parties, sales con- 
tracts and bills of sale, maintaining the office files, custom house 
work, and other activities engaged in by the brokerage house. A 
Cashier and Assistant Cashier handle the bookkeeping and finan- 



CHARTERED STEAMSHIP SERVICES S3 

cial work. The staff of this organization also includes several 
stenographers. 

This is a typical office staff for conducting a general ship 
brokerage business, whether through a large ship broker en- 
gaged exclusively in this business or through the Chartering 
Department of a steamship agent or general steamship operator. 
The ship broker may, however, equip himself with an additional 
organization for loading, discharging^ and operating vessels. 
Such a staff is not necessarily included in the business organiza- 
tion of a ship broker. If the ship broker is equipped to put 
vessels on the berth for cargo he virtually becomes a steamship 
agent and has an organization approximating that described in 
Chapter XL 

Aside from this office organization each ship broker has con- 
nections or correspondents at a large number of foreign ports 
and at other ports in the United States, and he may have branch 
offices at certain ports. These connections or correspondents 
usually are themselves ship brokers, so that the ship brokerage 
business throughout the commercial world constitutes a closely 
woven business fabric. The ship brokers of the world together 
"make a complicated web that reaches to all cities of commer- 
cial importance. The whole is so bound together by telegraph 
and cable that, like a spider's web, if touched by anything of 
importance at any point the whole structure vibrates with the 
news." ° It is this practice of establishing connections with each 
other at many ports that enables the individual ship brokerage 
house to conduct an extensive business with a small office staff. 
The main expense of a ship broker in a chartering transaction 
in many instances results from the extensive use of the telegraph 
and cable. 

Ship brokers frequently are members of associations or ex- 
changes. Many ship brokers, for example, are members of the 
New York Produce Exchange, which has adopted an approved 
grain charter party, and approved berth terms contracts which 
are entered into subject to the rules of the Exchange and with 
the agreement that disputes arising at the port of loading shall 
be subject to arbitration at New York as provided in these rules. 
The rules of the Exchange regulating the steamship business 
authorize arbitration either by a standing Committee on Steam- 

'J. Russell Smith, Organisation of Ocean Commerce, p. 11. 



54 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

ship Affairs or by private arbitration, and they standardize the 
practice of the port with respect to lay-days, demurrage, notifica- 
tion of readiness and various other matters referred to in the 
chapters deahng with charter parties. The Exchange also affords 
facilities for quoting grain charter rates, for chartering vessels, 
engaging space, and contracting marine insurance. 

Ship brokers may also be members of so-called maritime ex- 
changes. The Philadelphia Maritime Exchange, for example, 
keeps records of charter parties and the movement of vessels ; 
it has reporting stations with agents, collects current shipping 
news and shipping statistics, and provides facilities for the 
arbitration of shipping disputes. It has also standardized the 
grain charter party and adopted local rules governing vessel 
demurrage, loading and discharging and the receipt and delivery 
of various kinds of cargo. 

Ship Brokerage Charges and Profits 

The usual compensation of a ship broker for chartering a 
vessel on a voyage charter is a commission in the form of a 
percentage on the gross amount of freight, dead freight and 
demurrage provided for in the charter. Dead freight is the 
difference between the charter rate per unit of cargo applied to 
the full cargo called for in the charter, and this rate appHed 
to the actual cargo on board, which may be less than a full cargo. 
Demurrage is the amount paid by the charterer in case loading 
is not completed within a specified number of days after the 
vessel is ready to receive cargo or does not proceed at the rate 
of an agreed number of tons per day. The commission is paid 
by the vessel owner or operator. 

When a vessel is put on the berth for its owner or operator by 
a ship broker his commission is likewise a percentage of the 
freight. Under a time charter he receives from the owner or 
operator a percentage of the gross freight or hire, provided for 
in the charter party. If he sells the vessel he receives a per- 
centage of the price paid for the vessel. 

The broker's commission for chartering vessels or putting 
them on the berth varies. It may be as low as 1/4 per cent, or 
as high as 5 per cent., depending upon the size of the vessel, the 
nature of the services required by the owner, the custom of the 



CHARTERED STEAMSHIP SERVICES 55 

port, and other contingencies. The printed charter forms do not 
always disclose the actual rate of commission ; old forms may 
be used in which 5 per cent, commission is specified, although 
the understanding is that the broker shall receive but 2^^ per 
cent. 

Some charter parties p£oyide that Jn addition to the com- 
mission paid to the broker he shall also receive the "customary 
freight brokerage." This usually refers to an agreed or cus- 
tomary amount over and above his commission for attending 
to the ship's business at the port of loading. As in case of the 
broker's commission, the presence of this clause in the printed 
form is not always evidence that the broker in every case re- 
ceives "the customary freight brokerage." 

When a ship broker provides vessel or cargo owners with 
marine insurance he is acting as a marine insurance broker 
and obtains a commission from the insurance company. When 
he acts in the capacity of a custom house broker he receives the 
customary fees referred to in Chapter IX. Should he charter 
a vessel on his own account, either to recharter it at a higher 
rate or put it on the berth, he aims to make a business profit on 
the venture, for in such case he becomes a vessel operator. If 
he is a vessel owner as well as a ship broker the revenues de- 
rived from his own vessels likewise depend upon whether he can 
charter his vessels, put them on the berth, or otherwise operate 
them profitably. 



CHAPTER V 

RATE AND TRAFFIC AGREEMENTS, POOLS AND CONFER- 
ENCES OF OCEAN CARRIERS 

The differences between tramps and lines mentioned in the 
preceding chapters have a special bearing on the extent to which 
their rates and services are controlled by agreement. Although 
a measure of cooperation among chartered vessels has at vari- 
ous times been attempted, complete cooperation is difficult to 
attain. The vast number of vessels and their owners, the bulky 
character of the greater part of their cargoes, the relatively small 
investment required to engage in the tramp service, and the fact 
that they are not limited to particular routes or ports, have main- 
tained a much greater degree of competition among chartered 
vessels than among lines. Indeed, the most disturbing element 
confronting the lines is the frequent competition between the line 
and tramp services. 

Conference Agreements in Chartered Ocean Services 

The occasional agreements or conferences that have been 
arranged among the owners of tramp vessels have been limited 
in scope and have had no great effect upon charter rates. In 
1904, for example, the Sailing Ship Owners' International Union 
was organized for the object of fixing minimum rates of freight 
for the principal voyages in which sailing vessels are engaged 
in bringing freight to European ports from countries outside of 
Europe. A permanent committee was organized by the union to 
fix these freight rates from time to time for the various leading 
foreign ports. In joining the union each member promised to 
abide by all rates fixed by the union, and not to grant any re- 
bates or commissions. He also agreed to let his ship lie by or 
sail in ballast if cargo could not be secured at union rates. 

* This chapter is reproduced from Emory R. Johnson and Grovcr G. 
Huebner, Principles of Ocean Transportation, Chapter XIX. 

56 



RATE AND TRAFFIC AGREEMENTS 57 

The scope and effect of this conference, however, were de- 
cidedly limited. It applied only to certain long voyages, such 
as those from the west coast of South and North America and 
the return voyages; only sailing vessels were included in the 
agreement ; and these had to be relatively large vessels of an 
agreed minimum tonnage. The rates agreed upon, moreover, 
were merely a minimum, which was fixed largely with reference 
to the line of no profit. 

There are also various steamship owners' associations, par- 
ticularly in Great Britain, that have at times endeavored to con- 
trol charter rates between certain of the larger ports, but have 
never exerted a widespread effect upon such charges. They are 
concerned mainly with obtaining favorable harbor regulations 
and shipping legislation ; government protection against the ship- 
ping policies of foreign countries; improved charter parties; re- 
duced coal-trimming charges ; favorable tolls ; protection against 
organized labor; or economical marine insurance.^ In 1905 a 
number of vessel owners entered into an agreement applicable to 
the rate on lumber from Norway, Sweden and Russia to Great 
Britain, Germany, Holland, Belgium and France ; but the main 
work of the organization has been in building up a uniform char- 
ter party and in providing rules governing matters such as 
lumber measurement, loading, discharging and insurance. 

At times certain ship operators have complained of agreements 
making it difficult for them to charter vessels for use in par- 
ticular trades, such as the trade between Porto Rico and the 
United States.^ No evidence has, however, been presented that 
any considerable number of such agreements have ever been in 
existence nor that their effect was general. The Porto Rican 
agreement was possible because the trade of the United States 
with that island is "coastwise" trade and is not open to the com- 
petition of foreign vessels. 

Prevalence of Ocean Line Conferences 

It is in the ocean line business that cooperation has displaced 
unrestricted competition. The number of lines is relatively small, 
their invested capital is relatively large, they usually operate 

'J. R. Smith, The Ocean Carrier, 243. 

^ House Committee on the Merchant Marine and Fisheries, Proceed- 
ings in the Investigation of Shipping Combinations, I, p. 701. 



58 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

over definite routes and at a limited number of ports, and much 
of their traffic consists of high-grade commodities, general 
cargo, express goods, mail and passengers, from the carriage 
of which the tramps are ordinarily excluded. Conferences, 
agreements and pools have become general in the ocean line 
traffic because their organization and maintenance are less diffi- 
cult than in charter traffic, and because the competition between 
ocean lines, if unrestricted, is likely to become so intense and 
persistent that their successful and profitable management prac- 
tically requires them to enter into arrangements regulating their 
interrelations. As was stated in the Report on Steamship Agree- 
ments and Affiliations in the American Foreign and Domestic 
Trade,'^ made by Professor S. S. Pluebner to the House Com- 
mittee on the Merchant Marine and Fisheries, 

as regards nearly every foreign trade route, practically all the established 
lines operating to and from American ports work in harmonious 
cooperation, either through written or oral agreements, conference ar- 
rangements, or gentlemen's understandings. The few instances where 
two or more lines serve the same route and have denied the existence of 
written or oral agreements for the regulation of the trade, are exceptions 
and not the rule. 

A report on Shipping Rings, made in 1909 by a British Royal 
Commission, showed that line conferences and agreements are 
similarly almost universal in the international trade of foreign 
countries. 

The European War has resulted in the disruption of some 
of the conferences and agreements specifically referred to in the 
above-mentioned government reports. Many, however, were 
doubtless in effect even during war conditions, and there is no 
likelihood that the war has permanently altered the need of the 
ocean lines to cooperate in the future. 

Organization of Ocean Line Conferences 

The organizations through which the lines administer their 
agreements, pools or understandings are known as "conferences." 
They may be informal gatherings or intermittent, irregular 
meetings, at which rates, sailings or other matters of. mutual 
interest are arranged. There may be nothing but an informal 
understanding that the traffic officials of one line will consult 
those of another whenever any rate changes are contemplated, 

* Proceedings in the Investigation of Shipping Combinations, IV, p. 281. 



RATE AND TRAFFIC AGREEMENTS 59 

or that a weaker line will follow the rates established by a 
stronger line. Conferences may, however, be formal organiza- 
tions with permanent officers, committees, regular or special 
meetings, rules, and penalties. The Mediterranean Westbound 
Freight Traffic Agreement, for example, is administered by a 
general secretary and an assistant secretary, a board of arbitra- 
tors, and a convention or committee of line delegates. 

The general duties and powers of the secretary and assistant 
secretary of the Mediterranean Conference are:^ 

1. To receive the statistical statements and manifests, and to examine 
them and the accounts, for which purpose they have access to the freight 
offices of the lines and of the agents, where they may examine books, 
manifests, correspondence, etc. 

2. To communicate the statistics and accounts to the lines and act as 
mediator in general in the transactions between the lines. 

3. To control the freight rates, commissions, and rebates, and to see 
that the lines receive regularly and at the same time all necessary state- 
ments. 

4. To collect the payment of penalties and effect compensation accounts. 

5. To call meetings of the lines and to keep minutes of such meetings. 

6. To use every exertion to settle difficulties between the lines in an 
amicable fashion. 

The board of three arbitrators is empowered to settle any 
disputes that may arise among members. It is appointed each 
time a dispute arises upon appeal of the parties involved ; one 
arbitrator is appointed by each disputant, and these in turn 
select as umpire one of three persons named in the Mediter- 
ranean Westbound Freight Traffic Agreement. Should either 
party fail to appoint an arbitrator within fourteen days after 
notice is given by the general secretary, the one appointed by the 
other party shall have full power to proceed with the case. The 
conference delegates of the lines have supreme legislative powers. 
They meet at regular or special meetings called by the General 
Secretary to make the underlying agreements or the arrange- 
ments that bind the conference lines. The expenses incurred 
are divided equally between the two groups of lines that are 
members of the conference.® Many of the formal ocean con- 

°W. H. S. Stevens, "The Administration and Enforcement of Steam- 
ship Conferences and Agreements," in The Annals of the American 
Academy of Political and Social Science, September, 1914, p. 136. 

'The Mediterranean Westbound Freight Traffic Agreement was 
entered by two groups of lines: (1) The six Italian lines — the Navi- 
gazione Generale Italiana, Italia, Veloce, Lloyd Italiano, Lloyd Sabaudo, 
and Sicula Americana; and (2) four British and German lines — the 
Anchor, Hamburg-American, North German Lloyd, and White Star. 



60 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

ferences do not have the elaborate administrative machinery and 
rules of the Mediterranean Conference, but nevertheless have a 
definite organization. 

In order to guarantee good faith each member of a confer- 
ence is in many instances required to deposit a stipulated sum, 
to be forfeited in case it in any way assists a non-conference 
line, or itself establishes a new service that will interfere with 
the conference lines. It is also a common conference rule that 
new lines may not be admitted to membership except by unani- 
mous consent. Different conference lines may, moreover, be in- 
terrelated by specific agreement, or a group of conference lines 
may enter into an agreement with a line that is not a member 
of their conference. The N. D. L. V. lines have a passenger 
agreement '' "L" with the American Line and the Compagnie 
Generale Transatlantique, and other sub-agreements, known as 
agreements "G," "J," and "N," as is shown in Chart No. VI. 
The subsidiary agreements of the Mediterranean Conference 
lines listed in the diagram are further examples of such inter- 
relationship. 

The conference agreements and arrangements of the ocean 
lines differ greatly in their details, but the unmistakable pur- 
pose of all is the control of competition. They may, therefore, 
be divided into two groups : ( 1 ) those designed to control the 
competition between conference lines, and (2) those aiming to 
control or combat the competition of non-conference ocean 
carriers. 

Types of Ocean Line Rate Agreements 

The competition between conference lines is frequently sub- 
jected to the restricting influences of fixed, minimum or differen- 
tial agreements. A fixed rate agreement is one that specifies 
the actual or absolute freight rate or passenger fare that is 
charged by a certain group of conference lines, all charges to be 
subject to the mutual consent of all members. Such, for example, 
is the practice under the Mediterranean Westbound Traffic 
Agreement referred to above. All the lines, with the exception 
of the Fabre Line, engaged in the westbound freight traffic 

* The N. D. L. V. conference (Nord-Atlantischer Dampfer Linien 
Verband) includes the Hamburpf-American, North German Lloyd Line, 
Wilson Line, and the Scandinavian-American Line. 








COHPIJDICJ 


iii:li:;i;r''^"!'" 










"'"rrE. 







RATE AND TRAFFIC AGREEMENTS 61 

between Italy and the United States, agreed to charge the estab- 
lished rates subject to the steamship agency commission as pre- 
scribed in the agreement and to deferred rebates not exceeding 
10 per cent, of the freight paid by shippers who agree to ship 
exclusively via the conference lines. Fixed freight rates are 
also established in the so-called "Baltic Pool" agreement, to 
which the four lines engaged in the trade between Baltic ports 
and the North Atlantic ports of the United States were parties 
before the European War broke out.^ The N. D. L. V. West- 
bound Freight Agreement, fixing the freight rates from the 
ports of the north German seaboard, Holland and Belgium to 
the ports of the United States, also prescribed fixed rates for 
general cargo, although certain heavy commodities could be car- 
ried at rates not below a prescribed minimum. Fixed rates are 
likewise prescribed in the agreements or understandings that 
govern the lines operating from New York to Australia, from 
New York to South, East and West Africa, from New York to 
Asia via Suez and return, from New York to most South Ameri- 
can ports and return, and from Asia to the Pacific coast ports 
of the United States.^ 

Minimum rate agreements are more numerous than fixed rate 
agreements, particularly in the freight and passenger business of 
the North Atlantic route. The numerous North Atlantic passen- 
ger conferences (charted in Chart No. VI) that governed 
the passenger business before the outbreak of the war in Europe 
established minimum first and second-class fares for each con- 
ference steamer, and a general minimum rate for steerage traffic. 
The steerage traffic was pooled, however, and any lines that 
obtained more than their allotment of steerage passengers were 
required to advance their steerage rates regardless of the pre- 
scribed minimum, so as to divert traffic to the short-tonnage 
lines. In the eastbound and westbound freight traffic between 
American North Atlantic ports and the United Kingdom, and in 
the eastbound trade from New York to Mediterranean ports, the 
lines are also governed by minimum rate agreements. The lines 
meet in conference and notify each other of their minimum rates 
upon a large selected list of articles, the rates thus filed being 

*The Hamburg-American Line, North German Lloyd Line, Wilson 
Line, and Scandinavian-American Line. 

* House Committee on the Merchant Marine and Fisheries, Proceed- 
ings in the Investigation of Shipping Combinations, IV, p. 282. 



62 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

subject to change only after an agreed period of notice varying 
from 30 to 60 days. The lines agree not to take freight (certain 
bulk articles being excepted) below the agreed minimum rates, 
but any line can serve notice that at the end of the designated 
period it will change these rates. ^° 

The various North Atlantic-European freight rate agreements 
are charted in Chart No. VII. 

When the service of particular lines is indirect or slower 
than that of others serving the same ports, the conference lines 
sometimes agree upon differential rates so as to enable the 
former to obtain a fair share of available traffic. Some of the 
North Atlantic passenger agreements, for example, provide for 
dififerential fares for first and second-class passengers carried 
on certain steamers; and the Royal Dutch West India Mail 
Line is permitted to charge freight rates 5 or 10 per cent, under 
those of the Red "D" Line on freight shipments between New 
York and Venezuelan ports. 

Ocean Line Pools 

Many ocean lines go further than to agree upon their rates. 
Some of them enter into "pooling" arrangements so as to de- 
stroy the incentive of any of the conference lines to undercut 
the agreed rates. The conference agreements may provide either 
for a traffic pool or a money pool, although in practice the two 
are so closely allied that the one merges into the other. Their 
purpose in either case is to guarantee that each conference line 
will obtain a fair share of all freight or passenger monies in- 
cluded in the agreement, and that each will carry a fair amount 
of traffic. The North Atlantic passenger line conferences operate 
typical traffic pools. In the N. D. L. V. agreement of 1892, for 
example, it was provided that the total number of steerage 
passengers carried from European ports north of Cadiz or from 
British ports to or via the United States and Canada shall be 
divided according to the following percentages: 

The North German Lloyd Line, 39.7 per cent. 
The Hamburg-American Line, 24.8 per cent. 
The Red Star Line, 13.5 per cent. 
The Holland-America Line, 8 per cent. 
For the British lines, 14 per cent. 

*" House Committee on the Merchant Marine and Fisheries, Proceedings 
in the Investigation of Shipping Combinations, IV, p. 282. 



RATE AND TRAFFIC AGREEMENTS 63 

In 1909, when the agreement was renewed, the proportions of 
the four N. D. L. V. Hnes were changed so that the westbound 
steerage passengers carried by them were divided as follows: 

The North German Lloyd Line, 42.46 per cent. 
The Hamburg-American Line, 31.38 per cent. 
The Red Star Line, 15.55 per cent. 
The Holland-America Line, 10.61 per cent. 

This traffic agreement required each line to render statements 
of the number of passengers carried and the amount of tonnage 
employed three times each month to the secretary of the con- 
ference, who then prepared monthly accounts showing the posi- 
tion of each line. If the tonnage employed by a given line was 
increased the line was entitled to a stipulated increase per 1,000 
tons in the number of steerage passengers carried, and if its 
tonnage declined, its allotted share similarly decreased. If the 
number of steerage passengers actually carried by a line was 
above or below its allotted percentage of total steerage business, 
it could, upon notification of the secretary, take measures to 
bring about a correct adjustment; and if at_the end of any year 
the annual steerage traffic of a given line exceeded its propor- 
tion it was required to pay to the lines that did not reach their 
allotted quota an agreed amount or so-called "compensation 
price" per excess steerage passenger. 

Most steamship line pools, however, are essentially money 
pools. AT money pool may include merely the freight resulting 
from a single commodity or classification of articles, as in the 
case of the "Baltic Pool," previously mentioned, in which the 
freight received from certain commodities carried between the 
Baltic ports and the American ports of the North Atlantic are 
distributed in accordance with agreed percentages. The total 
freight monies of certain conference lines may, however, be 
pooled, as was done under the N. D. L. V. westbound freight 
agreement. A more common arrangement, especially in long- 
distance trade, is to pool the net freight revenues resulting from 
the carriage of all freight cargoes, i.e., certain expenses incurred 
in the operation of the steamers, transshipment cost, stevedores' 
wages, agency commissions, etc., are deducted from gross freights 
and only the remainder is divided among the conference lines 
according to agreed proportions. 



64 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Examples of such pools are the Mediterranean westbound 
freight pool, mentioned above, the Calcutta-Pacific Pool,^^ ap- 
plicable to freight shipped from Calcutta to American Pacific 
coast ports, and the American Asiatic pools,^- applicable to 
the eastbound and westbound freight shipments between the 
Far East and the Atlantic ports of the United States via the 
Suez Canal. The specific deductions made in order to arrive at 
net freight vary in the different pooling agreements. In some 
pooling agreements, moreover, only a portion of the freight 
money is pooled. The Hamburg- American and the Royal Mail 
lines pooled 50 per cent, of their earnings (except those derived 
from certain special commodities) in the trade between New 
York and Jamaica, Colon and Colombian ports; and the con- 
ference Hnes " in the New York-West African trades pooled 
75 per cent, of both their freight and passenger receipts. 

The percentages agreed upon are usually allotted to the in- 
dividual lines of a conference, but they may be allotted to groups 
of lines. In the New York- West African pool the money is 
divided equally between two groups, comprising the British and 
German conference lines, respectively; and in the Mediterranean 
westbound freight pool there is an equal division between a group 
of Italian lines and another group of British and German 
lines. 

Some pools are traffic pools as well as money pools, "the lines 
aiming to divide both the volume of freight and the freight money 
in the same percentage for both." ^* In the "Baltic Pool," for 
example, each of the four conference lines was obliged to carry 
a volume of freight no greater than the percentage of revenue 
allotted to it ; if it over-carried, it would, at the end of each period 
of six months, pay the difference to the under-carried lines in 

" Bank Line, Canadian Pacific Railway Company's Steamship Line, 
China Mutual Steam Navigation Company, Great Northern Steamship 
Company, Ocean Steamship Company, Nippon Yusen Kaisha, Osaka 
Shosen Kaisha, Tpyo Kisen Kaisha, Pacific Mail Steamship Company, 
Indo-China Steam Navigation Company, and the Apcar Line. 

" American and Oriental Line, Barber and Dodwell Lines, United 
States and China-Japan Steamship Company, American-Asiatic Steam- 
ship Company, Anglo-American Oil Company, and American and Man- 
churian Steamship Line. 

" Woermann Line, Hamburg-American Line, Hamburg-Bremen-African 
Line, African Steamship Company, British and African Steam Navigation 
Company, Elder Line, and Elder, Dempster & Co. 

" W. G. Sickel, "Pooling Agreements," in The Annals of the Amer- 
ican Academy of Political and Social Science, p. 149, September, 1914. 



RATE AND TRAFFIC AGREEMENTS 65 

cash. When necessary, a flow of traffic from one Hne to another 
was forced by readjusting their rates until the full percentages 
were secured. 

Other Methods of Controlling Competition Between Con- 
ference Lines 

The traffic pool, which is really a method of apportioning 
traffic between conference lines, differs somev»?hat from a traffic 
agreement which limits the volume of freight that certain lines 
may carry. The White Star Line, which operates an indirect 
service from New York to Australian ports by way of Liverpool, 
for example, has an oral understanding with the through direct 
lines ^^ that it will not carry more than one-quarter of the total 
measurement cargo carried to Australia by the four lines com- 
bined. The White Star Line does not, however, pool its traffic 
or earnings with the direct lines, nor is it hindered in the quota- 
tion of its rates. 

The traffic of conference lines is frequently apportioned in 
a measure by agreements restricting the number of sailings of 
each line. In the American-Brazilian trade, for example, before 
the outbreak of the European War, the Lamport and Holt Line, 
the Prince Line and the joint service of the Hamburg- American 
and Hamburg-South American lines were each allowed 24 sail- 
ings per year from New York ; and the sailings from Brazil of 
the Lamport and Holt Line were unrestricted, while those of the 
Prince Line were limited to 24 sailings to New York and 12 to 
New Orleans. The German lines were limited to 24 sailings to 
New York per annum, and they agreed to withdraw entirely from 
the Brazil-New Orleans trade. The previously mentioned New 
York-Orient agreement of the lines operating via the Suez Canal 
also limits the sailings of the conference lines, and provides for 
mutual arrangements as to the order in which their vessels may 
take the berth. 

A variation from this method of apportioning traffic is fol- 
lowed by the direct lines in the trade from New York to Aus- 
tralia. Their agreement stipulates the vessel tonnage that each 
line may provide. The American and Australian S.S. Line is 

"American and Australian Steamship Line, United Tyser Line, and 
United States and Australasia Steamship Company. 



66 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

allotted 42j'< per cent, of the tonnage, the United Tyser Line 35 
per cent., and the United States and Australasia S.S. Co. 22j^ 
per cent. In the outbound trade from the United States to South 
and East Africa the conference lines similarly agreed that the 
Union Castle Line may provide two-sevenths of the tonnage, and 
the Bucknall S.S. Line, the Clan Line, the Hansa Line, the 
Houston Line, the Prince Line, one-seventh each. 

The traffic may, moreover, be apportioned by allotting the 
ports of sailings. Thus the Hamburg-American and North Ger- 
man Lloyd lines in the trade from all American ports north of 
Savannah allot to each other respectively the ports of Hamburg 
and Bremen, The N. D. L. V. conference similarly reserves 
certain European ports to each of its four members. The New 
York and Cuba Mail Line and the Compania Maritima Cubana 
have apportioned Cuban ports in the Cuba-New York trade ; the 
Royal Mail Line, in its agreement with the Hamburg-American 
Line, agreed not to extend its American service to Santo Marto 
vand the ports of Haiti ; and the Russian East Asiatic Line agrees 
to confine its American trade to Russian ports when possible, 
and to maintain the rates of the Holland-America Line in case it 
is obliged to call at Rotterdam." 

Methods of Controlling Competition of Non-Conference 

Lines 

One of the most effective measures taken by some of the 
conference lines to protect themselves against the competition 
of outside, non-conference lines is the deferred rebate system. 
Shippers are promised a rebate of 5 or 10 per cent, of their freight 
payments at the end of designated periods of three, six or twelve 
months, provided that meanwhile they have given their exclusive 
support to the conference lines. The system jsnow illegal under 
the Shipping Act of September, 1916, so far as the trade of the 
United States is concerned, but was especially common in the 
long-distance trades, such as the trade at South American and 
Oriental ports. Deferred rebates may be paid even by lines that 
are not members of a conference. 

The use of "fighting ships," or collective competition, has also 

"House Committee on the Merchant Marine and Fisheries, Proceed- 
ings in the Investigation of Shipping Combinations, IV, p. 284. 



RATE AND TRAFFIC AGREEMENTS dl 

been utilized as a means of protection. There have been instances 
where, in order to destroy the competition of non-conference 
lines, certain_st£aiiiers_were set aside to undercut the rates of 
outside lines and .to_ sail on the same days 'and between exactly 
the same ports. Sometimes a separate company was incorpor- 
ated to operate the fighting ships, the future use of which in the 
American trade is also prohjbite.d by the Shipping Act of Sep- 
tember, 1916. '~'^~" ■ 

Conference lines, either individually or as a group, may also 
make contracts with shippers, whereby in return for reduced 
rates and an agreed service the shippers agree to dispatch via 
the conference lines their entire shipments to certain ports dur- 
ing agreed periods. The privilege of securing such contracts 
is usually open to all shippers alike, but has at times been a source 
of discrimination. Contracts have been made with large shippers 
for all or a part of their freight at lower rates than those quoted 
on smaller quantities of similar commodities. The Shipping Act, 
however, prohibits unfair discriminations in the future. Numer- 
ous preferential agreements have also been made with various 
American railroads. 

Complaints Against Conferences 

The conferences, agreements and understandings of ocean lines 
have sometimes been complained of on the grounds that their 
monopolistic power, even though not always complete, is liable 
to abuse. They have at times prevented the establishment of new 
lines and crushed fiori-conference lines ; or they may have exerted 
a certain degree of arbitrary power over rates, dominated ship- 
pers, been indifferent as to the landing of freight in proper con- 
dition and slow to settle claims. They have sometimes granted 
special rates and accommodations to large shippers, and refused 
to publish tariffs and classifications. Their secrecy, and question- 
able practice of paying deferred rebates, and their occasional op- 
eration of fighting ships have especially been sources of com- 
plaint. There is nothing inherent in the complaints mentioned 
that cannot be remedied by proper remedial legislation. Indeed, 
the most objectionable features of ocean conferences and agree- 
ments have been prohibited by the Shipping Act of September, 
1916, and their entire administration has been subjected to super- 



68 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

vision by the United States Shipping Board. The advantages of 
ocean conferences and agreements both to the lines and to the 
shippers need not be sacrificed in order to eliminate their dis- 
advantages. 

Advantages of Conferences 

Arbitrary rate discrimination by ocean conferences is the ex- 
ception. For every such instance there are many in which the 
conferences, by controlling unrestricted competition, have made 
the rates to all shippers at a given port more uniform. For 
every arbitrary discrimination between countries there are many 
instances in which conferences have maintained the rates from 
the United States to foreign markets on a parity with those from 
other countries. The arbitrary increase of rates by conferences 
is, likewise, exceptional, because they cannot ordinarily disregard 
the competitive forces mentioned in the preceding chapter. All 
such arbitrary action could be further restricted by government 
supervision. It should be remembered that there is no more 
prolific cause of discrimination than unrestricted competition. 

Ocean conferences, moreover, benefit both the conference lines 
and the shippers by stabilizing rates. The merchant engaged in 
international trade desires an adequate service at rates that are 
reasonable and fairly stable; fluctuating rates seriously inter- 
fere with trade, whether it be domestic or international. Sudden 
and large changes, often characteristic of ocean rates, may in- 
terfere with the development of commerce as seriously as the 
unstable competitive rates by rail in the United States have in 
times past hampered the industrial development of different sec- 
tions of the country. Reasonable stability of rates reduces the 
speculative uncertainty of shipping, it facilitates the calculation 
of net prices, it reduces the complaints of foreign customers, 
steadies the flow of international trade, and makes it possible for 
both shippers and carriers to enter more readily into forward 
contracts for the carriage of freight. 

The chief benefit of ocean conferences to shippers, however, 
is in the improved service which they make possible. Confer- 
ences reduce the cost of the line service, and while this increases 
the profits of the line, it also makes possible a lower level of rates 
and a higher standard of service. For eveiy instance of indiffer- 



RATE AND TRAFFIC AGREEMENTS 69 

ence to the welfare of shippers, there are many in which ocean 
conferences have promoted regularity of service, a better dis- 
tribution of sailings, and ultimately the operation of more and 
better vessels than the lines would have dared to provide if in- 
terline rate competition were absolutely unrestricted. The in- 
stances in which conferences have prevented a new line from 
entering a trade or have crushed a non-conference line should 
be balanced against the large number of weaker conference lines 
which would probably be crushed or would suffer severely if they 
engaged in uncontrolled competition with their stronger fellow 
members. Against the scattering instances where conferences 
may have discriminated unfairly against certain ports should be 
balanced their ability to distribute their cost of service more eco- 
nomically so as to increase the number of sailings at the smaller 
ports where competitive services would be unprofitable. On 
well-established trade routes where the flow of traffic is heavy 
in volume it should, moreover, be borne in mind that most of the 
conferences have to do almost entirely with rates and earnings. 
Nowhere in the world has such progress in ship construction and 
service improvement been made as in the North Atlantic pas- 
senger business, and yet the great lines that compete so keenly 
as regards the kind of service rendered are parties to rate agree- 
ments and pooling arrangements. Conference control over rate 
competition so enhances the security of the capital invested in 
these ocean lines as to render it easier for them constantly to im- 
prove their facilities and yield to the demands of the traveling 
public. 

These benefits to the shipper and the ocean traveler may, how- 
ever, in individual instances, be largely nullified by the steamship 
conferences, if they follow a policy of restricting the development 
of the service, and a policy of high rates and small volume of 
business instead of low rates and maximum traffic. Instances 
are not wanting of arbitrary action on the part of the steamship 
organizations to prevent outside lines from interfering with the 
established traffic of the associated companies, or to become 
members of their conferences, and shippers have sometimes been 
penalized for patronizing lines not belonging to the combination. 
The tendency of those possessing exclusive privileges is to seek 
vigorously to retain such privileges against outside interference; 



70 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

accordingly, it is clear that conferences among ocean carriers, 
which seem to be rendered necessary by the severity of unre- 
stricted competition, should be carefully supervised and regulated 
by governmental authority, as is required by the Shipping Act of 
September, 1916. 



CHAPTER VI 
OCEAN FREIGHT FORWARDING AND FREIGHT BROKERAGE 

A DISCUSSION of the traffic organization of ocean shipping 
would be grossly incomplete without mention of ocean freight 
forwarders and freight brokers. Ocean freight forwarding, 
sharplydefinedj^ refers to the actual forwarding and handling of 
shipments by forwarders acting as agents for ocean shippers, 
and ocean freight brokerage similarly defined refers to the book- 
ing of Cargoes or the engaging of freight by freight brokers, but 
in practice these Two functions are so frequently performed by 
the same concerns that this distinction is not always maintained. 
The many ocean freight forwarders found at all large ocean 
ports and at some interior points perform a forwarding and 
also a freight brokerage business, and their profits are received 
from both. 

Nature of Services Performed 

Acting as freight brokers these ocean freight forwarders assist 
the steamship companies in securing freight. There has some- 
times been a tendency on the part of the ocean carriers, par- 
ticularly during the war when there was no difficulty in obtaining 
cargoes, to prefer to book cargoes without the medium of bro- 
kers, and to refuse to pay the usual brokerage, but in normal 
times, when cargoes are not readily at hand, many steamship 
lines have regarded the services of freight brokers as of value 
to them. The economic value of the ocean freight brokerage 
business does not, however, end with the securing of freight for 
the steamship lines. Many manufacturers and shippers, par- 
ticularly those located in the interior, depend upon ocean freight 
forwarders and brokers to keep them fully posted on ocean 
freights and services and to engage their cargo space for them. 
The difficulty of obtaining current ocean freight rates which are 
subject to sudden fluctuations, and of engaging space was con- 

71 



72 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

sidercd of sufficient value by many shippers during war condi- 
tions to induce them to pay the brokerage fee which some of the 
steamship lines for the time being refused to pay, or would pay 
only to such forwarders as agreed to become members of a speci- 
fied freight brokers' association. Importers also find ocean 
freight forwarders and brokers a convenient source of informa- 
tion regarding ocean freights on imported cargoes. As these im- 
port freights are frequently quoted by the steamship agents at 
the foreign ports, difficulty is at times experienced in obtaining 
information from the steamship agents located in the United 
States. 

When actm^ as ocean freight forwarders these concerns, serv- 
ing as agents of shippers who prefer not to handle their export 
shipmeirfs at the ports of export and beyond, take entire charge 
of an export shipment from point of origin to final destination 
or throughout any part of the voyage or trip. In doing so they 
act as port representatives who receive the shipments consigned 
to them, make the necessary arrangements with rail and ocean 
carriers, have the shipment carted or lightered, see that it gets 
aboard the vessel, attend to the preparation of the shipping docu- 
ments described in subsequent chapters and any trade formali- 
ties that may arise at the ports, pay freight and insurance pre- 
miums if so instructed, clear cargoes through the custom house, 
and generally attend to the transportation and shipping services 
incident to an export or import transaction. Under war condi- 
tions the forwarders have also attended to the obtaining of rail- 
road shipping authorities, and have applied for or obtained in- 
formation regarding export licenses. Whenever it becomes 
necessary to store freight after arrival at the port they make ar- 
rangements for storage. They frequently act not only as rep- 
resentatives or agents at the port of export, but provide a 
through freight service including delivery at inland destina- 
tions in foreign countries. 

Ocean freight forwarders may also perform a service to the 
shipper when they quote through freight rates to a foreign desti- 
nation. Railroad companies in recent years have only in ex- 
ceptional instances quoted through rail-ocean rates from interior 
points in the United States to foreign ports, and ocean freights 
in the foreign trade usually apply from the American port of 
export to the foreign port of entry. Ocean freight forwarders, 



FREIGHT FORWARDING AND FREIGHT BROKERAGE 73 

however, stand ready to quote a freight charge that will carry 
the export shipment through to interior destinations in foreign 
countries. Interior destinations to which they will not quote 
through rates are exceptional. 

They are, moreover, in a position to offer reduced rates op 
small packages which if shipped directly by the shipper in the 
ocean freight service might come into conflict with the relatively 
high minimum freights provided for in the bills of lading of many 
steamship companies. By ccunbining the small packages of a 
number of shippers, freight forwarders may quote rates on pack- 
age freight that result in a saving to the individual shippers and 
at the same time yield a profit to the forwarder. Ocean freight 
forwarders when handling package freight are performing an 
international express service. Several of the regular domestic 
express companies, — the American, Adams and Wells-Fargo & 
Company, — are also engaged in the handling of international ex- 
press goods. They do in fact conduct a general ocean freight 
forwarding business, but because of the large number of ex- 
press ofifices maintained by them throughout the country they 
reach a large number of shippers with small express packages. 

The difference between carload and less than carload railroad 
rates or the privilege of mixing freight in carload lots author- 
ized in some railroad tariffs also enables freight forwarders at 
times to forward export freight from interior points to the port 
of export at a saving to the individual shippers of less than car- 
load lots and a profit to themselves. Some of the ocean freight 
forwarders have established offices at interior points, not only 
to reach Jnterior exporters more directly, but also to consolidate 
shiprnents into carload lots. Especially important in this con- 
nection were the export tariffs of the transcontinental railroads 
which quote not only export class rates and commodity rates on 
many specified commodities to Pacific coast ports when destined 
to Oriental, Australasian, and in a few instances to Central and 
South American, Mexican and Hawaiian destinations, but also 
so-called "all commodities" rates applicable to all but certain 
excepted export commodities when routed overland in straight 
or mixed carloads having a minimum carload weight of thirty 
thousand pounds. Interior forwarders engaged in thus consoli- 
dating or bunching less than carload shipments for export are 
engaged in a railroad forwarding business as well as in the usual 



74 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

business of receiving shipments at the ports and forwarding 
them to foreign destinations. 

Ocean freight forwarders render a further service to shippers 
in case the latter wish freight charges to be collected from tlie 
consignee at destination, although ocean carriers insist upon 
prepayment of freight. An ocean freight forwarder may for- 
ward shipments on a collect basis, even though he is required 
to prepay the freight demanded by the steamship company, thus 
carrying the sh|g2ej^untn_the foreign agent of the forwarder.,has 
collected the freight from the consignee at destination. 

They also endeavor to handle goods refused by the consignee 
to the best interests of the export shipper. When instnicted by 
the exporter they undertake to provide the marine insurance de- 
sired by him, thereby relieving him of the necessity of himself ob- 
taining it from marine insurance companies or underwriters. 

Some of them assist the exporter in the United States and 
foreign consignees abroad in financial matters. Shippers may 
arrange with their ocean freight forwarder to advance the in- 
voice price of their shipments, the forwarder then collecting 
from the consignee either through his foreign agent at destina- 
tion or by means of drafts handled through the regular inter- 
national exchange bankers or brokers. 

The financial work of the domestic express companies who 
conduct a foreign express and forwarding business also includes 
the issue of travelers' checks, foreign money orders, and letters 
of credit ; the transfer of funds by telegraph ; and the operation 
of a "foreign postal remittance" service for the remittance of 
money to persons not located near a bank. 

Some of the ocean freight forwarders have also branched out 
into the field of foreign trade as distinct from shipping, in that 
they ofifer to give trade information useful to their customers in 
buying or selling goods abroad. Some have gone so far as to 
act in the capacity of foreign purchasing or selling agents. 

Business Organization of Ocean Freight Forwarders 

The business organization of ocean freight forwarding con- 
cerns is subject to so many variations that it is impossible to con- 
struct a single organization chart that conveys a comprehensive 
view or is in all respects typical. Chart No. VIII accompanying 



FREIGHT FORWARDING AND FREIGHT BROKERAGE 75 

this chapter will, however, convey a general idea of how many 
of the larger concerns are organized to do business. The or- 
ganization of each of the large forwarding companies of course 
varies with the volume of business handled, the extent to which 
they specialize in shipments to particular parts of the world, the 
kind of services offered and the differing views of its firm mem- 
bers or higher officers as to how its forces should be effectively 
organized. There are also smaller forwarding concerns, the busi- 
ness organizations of which are less extensive than that indicated 
in the chart. 

The main office of most of the ocean freight forwarders is lo- 
cated at some one of the seaboard ports, the larger forwarders, 
howeverTTiavrhg^agents or branch offices at some of the other 
ports so as to facilitate the routing of inland freight through 
more than one port and also so as to share in the freight origi- 
nating at several ports of export. They have, moreover, seen 
fit to establish agents or branch offices at various interior points 
at which much export freight originates so as to get into closer 
touch with interior manufacturers and exporters and to engage 
in the work of consolidating less than carload lots of export 
freight. An ocean freight forwarder mainly located at the sea- 
board may have an "overland department" at Chicago or other 
interior points to handle overland traffic routed through the ports 
of the Pacific Coast. Some concerns known as interior forward- 
ers have their main office at an interior point, in which case they 
may have agents, representatives or branch offices at some of 
the ocean ports and at other interior shipping points. 

American ocean freight forwarders and domestic express com- 
panies engaged in the international express or forwarding busi- 
ness Handle most of their business abroad through foreign con- 
cerns with whom they have made business arrangements. Some 
of them have estabhshed their own branch offices or agents at a 
limited number of the principal foreign cities in which they 
operate, but they do not for the most part have their own busi- 
ness organizations abroad. They have entered into agreements 
with foreign freight forwarders or so-called "spediteurs," the 
American forwarder agreeing to consign to his foreign agent all 
freight or express matter forwarded to the territory covered by 
such agent; and the latter in turn obligating himself to handle 
such consignments and to forward through the American for- 





•a 




a 












a « 




o=^ 














<3 a 




•- c 












^ 




o 



Senior Clerk or 

Manager In Charge 

of Transportation 

r>opartment 




a 

2 

CO 

o 

a 

o 










o -g 
a o 










V 



FREIGHT FORWARDING AND FREIGHT BROKERAGE 77 

warder who is party to the agreement such freight and express 
matter as is forwarded to United States, and is not otherwise 
specifically consigned. Each transaction is handled on the basis 
of a waybill which gives instructions to the foreign agent and 
which he returns with a statement of his charges. These way- 
bills and other forwarding documents will be described in 
Chapter XI. 

The ocean freight forwarding and foreign express business 
differs from the domestic express business, also, in that no special 
time contract for the transportation of cargoes is entered into 
with the ocean steamship companies. The practice in the do- 
mestic express business of signing contracts under which an ex- 
press company agrees for a stated period of time to pay a percent- 
age of its gross receipts to a railroad and under which the express 
company receives a monopoly of the express business handled 
on a given railroad route does not prevail in the ocean forward- 
ing business. Ocean freight forwarders in the overseas trade are 
free to route their consignments via the first available steamer. 
These relations with ocean steamship companies are in this re- 
spect like those of other shippers. Such time contracts as have 
been entered into by express or forwarding and steamship com- 
panies are found mainly in the coastwise and Great Lakes busi- 
ness, where the number of available steamship lines between two 
points is small or the sailings of a particular line are frequent, 
thus approximating the conditions which obtain when domestic 
express matter is shipped by rail. 

The main office of the typical large ocean freight forwarding 
organization shown in Chart No. VIII is assumed to be located at 
the port of New York. The members of the firm, of which there 
may be several, generally supervise the entire business organiza- 
tion, but are largely occupied in keeping in touch with the firm's 
customers and in booking freight with steamship companies. 
One or more Brokerage and Forwarding Managers, reporting to 
the firm members, generally supervise the forwarding stafif but 
are likewise engaged largely in booking cargoes. The firm mem- 
bers and these managers together conduct the firm's freight bro- 
kerage as distinct from its forwarding business. In some forward- 
ing organizations the booking of freight is handled directly by 
the managers or chief clerks in charge of the groups of the clerks 



78 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

or departments that forward freight to particular parts of the 
world. 

The forwarding staff of a large ocean freight forwarding 
house is likely to be under the immediate charge of a Manager 
or Chief Clerk in Charge of Forwarding, although no definite 
terminolog}' has been developed. If a large volume of shipments 
is forwarded to various parts of the world the forwarding work 
under his supervision is in many instances subdivided geographi- 
cally. Thus in the chart, the forwarding of shipments to four 
sections of the world is handled by separate groups of men. 
Each group or department is in charge of a senior clerk, under 
each of whom are from two to five junior clerks and one or two 
stenographers. In some forwarding organizations this work is 
definitely divided among departments, each of which is in charge 
of a Forwarding Manager. In an organization of this kind the 
shipments of a customer are split up geographically and the entire 
forwarding work connected with a particular shipment is handled 
by the group of clerks who specialize on forwarding cargoes to 
the section of the world to which the shipment is destined. 

There may, however, be a Transportation Department in an 
organization of a large ocean freight forwarder to follow up 
cargoes regardless of destination so as to see that delivery of 
them by lighter or truck is effected on the days specified in the 
shipping permit obtained from the steamship companies. It may 
consist of but one clerk or a senior and junior clerk who receive 
copies of the lighterage and trucking instructions issued by the 
men in charge of forvv^arding. 

No stenographic department has been provided in the forward- 
ing organization which underlies this description, the necessary 
number of stenographers being assigned, so far as practicable, 
to the various groups of clerks and officials where needed. 

Instead of organizing the forwarding staff on geographical 
lines it may be organized on the basis of individual customers, 
i.e., all the forwarding work of a given shipper may be turned 
over to a particular clerk, regardless of the sections of the world 
to which his shipments are destined. This is a convenience to 
the shipper in that he deals continually w'ith the same individual, 
who becomes expert in his shipping affairs. It does not, how- 
ever, lead to the technical knowledge of and specialization in the 
varying shipping requirements of different foreign countries that 



FREIGHT FORWARDING AND FREIGHT BROKERAGE 79 

is attained when forwarding work is organized geographically. 
The advantages of an organization based on separate customers, 
moreover, are attained at least in part in the usual geographically 
organized forvv^arding staff because an effort may be made to 
assign clerks within the various territorial groups to large custom- 
ers. The cargoes of an exporter shipping to different parts of 
the world are not in this case handled by the same clerk, but all 
of those destined to Europe may be handled by a particular man 
in the group of clerks or department assigned to European ship- 
ments, those destined to the Far East by a clerk in the Far East- 
ern group or department who always handles the Oriental ship- 
ments of this shipper, etc. 

An accounting staff handles the bookkeeping, auditing, and 
financial work in connection with both the freight brokerage and 
forwarding operations of the ocean freight forwarder. Besides 
keeping the necessary records this department sends bills to the 
shippers whose freight is forwarded; handles foreign exchange 
drafts and pays the shipper in case the forwarder is financing his 
transactiohsT and settles the freight bills of the steamship com- 
panies and the bills of truckmen and others with whom the for- 
warder has dealings. 

In the forwarder's business organization outlined in the ac- 
companying chart the Chief Accountant, who supervises the ac- 
counting staff, also acts as the general office manager. As such 
he supervises the Filing Department where all the correspond- 
ence and copies of the documents issued in connection with each 
transaction are filed. The nature of these forwarding documents 
is discussed in Chapter XL Switchboard operators and mes- 
sengers also report to him. 

There may also be an Advertising Department which sends 
circulars to customers and prospective customers, containing in- 
formation as to forv/arding services, steamship sailings, and 
ocean freights. This department also places advertisements in 
shipping and trade journals and other publications read by ex- 
porters and importers. 

Freight Brokerage and Forwarding Charges 

The charge collected for booking cargo space is known as 
brokerage and is customarily one per cent, or thereabouts of the 



80 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

amount of the ocean freight bill. This has usually been paid by 
the steamship companies because they have ordinarily depended 
in part upon freight brokers and forwarders to book cargoes for 
them. Under war conditions, however, when they experienced 
no difficulty in securing cargoes, the steamship companies in 
many instances refused to pay brokerage, or would pay it only to 
forwarders becoming members of an approved freight brokers' 
association. Many forwarders then collected brokerage from 
the shippers or parties for whom they engaged freight. This 
brokerage is collected, whether or not the cargoes booked are 
actually forwarded by the forwarder. 

Additional charges are collected from the shipper or party 
for whom freight is forwarded. There may be a flat "forward- 
ing" or "shipping service" charge of say two dollars per ship- 
ment; also an additional charge of say $1.50 for issuing bills of 
lading; and a charge of say fifty cents for issuing the shipper's 
customs clearance. The practice of forwarders in this regard 
is not uniform. Sometimes they also collect an additional charge 
known as "commission" when forwarding commodities involving 
unusual care or services on the part of the forwarder. 

The brokerage received by forwarders acting as freight bro- 
kers in engaging freight, and the additional charges collected for 
forwarding services are in practice closely related. If no bro- 
kerage were received the small charges specifically collected for 
forwarding services would in many instances not constitute ade- 
quate compensation. At times the ocean freight forwarder may 
also receive revenues from other sources. Thus if the shipper 
arranges to have the forwarder pay the invoice price of his 
cargo, i.e., finance his trade transactions, collection or discount 
fees may be charged. When marine insurance is engaged by a 
forwarder for a shipper the forwarder usually receives a com- 
mission from the insurance company or underwriter. Ocean 
freight forwarders usually act as marine insurance brokers or 
agents and receive compensation from the insurance concern in 
which the risks are insured. 

If the shipper requests the quotation of a through freight 
charge to an interior foreign destination on a consignment suf- 
ficiently large to be billed on a minimum steamship bill of lading 
without consolidation with other shipments, such through charge 
may or may not in a particular instance be somewhat higher 



FREIGHT FORWARDING AND FREIGHT BROKERAGE 81 

than the actual freights paid to the carriers by the forwarder. 
The railroad rate to the American port of export can be definitely 
ascertained from available railroad tariffs and the ocean freight 
rate to the foreign port of entry can be obtained from the steam- 
ship company, but the actual inland freight charges beyond the 
port of entry to a particular inland destination are not always 
readily ascertainable until after delivery is made. Forwarding 
clerks of some concerns are therefore supplied with general rate 
tables, which are applied in quoting through freight charges. In 
particular instances the through charge may prove to be higher 
than the actual charges paid by the forwarder, thus including a 
profit, but in other instances they may prove to be lower. For- 
warders, when possible, use the actual rate tariffs showing 
charges to interior destinations or obtain advices from their 
foreign agents, and when such tariffs or advices are not at hand 
they may refuse to quote a through rate. 

When forwarding ocean freight consignments that are too 
small to go forward without consolidation with other consign- 
ments because of the high minimum freights per ocean bill of 
lading charged by many steamship lines, the main profit of the 
forwarder may be derived from the difference between forward- 
ers' and ocean carriers' freight charges. The forwarder pays 
the steamship line for transporting a combined cargo including 
the small shipments of a number of shippers, and he in turn 
charges each individual shipper rates that are lower than the 
high minimum rate per bill of lading demanded by the steamship 
line, but sufficiently high to include a forwarding profit. The 
sum of the several rates paid to the forwarder on a combined 
shipment of small consignments exceeds the freight charge paid 
by the forwarder to the ocean carrier. The transaction may 
therefore be profitable both to the forwarder and his customers. 

Through rates on small package or express goods are in some 
instances quoted on the basis of printed express tariffs. The 
published rates for different weights, stated in the foreign tariffs 
of the American Express Company, for example, apply from the 
port of export to various foreign destinations and are charged 
in addition to the express rates from the interior point of origin 
in the United States to the port of export. Valuation charges 
per $100 are added to the express rates if the value of an ex- 



82 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

press package exceeds $50, and if insurance is desired the marine 
insurance charges stated in the tariff are added. 

It will be noted, however, that this tariff is not "iron-clad." 
It specifically states that "the variations in foreign rates allow 
no fixed schedule. To large or regular shippers, all responsible 
competition will be met." Elsewhere in this tariff it is stated 
that "special ocean rates on large shipments by express will be 
quoted upon application." Tariffs of this kind are used only in 
forwarding small packages and even then the rates contained in 
them serve merely as a maximum charge. 

Competition in Freight Forwarding Business 

The ocean freight forwarding business has in recent years 
become increasingly competitive. Not only are there a large 
number of forwarders who compete with each other, but they 
are as a group affected by the announcement of a number of 
ocean steamship lines, or the steamship agents operating them, 
that they will themselves act as freight forwarders. The rail- 
roads, moreover, have been issuing through or export bills of 
lading from interior points to foreign destinations.^ Large 
shippers are establishing direct agencies or branch offices at the 
larger ports, and some of the export commission houses or other 
trade agencies through whom exporters sell merchandise when 
not dealing directly with their foreign customers at times agree 
to act as port representatives. Trucking concerns may be en- 
gaged to transfer shipments at the ports ; insurance brokers to 
insure ocean cargoes; custom house brokers to enter imports at 
the custom house and even to forward import cargoes to interior 
destinations. The foreign package or express business, more- 
over, is effected by the international parcels post service which 
has been established to many countries by the Post Office De- 
partment through parcels post agreements ; and somewhat also 
by the issue of parcels receipts by a number of steamship com- 
panies.^ 

Ocean freight forwarders, however, continue to do a large 
brokerage and forwarding business because, as was formerly 
stated, they render distinct services. It is significant that many 
large interior shippers, instead of shipping on through railroad 

' See pp. 103, 104. " See p. 105. 



FREIGHT FORWARDING AND FREIGHT BROKERAGE 83 

export bills of lading, choose to consign their export cargoes 
to an ocean freight forwarder so as to take advantage of favor- 
able ocean rate fluctuations and a possible saving in port transfer 
expenses or to obtain some special service which the forwarder 
stands ready to perform. 



PART TWO 
OCEAN SHIPPING DOCUMENTS 






CHAPTER VII 
SHIPPING DOCUMENTS REQUIRED BY OCEAN CARRIERS 

In a study of practical steamship operation much depends upon 
a knowledge of the shipping documents required by the carriers, 
by the United States Government and by foreign governments. 
It is the purpose of this chapter to describe the contents of the 
essential documents required by ocean carriers ; the manner in 
which they are handled and the uses to which they are put. 

Cargo Contracts and Booking Records 

It is the ambition of every traffic manager, and freight agent, 
or loading broker, to have the available cargo space in his ves- 
sels fully engaged before the vessel arrives in port. Before the 
war, this was not always accomplished and cargo was frequently 
booked almost up to the day of sailing, but as this complicates 
the v/ork of the traffic department, causes confusion in the last 
hours before sailing and interferes with the efficient loading of 
the vessel, cargo is booked in advance whenever possible. With 
an absence of sufficient cargo there is little opportunity for se- 
lection, but when cargo is abundant the traffic manager and 
freight agents endeavor to so balance weight and measurement 
cargo and the amount of fuel taken on as to approach the point 
of maximum net earnings. 

Freight contracts are therefore closed with shippers either by 
mail or personally by freight agents, salesmen, solicitors or 
brokers. The typical freight contract reproduced in Form 1 
specifies the name of the shipper and his address, the name of 
the vessel, expected time of loading, destination, cargo descrip- 
tion, number of cases, bales, etc., and weight of cargo, the 
freight rate per cubic foot, or equivalent weight or measurement 
at ship's option, and a clause to the effect that the contract is 
m.ade subject to the terms of the bills of lading in use by the 
vessel's agents and the usual war clauses, customs and navai 

87 



88 



OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



regulations now or hereafter placed in force and in this particu- 
lar instance, also the rules of the New York Produce Exchange. 
As fast as cargo bookings are made, entries are made in the 
■freight engagement record of the Traffic Department. The 
loose leaf reproduced in Form 2 is so planned as to show at 
any particular time the amount of cargo that has been booked. 
The items entered are the name of the steamer, the port of sail- 
ing and destination, the weight and measurement of the cargo 



» I 
si 

« 2 






i 




New York, 3optemt)er aard.lglfl Contract No', - %* , -- 

FREIGHT CONTRACT Origrinal 

We confirm bookinfi made"«itha«BtQa-tiilla»»_k.Jtt4lhcirft_ln4.« 

^ 59 Br oji<if« y few york Ci ty __________«__. 

per S.t.eamex_J , i-r^n^A toj 



comroodity. 



J6BEJiia:JJJBE5- 



ol«-olot)k 

a c / a- b ag- ^ ranas- 



-40-1 bei 



flt rate of^ 



-7Q/--. 



.■ r .... . .>{>er_CU,rT.- 



,.or «<iumlcnt. 



weight or measurement, thip's option. 

TMi •oamct b ntde rab^Mt » : Tm3|« o« Bin. of L«dlii4 ia iii« br VcMr* A^cfik' tl aMU» Wof Ctowow O iW n »l «ad N«v«l, 
re^ulAMMW. BOW at bcrwftac p4«c«d in fcroc; ■ad ntlc* of Um New Tofk PK>duc« E»it<i< r . 

Accepted 
Ci<rrot< WIU.|AMS&WIGMORE^(ne.' Gastosl Vnxuiia & VicMots SnAUSHir Cowaiatwh. 



Form i. — Ocean Freight Contract 

booked, the number of packages, a description of their contents, 
time of delivery, with whom booked and the freight rates at 
which they were booked. 



Shipping Permits 

The various cargoes when booked may not be delivered in- 
discriminately or at any time, by the shippers, except by special 
arrangement in unusual instances. Cargo is usually delivered on 
shipping permits issued by the permit clerks of the Traffic De- 
partment, referred to in Chapter II. After being instructed by 
the Freight Traffic Manager or his Assistant as to the dates when 
the various cargoes which have been booked may be ordered 




pq 



o 



90 



OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



forward the permit clerks issue to the shippers permits of t le 
kind reproduced in Form 3. The permit here reproduced 
instructs the receiving clerk at a specified wharf or pier to receive 
from a named shipper on specified dates, certain packages of 
cargo of described contents, weights and shipping marks for 
shipment to a given port of destination in a designated steamer. 
It also indicates the number of the export declaration covering 
the shipment and contains various terms and conditions as fol- 
lows : 



Bvaaos 
7RC 
S 100 

V R C 
S 101 
T R C 

V 1/S 



4' 



/srt 



V.4 



■ »C4I >I*J«M 

THE OLOBE LINE 

Cadon, WiDiuu & Wigmore Steamship CorporadoD 

CEWERAl. ACEKT3 
10 PEARL STREET 
To the ReetMng Clerk, 

jlt p\f> T f. P.rj g RR J&jaey City Hop York, SfiJ.t.g^rjl - ■ 

. will please receive from MJ5aston_.WiU l_a.__Jk_5i£more_Inc^ 

fh^pment per Steamer JC for— BnfinOijUXeS. 




N0..3&. 



.79 18 



^ 



ESQ.. 



^V*" 

if aionjside <*MWWe«t»K- fronv-Se pt,^24/-2£_l 9lS ^^ — 



__2 .c/a-fiyelet3_ 
_8_c/s.J)Ss_-frajnea. 990 5_ 



^f^ 



8»2. 

IF 

05.« 



if3 



rrtrisrM rmu» ftr« •4Juilt4 on Uie b>*tg of * v»lu»tlon rut rtr*«!rn« 1100 pCT rMVaire : If Ihe vatm^V*^* row*! r«o»»-!» tn-*! T»hi»tlffn. U« 
t .KouM t« i'^l»r«<J enj * r»t« of fr«lglil b««*d th«r*)n RE ARRANGED AT TTME OF TAKING AUTtJ^S ITn.Mrr. crth'i-trU* l),i w"-** ar, 
i»rf «ubj«:t to the wr>l»r bin of hding provbion UaiiUnr U>« value ta involc* cost not nceeOiy^l^T.*r p*«Xssr »Bd na eh*fir« wUl b* ^»di 



e VeM br th« Ste&nuhip Or^orpanr for 



j|fc?^#r.» ; kod ■ 



] rabjpx to delay. d>nan 






llii£ 8ccorr^p«nied by rworo 

' than one day bclore 
date ol lAiling 



b Vw9 York Prof^flJ^ EJubuire nle^ Ko roodj raccjved AfUniam JaAiriter or 

THE OLOBE LINE 

Gaston. Williams & Wi^rrore Steamship Corporation 
Pef y.A.ROflSRTS. 



Form 3. — Shipping Permit 

1. Freight rates are based upon a valuation not exceeding $100 per 
package; if the value of the goods exceeds such valuation, the same 
should be declared void and a rate of freight based thereon be arranged 
at time of taking out this permit; otherwise the goods are received 
subject to the regular bill of lading provision limiting the value to 
invoice cost not exceeding $100 per package and no change will be made 
therein : 

2. The goods or any part may be held by the steamship company 
for the next steamer of the same line; and are received subject to delay, 
damage, or default from or consequences of riots, strikes, stoppage of 
labor and like disturbances. 

3. The steamship company's regular bill of lading shall be issued for 
the shipment and shippers are understood to have acquainted themselves 
therewith. The steamship company shall not become responsible for 
the goods as a carrier until they are actually loaded on the steamer; 
until such loading it shall be liable only as ordinary bailee for loss or 
damage caused by its fault, and be subject to all conditions, exceptions 
and limitations o* liability contained in its regular bill of lading. 



DOCUMENTS REQUIRED BY OCEAN CARRIERS 91 

4. Demurrage shall be allowed on lighters or craft in accordance with 
New York Produce Exchange rules. No goods are received Saturday 
afternoon or after 5 P.M. on other days unless otherwise endorsed 
hereon. 

5. Bills of lading accompanied by sworn clearance must be presented 
not later than one day before date of sailing. 

6. Shippers guarantee that no enemy of the United States of America, 
Great Britain or her allies are interested in this shipment. 

The shipping permits issued by some steamship hnes are simple 
documents which do not contain all of the terms and conditions 
enumerated above. They, however, serve their essential pur- 
poses in that they instruct the receiving clerk at a specified pier 
to receive designated cargo oh particular days. 

In issuing permits, care is taken to so order cargo forward as 
not to congest the pier or ship with cargo and lighters and at 
the same time enable the Dock, Wharf or Pier Superintendent 
of the Operating Department to stow the cargo quickly and with 
due regard to its order of discharge at destination ports, and its 
inflammable, bulky, heavy, fragile character or other stowage 
considerations described in the volume on Wharf Management. 
A record of the permits issued is usually kept on permit sheets, 
a copy of which is shown in Form 4. 

Dock Receipts 

As cargo for which shipping permits have been issued is de- 
livered by the shipper or his representative by truck, car or 
lighter, he is given a dock receipt which is usually issued by the 
Assistant Receiving Clerk of the Wharf Department. In issuing 
these receipts, notations are made of irregularities such as frail 
containers, shifting contents, or signs of tampering with pack- 
ages. Unless the shipper rectifies such irregularities or instructs 
the steamship company to do so, clauses may be inserted in the 
bill of lading relieving it of liability for damaged or improperly 
packed cargo.^ 

The dock receipt, copy of which is reproduced in Form 5, 
lists the packages received at the dock, giving a description of 
their contents, the number of packages, their shipping marks and 
their weight or measurement or both. It also names the steamer 
for which the cargo is booked, and the ports of shipment and 

*J. A. Slechta, Paper on "Practical Steamship Operation." 




5s; 



f! 2 



C/3 



P^ 



p2 




^j 



92 



DOCUMENTS REQUIRED BY OCEAN CARRIERS 93 

destination; it makes reference to the federal statute concern- 
ing the making and declaration of explosives or other dangerous 
articles; it contains a statement that the cargo is received subject 
to the conditions expressed in the steamship company's bill of 
lading and with the understanding that the carrier may substitute 
other steamers, that the port of destination must be marked on 
each package, and that the bills of lading accompanied by sworn 
clearances, should be presented not later than noon of the day 



"', ORIGINAL THE GLOBE LINE' no.. /Z.^ 

1 1 ll Gastoh Wiluams & WiGMORE Steamshp Corporatkw 

bJi% V^^ ■ general agents b^n„_^4^ 

M i^^ii ttW^Tx 20 FEARL STR£CT 

VM 

S ij-^ I' J tor rfiifmrat ky the Si. 5 afaaiPPr J '" R"»im.AArBg 

g:|»|rp Al ■< W >» «» A iT» » r »)A p>oA tn en daet «w«aag i^tmM, Lawivq ocoamfc W tx bwM by Jafycm 




»l.»Y^»t Rflft- y^ffc iota 
fi/{f tttf fa «(ipara>t gooj onier I 



jl 1 jg BUEJM AIRES 

■J'^lz T R C 

l|J:5 a 100/ST3 

I ^.3 «3 3 1013/14 

il-i-3-53 T R 

s « • -3 



mi 

ml 



T 1/3 




1 bale cloth 

2 o/a eyelets 

3 c/s bog frame 8» 



PORT Of DESTINATION MUST BE MARKED ON EACH PACKAGE. 



Form 5. — Dock Receipt 

before date of sailing. It is specified by some steamship lines that 
the dock receipts are to be returned with the bill of lading, i.e., 
be exchanged for them, but this is frequently not done in prac- 
tice. Dock receipts variously state that "all risk of loss or dam- 
age while goods are on dock awaiting shipment, however oc- 
curring, is to be borne by shippers" ; or "that merchandise on the 
wharf awaiting shipment is to be at owners' risk of loss or dam- 
age in every case and particular in which it shall not be proved 
that such loss or damage shall have resulted from the fault or 
negligence of the carrier or its servants." Each receipt is num- 
bered so as to facihtate its identification. 



94 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



Tally Sheets, Dock Sheets or Returns, Cargo Books and 
Stowage Plans 

Although the work of the Wharf Department is more fully 
described in the volume on Wharf Management, it is necessary 
at this point to refer to the tally and dock sheets and cargo 
books made at the piers because they are used by the Traffic 
Department in issuing bills of lading and in preparing the ship's 
manifest. As cargo is landed from lighters, cars or trucks for 
loading, each package or piece is tallied, measured and recorded 
on dock sheets (see Form 6) and damage to freight is noted 
by the receiving tallymen of the Wharf Department. All pack- 
ages as received are listed with the number of packages in the 
shipment, their marks, description of their contents, dimensions 
or measurements, their cubical contents, weight and shipping 
marks, permit and dock receipt numbers, names of shippers cor- 
responding to those on the permits, the name of steamer and the 
port of destination. Extension clerks then by means of conver- 
sion tables translate the measurements on these sheets into tons 
and consolidate the tallymen's report ready for calculation of 
freight. Each sheet is numbered, and a column is provided for 
inserting the number of the bill of lading. When comparison of 
the dock sheets with duplicate copies of shipping permits sent 
to the dock by the Traffic Department, shows that cargo was 
not delivered by the shipper on permit dates, the receiving clerk 
of the Wharf Department usually notifies the former on sepa- 
rate dock sheets designated as "not arrived." 

When cargo is loaded into the steamer's holds, lighterage 
clerks or tallymen, or sometimes, in case of foreign cargo carriers, 
subordinate deck officers or apprentices, make up tally sheets 
containing full particulars concerning each separate shipment. 
The items listed in the tally sheet reproduced in Form 7 are 
those contained in the dock sheets, a separate sheet, however, 
being made out for each shipment. 

The dock sheets and tally sheets are used for various purposes : 

1. They constitute an original record for the Wharf Depart- 
ment of all cargo received at the docks and loaded into vessels. 

2. Tally sheets are of assistance to the Wharf Department 
in the preparation of the so-called sfozvage plan (see Form 8), 




95 



96 



OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



which graphically shows the disposition of cargo within the holds 
of the vessel and is of utility in discharging cargo and in prepar- 
ing the ship's manifest, if it has been carefully drawn. 





Mn.te> UMK 






TALLY SHEET 










THE GLOBE LINE 
GASTON, WaUAMS & WIGMORB STEAMSHIP CORPORATION 

QU4EBAL AGKim 

39 BBOADWAY. NEW TOBS 
Permit Uo^^ ^ KeceiptJIo. .V ^ ^^ 
S. S. ^-^J^^^^-*-'"^*^ Ji Port_^;^.£*-^;«?i;^«2a-*^ ..Dat«_y^#=^ 7^ 191 J'- 




HAMS 


KUHBeRS 


PK06. 


CONTENTS 


DlMto^ONS 


^^ 


Total 


WllOUT 

or SACU 


TOTAL 
WtlOHT 




i4-.A.-»«,<^..*-t«j 












"" 












K.£^. 
























S. 


/<^/sni 


/ 


e,MC£^ZC 










X-5 




'Hn 




v.er. 
























s 


/C /3 /// 


;?- 


% i^iji^£^. 










^'fO 










Y.ec 






P^ 












^ 


. 


<f9t/ 




V 


'73. 


3 


% A,-?. 












/ 


DPI 










^^-.^ 










S^- ^ 


y 












r^^ 










































































































































































































































































































































































































































TOTALS 






















RmiABKS: 
rfn 7. T»ny SUM* 

T«nvT 


-n /. Jo-<^-e^. 


















\;;;f^ik:^ 



Form 7. — ^Tally Sheet 



3. Copies of the tally sheets made when cargo is loaded into 
the vessel are usually kept on board by the chief officer, under 
whose supervision the purser makes up a ship's cargo book which 




97 



98 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

iisLS the vessel's cargo by marks and numbers consigned to each 
port and laden in each hold. 

4. Copies of the dock sheets are sent each day and when load- 
ing, several times daily to the Traffic Department ; here they are 
needed by bill of lading clerks in checking against the bills of 
lading which the shippers are expected to present for signature 
as soon as their cargo has been sent to the dock; and in calcu- 
lating the amount of freight, the rate and the basis on which it 
is determined. 

Ocean Bills of Lading 

The principal document as between shipper and ocean carrier 
is the ocean bill of lading which serves the following purposes : 
(1) It is the final receipt for cargo delivered to the carrier. (2) 
It is the shipping contract under the terms of which the cargo 
is accepted by the carrier for transportation and delivery. (3) 
Certain copies are negotiable and may be used by the shipper in 
obtaining loans or to attach to drafts either for collection, ad- 
vances or negotiation. (4) The consular regulations of various 
foreign countries require certified copies of the bill of lading 
for customs entry at their ports; and (5) in times of war a copy 
may be carried by the vessel to supplement the ship's manifest 
in the identification of cargo. 

The bills of lading are arranged on the carriers' blanks by the 
shipper who is expected to present them ready for signature as 
soon as his cargo has been sent to the dock. The various pack- 
ages shipped are listed as in the dock receipts that were issued 
when they were delivered at the dock, care being taken in the 
entry of contents, numbers, marks and weight. The shipper is 
supposed to return the dock receipts with bills of lading as they 
contain the receiving clerk's notations concerning frail contain- 
ers or packing, signs of tampering, shifting contents or other 
irregularities. These notations are also made on the dock sheets, 
but if the receipts are returned, the bill of lading clerks have an 
additional check. The number of copies of the ocean bill of 
lading issued varies according to the requirements of the shipper 
and carrier and in some instances also according to the con- 
sular requirements of foreign countries. The number of ne- 
gotiable bills is usually three or four and the number of non- 
negotiable copies varies from three to ten. During the war, the 




V^f 



■ Hf, 



97^S'^o^^ 



THE GLOBE LINE 



,0 bt Wr.pori.d by ihe S«.m>bip \. 

BUENOS AIRES 

Gaston, Williams & Wipiore Steamsiiip Coiporation ||^|j|^°' '" '"' °"'" """°"' "'■ '"""" """ 

ONE ID BALE CLOTH 



,™ ...GAS™..WILLi.fAIS .4..W.IGU0RE .INC 

ly to call at any Port or porU in or out of the coslomary re 



NEW York 
39 Broadway 



;=|5| OECLflRflTION (/ mU^ 













SJ60/575 

V.R.C. , , 

So io)}/m 

V,R,C. 
V. 1/5 



TWO (21 C/S EYELETS 
THREE (5) C/S BAG FRAMES^ 

luantlty 



™diVani!rpirocBUEiios'AiiiEs' 

■BUENOS AWfES ARGEWTlNE. S.A, 




GROSS KILOS 



r holder of this bill of 

r lighters to and from the steamer at the riilc of the 



',",;";r 



J York-Antwerp Rules 1 



.tions from liability contained 



^Afe) 



^L# 




■ Ihi. @.\j. .^<r 100 Iht. /... 

..Ibt. 9 vcr-lSiO Ibi.t- 



X«^/«(..to(, 



..7o/., 



r40cfl t 



.M8S-^ 







AND__FINALLY. In acccpiins this Bi 
Shi'ppcrrOwner,' Con^ii'^™' 1 
IN WITNESS WHEREOF, the Mas 



er, Owner and Cnn sign ee of the goods and the Holder of the Bill of Uding, agree to bje 
d Steamship halh affirmed to....? Bills of Uding, all of this lenor and date, OM of 



p„.a ,■„ KEw voR.. 25.....ay o,. ...SEPTEMBHB ™ 8 mo„ ,fc, j WEnKlotaktCap,*. 



DOCUMENTS REQUIRED BY OCEAN CARRIERS 99 

shipper was required to insert the number of the export license 
received from the War Trade Board and also enemy trading 
license numbers ; or in case no licenses were required, the nota- 
tion "N.L.R." The number of the shipper's export declaration 
is likewise shown in the bills of lading. 

As fast as the dock sheets or returns for the cargo listed on 
each bill of lading are received by the Traffic Department, the 
bill of lading clerks check the various items which were entered 
by the shipper. If irregularities are noted on the dock sheets 
or on the dock receipts, in case they were returned, and the 
shipper has not rectified them or instructed the carrier to do so 
at shipper's expense, special clauses may be inserted in the bill 
of lading contract to relieve the steamship line from responsi- 
bility for damaged or improperly packed cargo. The bill of 
lading clerks then calculate the amount of the total freight charge 
and enter it on the line's copy and on one of the shipper's non- 
negotiable copies, together with the rate of freight and the basis 
on which it is determined. To enable them to compute rates 
and charges accurately and in the shortest time, they are pro- 
vided with tables of rates or tariffs and tables of weights and 
measurement. The number of the dock receipt is also inserted, 
the number of the export declaration is checked and inserted by 
the bill of lading clerks and each bill is given a bill of lading 
number. 

In the line copy of the bill of lading reproduced in Form 9, 
the items listed by the shipper and bill of lading clerks may be 
readily distinguished as the former were made on a typewriter 
and the latter with a pencil. It was necessary in this case to 
show weights in kilos as well as pounds, a requirement applicable 
on shipments to most South American countries. 

When the bill of lading clerks have completed their checking 
and freight calculations the freight rate clerk or broker who en- 
gaged the cargo is required to initial the line copy as to the 
correctness of the rate (see Form 9). All the copies are then 
referred to the Cashier of the steamship company, who is re- 
quired to verify the freight calculations, initial them as being 
correct, enter the amounts collectable in his cash book, and hold 
the shipper's copies for delivery to him on payment. The ne- 
gotiable bills are signed by a responsible person, the chief bill 
of lading clerk usually receiving authority to do so from the 



100 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

company's Board of Directors. The non-negotiable copies, in- 
stead of being signed, are initialed. As the requirement regard- 
ing prompt prepayment of freight may cause inconvenience to 
large shippers who make many shipments covered by numerous 
bills of lading, "due bills" are accepted by some lines at the time 
the signed bills of lading are delivered to the shipper, but the 
practice has become less general. It is especially open to abuse 
when the due bill becomes merely an informal promise to pay 
signed by office boys or messengers. 

Ocean bills of lading are sometimes made out directly in the 
name of the foreign consignee, especially when the goods have 
been paid for at time of shipment, when satisfactory security or 
guarantee has been arranged or when they are shipped on open 
account. But the more common practice is to make them out in 
the name of the shipper himself, i.e., they are drawn "to order," 
the merchandise being deliverable to order or to his or their as- 
signs. Such a bill is negotiable because the consignee cannot ob- 
tain the cargo until he presents the order bill of lading with the 
shipper's endorsement or signature on the back of the bill. The 
endorsement may be made either in blank or specifically to a 
named individual or concern. When attached to drafts the bank- 
ers handling the financial transaction require a so-called "full set" 
or all of the negotiable copies that have been issued. An ex- 
amination of Form 9 will show that the number of signed 
or negotiable bills of lading issued by the carrier is specifically 
stated. The negotiable bills of lading properly endorsed by the 
shipper conveys ownership of the cargo. They may be attached 
to drafts or bills of exchange which may be negotiated or sold 
by the shipper for the full or a portion of the amount stated in 
the invoice or for collection at destination, or they may be used 
to obtain a loan. 

Order bills of lading often contain a so-called "notify" clause 
which authorizes the carrier's agent at destination to notify the 
person who will ultimately receive the cargo. His name is in 
such case written in the margin of the bill of lading which is 
drawn to order of the shipper, but the person notified does not 
thereby obtain control of the cargo. When transshipment is 
necessary to reach destination the name of the agent to be noti- 
fied at the transshipment point may similarly be written on the 
bill of lading with a request that the transshipping agents of the 



DOCUMENTS REQUIRED BY OCEAN CARRIERS 101 

carriers shall advise him as to the name and sailing date of the 
connecting carrier. 

The non-negotiable copies of the bill of lading are variously 
used by the shipper for his files and to send to the consignee 
for his information ; by the carrier for its files or to forward to 
its agent at destination and in time of war to provide the vessel 
with a "Captain's Copy," and by foreign consuls to fulfill the 
legal requirement of foreign countries. 

It is essential that bill of lading clerks understand foreign 
consular requirements. Various countries require the certifica- 
tion of stated numbers of the bill of lading by their consul who 
retains a copy; some require the attachment of consular invoices 
or certificates of origin to the bill of lading; some have regula- 
tions concerning the statement of weights or other items, the 
use of consecutive numbers, shipping marks, erasures, interlinea- 
tions or alterations, foreign languages, or the prepayment of 
freight ; and some foreign countries provide that shipments may 
not be consigned "to order." 

No uniform ocean bill of lading has been adopted in ocean 
shipping, the terms of the contract vaiying for different lines 
and especially in different trades. Local conditions at different 
ports frequently cause steamship lines to vary the degree of 
responsibility accepted in the delivery of cargo. In the bill of 
lading reproduced in Form 9, for example, *'it is stipulated that 
at Buenos Aires, merchandise herein described, whether dis- 
charged at docks or into floating equipment, shall be taken by 
consignees from ship's tackle, at the risk and expense of the 
owners of same and all responsibility on the part of vessel for 
shortages, damage and condition of goods shall cease when 
merchandise leaves ship's tackle." This clause is general in the 
trade of Argentina, at certain ports of Brazil and in the West 
Coast countries of South America. Not only does it affect the 
responsibility of the carrier in case of claims, but it places the 
expense of lighterage, pier handling charges or other costs in- 
curred beyond the ship's tackle upon the consignee. In case of 
one West Coast Line the bill of lading calls for delivery ashore, 
but nevertheless provides that the costs beyond ship's tackle are 
payable by the consignee. A similar clause is one requiring the 
consignee to take delivery "free from alongside," bills of lading 
containing such a clause being known as "F.F.A." bills. Bills 



102 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

of lading covering general cargo shipments to Europe on the 
contrary provide for delivery ashore, except at the smaller and 
poorly equipped ports of the Mediterranean. 

Ocean bills of lading vary also as to the minimum freight 
charge to be collected. Many so-called "minimum bills of lading" 
specify a minimum freight variously fixed at one guinea (about 
$5.10) per bill of lading, five dollars, ten dollars, or the current 
charge for one, one and a half or two tons or other quantity of 
freight. Other ocean carriers on the contrary have no fixed 
minimum. There are, likewise, variations regarding the risk of 
transshipment. Bills of lading variously state that cargoes are 

"to be transshipped at to at Steamer's expense, for 

account and risk of shipper" ; or "that the carrier shall not be 
liable for risk of transshipment, nor for any dam- 
age, however caused, which is capable of being covered by in- 
surance;" or "that all goods destined beyond are subject to 

all conditions, stipulations and exceptions expressed in the cus- 
tomary form of bill of lading in use at the time of shipment by 
the carrier or carriers completing the transit. Also that the goods 
be forwarded at steamer's expense, but at shipper's risk either 
by steamer, lighter or railroad." Others provide "that the trans- 
shipment to connecting carriers shall be at the risk of the owners 
of the goods, but at ship's expense, and that all liability of the 
steamer shall terminate on due delivery to the connecting carrier. 
The property shall be subject exclusively to all conditions of 
carriers completing the transit and owners of goods shall have 
to make their claims, if any, against them." The bill of lading 
shown in Form 9 provides that if any cargo "be transshipped to 
a minor port of consignment, it is expressly stipulated that dis- 
charge at the nearest port of call, as per the foregoing condi- 
tions, shall constitute full and complete delivery, expense of 
storage, other expenses and for reshipment to final port of con- 
signment shall be borne by owner of cargo." 

In some instances, prepayment of freight is required, while in 
others it is stated that "freight need not be prepaid" with the 
understanding, however, that this clause does not apply to perish- 
able commodities, or others which might on arrival at destination 
b^ of insufiicient value to cover shipping charges. So, too, the 
maximum value of each package "unless otherwise stated herein, 
on which basis the rate of freight is adjusted," is variously fixed 



DOCUMENTS REQUIRED BY OCEAN CARRIERS 103 

at $100, $250, $20 per cubic foot, $500 per freight ton or other 
fixed amounts. Sufficient has been stated to emphasize the lack 
of uniformity in ocean bills of lading and the need on the part 
of shippers to examine carefully the terms of contracts with 
which they may not be familiar. The general liability terms 
contained in the first paragraphs of ocean bills of lading con- 
tract are more uniform than the detailed, numbered clauses that 
follow, the reader being urged to read carefully the first three 
paragraphs of the contract reproduced in Form 9. An explana- 
tion of "general average" and of the Harter liability act of 
February, 1893, may be found in the manual of this series deal- 
ing with Marine Insurance. 

Through Export Bills of Lading 

Interior exporters instead of billing cargoes to the port of 
export on railroad bills of lading and there rebilling them on 
ocean bills have frequently sent them through on so-called "ex- 
port bills of lading" obtained from the rail carriers. An ex- 
amination of Form 10 will show that the contract contained in 
such a bill of lading is divided into three parts, each covering a 
separate part of the through transportation service rendered. 
The terms contained in the first part cover the inland transporta- 
tion of the cargo from the interior point of shipment to the port 
of export, the liability clauses being similar to those contained in 
the usual bills of lading issued by the inland carriers. The second •;^ 
part covers the ocean transportation service and is similar to 
the terms contained in an ocean bill of lading. The third part, --, 
which covers the shipment from the foreign port of entry to in- 
terior destinations, provides that "the property shall be subject 
exclusively fo all the conditions of the carrier or carriers com- 
pleting the transit." 

Through export bills relieve the shipper from the necessity of 
arranging for the transfer of the cargo at the ports. They do 
not, however, relieve him from the payment of the costs incurred. 
Many shippers prefer to rebill at the port of export both because 
they have made satisfactory transfer arrangements which they 
believe will keep port expenses at a low figure and because they 
prefer to take full advantage of possible, favorable fluctuations 
in ocean freights. Owing to freight congestion and the shortage 



104 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

of ocean tonnage during the war, the use of through bills was 
restricted to shipments for which the requisite ocean tonnage 
was engaged at time of issue. 

On March 14, 1919, the Interstate Commerce Commission pre- 
scribed a uniform export bill of lading. It has not, however, 
gone into effect, for on July 13 the United States District Court 
at New York set aside the Commission's order on the ground that 
Congress had no intention of conferring upon it the right to pre- 
scribe the form of carriers' bills of lading. 



Parcel Receipts 

The minimum freight clause usually contained in ocean bills 
of lading often makes it too expensive to ship single, small par- 
cels in the ocean freight service and often causes the shipment 
of them through freight forwarders or international express com- 
panies who combine many small packages into 40 cubic feet of 
space and pay freight at the current rate per measurement ton. 
Some carriers have, however, seen fit to facilitate the direct 
shipment of small packages in the ocean freight service by issu- 
ing "parcel receipts" which waive the minimum freight clause, 
but variously limit the liability of the steamship line to a stated 
maximum value, and in some instances impose restrictions upon 
the dimensions and weight of parcels and reserve the right of 
the carrier to refuse to issue parcel receipts when there is a sus- 
picion of unfairness. These receipts were originally intended 
solely for samples of export merchandise, but their use has be- 
come somewhat more general. 

From the typical parcel receipt reproduced in Form 11, it will 
be noted that except in so far as the receipt itself imposes special 
conditions it embodies all the "conditions, exceptions and liber- 
ties" contained in the carrier's bill of lading. Though issued at 
lower freight rates, the parcel receipt does not fully obviate the 
difficulty occasioned by minimum bills of lading. The special 
restrictions imposed, especially those regarding value, hamper its 
use for banking purposes, and for the shipping of articles of 
higher value.^ ^ 

'During the war various lines discontinued the issuing of Parcels 
Receipts. 



COPY 




Form io. — Export Rill of Lading 



DOCUMENTS REQUIRED BY OCEAN CARRIERS 105 



Holland- America Linb 

PHILADELPHIA AND ROTTERDA M-AMSTERDAM 

H(H.UU)0-AMEItlC& LINE 

ROTTCHDAM-AriSTCROi 



HOllANO-AlflERICA LINE 

»HiiAoeiPHi*, r«. 
10 



No.. 



PHlI^DEtPHIA, J'illj!_8Q..19;i.3. 19 

RECEIVED, In apparent good order and condition, from 



Smyth and Thompson ... 



for shipment per S. S. "- 



..RXrid* 



" (Voy 



-) 



bound for Rotterdam the undermentioned Goods, to be carried subject to all conditions, escep- 
jions and liberties contained in the East Boand Bill of Lading of the Company for the time being 
in use from the Steamer's port of departure. 



Marks and Numbers. 




■ P.P. Edg^r. 



Conslsnee. 



Description of Hacka^es and Contents. 



One(l) Caee Typewriter Ribbom 



Freight, $1.00 
Cbarees, ..... 



Total, 



$i.00 



Yhe Company will not be liable for any parcel or package exceeding |io.oo in valne, unless ench value 
be declared by the shipper upon delivery to the Company and freight paid thareon as may be required. 

H.Ol^UA,ND'A.M.E>RlO^ LINE). 



Form ii. — Parcel Receipt 



Ship's Manifests 

When a considerable number of bills of lading for a given 
port are ready for delivery to the shipper the freight manifest 
clerks of the Freight Traffic Department begin the work of mani- 
festing. Ship's manifests are required by the Government of the 
United States and those of foreign countries, yet they are so im- 
portant in vessel operation that they may also be included among 
the shipping documents required by the carriers. Ship's mani- 
fests are not only prepared in the foreign trade and the trade 



106 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

between the Atlantic and Pacific Seaboards where they are re- 
quired by law, but frequently also in domestic trades where there 
is no legal compulsion, although they are then at times known as 
way-bills and are not made out in accordance with Govern- 
ment requirements. 

The form and contents of ship's manifests are not uniform. 
The copies prepared for the customs authorities need to contain 
the items required by the U. S. Government, but beyond this 
point they vary according to the foreign consular requirements 
applicable in different trades, and according to the operating 
conditions and practices that prevail. The sample manifest re- 
produced in Form 12 which is used by a line operating from 
New York to Buenos Aires, contains columns for listing the bill 
of lading numbers, names of shippers and consignees, marks and 
numbers of packages, description of contents, measurement in 
feet and inches, weight not only in pounds but also in kilos be- 
cause the latter is required in the Argentine consular regulations, 
export declaration number, remarks concerning condition of 
packing, etc., freight rates, total amount of freight and other 
charges, amounts prepaid and amounts payable at destination. 
It also contains the name of the steamer and captain, the vessel's 
gross and net register tonnage, the number comprising its crew, 
the port of sailing and port of discharge, and the date of sail- 
ing. Ladings are numbered serially for each port and separate 
manifest is made for shipments to each port of discharge. The 
manifests are preferably prepared in the language of the desti- 
nation country as customs regulations in many countries require 
translation at excessive costs. 

Manifesting requires rapidity because it cannot be completed 
until proper data has been received from the Wharf Department 
and until the bills of lading are ready for delivery to the shipper, 
and because the manifest of a large vessel carrying general 
cargo comprises many sheets and needs to be completed before 
or shortly after the vessel obtains its clearance from the customs 
authorities. Manifesting is exacting work, also, because absolute 
accuracy is required. It is sometimes done by hand, but more 
commonly on large, especially designed billing machines, able to 
make a sufficient number of copies at one writing. 

Careless typing is not permissible as consular authorities are 
usually exacting with respect to erasures or corrections. The 




X07 



108 OCEAxN STEAMSHIP TRAFFIC MANAGEMENT 

sources from which the manifest clerks obtain the various cargo 
items listed in the ship's manifests are the bills of lading and 
exporter's declarations. 

The ship's manifest is used for various purposes: (1) Before 
clearing from a port in the United States to a foreign port an at- 
tested copy of the ship's manifest needs to be delivered to the port 
collector who then grants a clearance for the vessel and her 
cargo. He retains an attested copy, which together with the 
shippers' manifests or export declarations, becomes the basis for 
the official export statistical returns of the United States and 
serves as a means for the enforcement of such Government regu- 
lation with respect to vessels or cargoes as may be in effect at 
the time of clearance. 

(2) Upon arrival at foreign destination a copy of the manifest 
needs to be presented, as a requirement incident to entry. Ves- 
sels entering American ports from abroad are similarly required 
to present manifests to the customs authorities upon entry, a 
preliminary copy being delivered to the custom house officers who 
board the vessel upon arrival and final attested copies being 
mailed to the Treasury Department and delivered to the Col- 
lector of the Port immediately after the vessel has docked and 
before discharging of cargo begins. These manifests are, used 
in the collection of import duties, in the enforcement of customs 
regulations, and in the preparation of the statistical returns in 
the import trade. 

(3) The ship's manifest serves as a routing document and as 
a check upon cargo at time of discharge. 

(4) It serves as a basis for the company's freight revenue 
accounts. 

(5) In time of war it is the principal cargo document examined 
when a merchant vessel is detained at sea by a man-of-war with 
a view to identifying its cargo as to kinds of commodities, their 
origin and destination. 

Documents Issued By Carrier When Discharging 

When instead of loading cargo and leaving port an ocean 
carrier enters port, it proceeds to discharge its cargo after hav- 
ing satisfied the customs requirements, but it may not legally 
release the cargo to the consignee until he presents a customs 



DOCUMENTS REQUIRED BY OCEAN CARRIERS 109 

permit for examination of the customs guard at the pier. This 
permit indicates that the consignee has complied with the re- 
quirements of the customs authorities concerning imported mer- 
chandise. 

The Inbound Freight Department of the steamship line in its 
dealings with the consignee sends to him an arrival notice and 
freight bill such as is shown in Form 13, which informs him of 
the arrival of the items listed and instructs him to surrender 
it immediately at the steamship office together with the original 



ARRIVAL NOTICE AND FREIGHT BILL. 



1^ 



THE GLOBE LINE 
itsm. unuusB t f kwu sruasip Cur. 



NEW YORK 



SbtppeJ iy_ 



I 



r. - 

, , , , 1 



o 

3 PIca« lutKnclti unmcdialtly. •! miT Ntw York On.cr. 120 Broadway - Equitable BaildiD( - (not •! the p<«X 

^ original bill of Udmg. properly codoijcd, pay Irtighl and i^afgea mcnOo»cd and oblaiB dchvciy ordir. 

Do not call for SSipment until ootin«d that it t» ready for doliTery. 



Form 13. — Armval Notice anb Freight Bill 



bill of lading properly endorsed, and to pay the freight charges 
shown on the bill. 

Entry is at the same time made in a book of record, to be 
checked against the Cashier's receipts of freight payments. This 
notice of arrival does not enable the consignee to immediately 
obtain his merchandise at the piers. It is followed by a £nal 
notice of arrival such as is reproduced in Form 14, which in- 
forms the consignee that the cargo is ready for delivery and 
unless removed previous to 5 P. M. of a specified date, it will 
be stored at owner's risk and expense without further notice. 
Thereafter storage charges accumulate. 

The consignee, moreover, cannot obtain his cargo until he ob- 
tains the company's delivery order which in case of collect 



110 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

freight shipments is given to him only after payment of freight 
and delivery of the negotiable bill of lading properly endorsed. 



DcUwy will b« nftcl* only ea turraDdar of Delivory Ordw 



^ 













.S. .S 




n // 


<j,if^j V 


From 




r„ 





THE GLOBE LINE 
CUTwi woiJAas t WKMU STUisnr cur. 



ntr 



FINAL NOTICE 

Thii thipiDeot i> ready (or delivery. 
Pleaj« kuiTe goods removed •! one*. 
TO AVOID STORAGE. 



nil at your opboo be ilored ^ owneri ruk aod 



U Dot fetnoved previow to S P. M. 

etpcnte vnlhoul (u/lher oohce. 

fiii/a o/ laduiff and frtigki momty mU not 6« aeeepted at tkt pier, but mutt bt tarrtndmd at atrr A'etv 
York otlct. 120 BROADWAY, in txchaiiat for Dcliccry Ordtr. 



Form 14. — Final Notice of Arrival 

If, however, the freight has been prepaid the delivery order is 
sent to the consignee "at the same time as the arrival notices, 
or shortly after, subject to presentation of the original endorsed 



DtlHirM Clak 

Plujc JcUomr It 



-B/L. 



Nat Ymlu 



^ 



THE GLOBE LINE 

Cism WBXun t wkmu snuEasr cm. 









MARK* AND ARTICUIS 


W..^T 








DELIVERY ORDER 

Delivery wiD bo oudo only OD aarrondv 
of thit Order. 



AO earfo when leoded on Oi* Pi«f THE GLOBE LINE 

will be »l owner, riak. oa.tch. will.m. a w.o.oki aT..«.H„ co.p 



Form 15. — Delivery Order 



DOCUMENTS REQUIRED BY OCEAN CARRIERS 111 

bill of lading."^ It gives authority to the delivery clerk at the 
company's pier to release cargo to the consignee. A copy is 
reproduced^ TbTm'15. When the cargo- is finaUy -delivered the 
receiver is required to sign a delivery receipt such as is repro- 
duced in Form 16. 

In caje the consignee is unable to present the original bill of 
lading with proper endorsement because he has not received it 
from the shipper, he may furnish a bond such as is reproduced in 
Form 17. The consignee issuing the bond avers that he is "en- 



o 

o 

o 
o 




DELIVERY 


RECEIPT 






[ialr 






^ 








THE GLOBE LINE 

GASTSU fflUAJE i WlCKOSJ STEAMSHTP COJP. 


<i c Rll. . 


Shipptd hg^ 

F,„m 


1 


T 


« 






MARKS AND ARTICLCB 


..,.«. 


1 








RtluixJ_ 

DtUotrbig 
Lira Rtftt 


] 


tnu 1 




neCEIVED IN GOOD ORDER | 


oaVc 


«..vr.."N. 


OCU.CtD .0 


„0 «C.U>M. U. ...T.KG. A«D «.,.HT. ' 


r.ouu. 


.,<,H.iu..or.E«.»t» 


















■ 









Form i6. — Delivery Receipt 



titled to the immediate possession of said goods but has not yet 
received the bill of lading covering the same, and that he is en- 
titled to said bill of lading, and that the said bill of lading has 
not been negotiated, sold or transferred." He pledges himself 
to protect the carrier against any consequences which may be 
caused by the delivery of the cargo to him. The difficulty, ex- 
pense and delay incident to the arrangement of such a bond em- 
phasizes the importance of promptly sending a properly endorsed 
bill of lading to the consignee. 

If upon arrival the captain of the vessel fears that cargo may 
have suffered damage for which his owners should not be held 
responsible or that the vessel and its fittings have been damaged, 

*J. A. Slechta, Paper on "Practical Steamship Operation." 



112 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

he may protect them by making "protest," that is, filing a note 
of p-rotcst before a notary pubHc such as is reproduced in Form 
18. Later, should actual damage be discovered, he follows this 
note of protest with an extension of protest. The former is a 
general protest against claims for damage due to the perils of 
the sea encountered, while the latter recites more specifically 



1^ 



BOND GIVEN FOR PRODI CTION OF BILL OF LADING TO 
THE OLOBE LINE 



Bf. 



WHEREAS 


. PACKAGES OF COODS. 




»..., 


,^H..« 


GOODS AND MH»ut OF r«cijices 


-.,.H. 0. H»S.««M 



























































Shipped by— . — » 






' 














^avr 




«l\_l. 


s s 


Voyjjt 


B/L_ 




. . IrAcn 



%ntt (s), »j\A entiOrd to the immcdiite poatnsion of ujd g'Mcb but 

and that ,l'„ J, eotiOed <o titd bit) ol Uding And th>At sxti b«ll of Ud>r\c h«> not been 

requested The Clobe Line. Cuton. Wilbamt & Wigrsoie Stevnihip Corporation. Cen'l Agenu. to loin » 



and the undersized claim that 
C^. not ai yel reeoved the bill ol lading eovenne the 
ntfotiaKd kold or oanvlerrei 
• copy ol thtir bJI ot ttding 

Now, 7here(ott. in eoniideribon ol such delivery, the underiigned pledg* (0 .i**.'"^ i 
Lint. Caiton WilKami A Wijmore Stcaniihip Corporation. CenT Agent* i£4>ntt a.nv and all 

It I* alto u-idtritood that the undersigned agree (»> to communKau w 
fAOdi mentjor.ed whKh document properly endorsed lor the delivery sball be 



ivon and aisigni to prot«ci iiu> uid Clobt 

in^e* which rruy be caused by such delivery 

', shipper! without delay to piocurt a Dill of Lading (or the 

ndcrcd loThe Globe Line. Caiion. W.U.am* & W.grooie Siean>- 

ftbip Corporation CenT Agents, as soon as practKal 

Thn guarantee to b« retained by The Globe Lme, Canon. Williams & Wigntorc Sicatnship Corpor 
arvdcf any i 



. Ccn'l Agcnu and ao( to be rcnuvtd 



Kci. Vofk,. 



-191 



Cfcarge 

Total 



Siioaturc «l ocmber ol the Untf— 
or tutboriud officer ol Corporalion 



Form 17. — Bond for Production of Bill of Lading 



the damage against which the captain protests responsibility. 
An extension of protest is reproduced in Form 19. These marine 
protests constitute an important part of the evidence required b/ 
insurance companies before losses are settled. 



DOCUMENTS REQUIRED BY OCEAN CARRIERS 113 



UNITED STATES OF AMERICA 

State of New York, 
County of 
City of New York, 

Be it Known, That on this day of A.D., before 

me a Notary Public, in and for the State of New 

York, County of and dwelling in the City of New York, 

duly commissioned and sworn, personally came and appeared 

Master of the called the 

of of the burden of tons or thereabouts, which 

sailed from on the day of 191 . . 

with a Cargo 

bound for and arrived at on 

the day of last, and fearing damage owing to 

(Here follows statement of causes which it may be 
anticipated will cause damage to cargo or vessel) 

during voyage, he hereby notes his protest before me, the said Notary, 
against all losses, damages, etc., reserving right to extend the same at 
time and place convenient. 

Master of Verified before me, the day and 

year first above written 

Notary Public 
for the State of New York 



Form i8. — Marine Note of Protest 






114 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 
UNITED STATES OF AMERICA 



STATE OF NEW YORK. 
CITY OF NEW YORK. 



BY THIS PUBLIC INSTRUMENT OF DECLARATION AND PROTEST, be it made known 

and manifest to all whom It may concern, that on the day of 

In the year of our Lord one thouiiand nine hundred and before 

personally appeared Master of the '.'.'.!'.'.'.!!!!! 



of tons, and noted with 

In due form of law, his Protest for the uses and purposes hereinafter mentioned And now. on this 

day. to wit. the day of the date hereof, before me a Notary 

Public In and for the County of In the State of New York. 

duly commissioned and sworn, comes the said Master, and requires me to extend his said Protest, and 
together with him come and appear 

all belonging to the aforesaid vessel, all of whom being by me severally duly and solemnly sworn on 
the Holy Evangelists of Almighty God, voluntarily and freely depose and say that the said vessel, 
laden with 



being in every respect seaworthy, and in all things flitted and provided for her intended voyage, sailed 
on the day of 19. . . from 

(Hero follows statement In complete detail of damages or losses which have been encountered and 
concerning which the master denies vessel's responsibility for reasons as stated hereafter, or for reasons 
further particularized ) 

AND the said deponents on their oaths declare, that the said ves.sci was at the commencement 
of the voyage aforesaid, staunch and strong, and had her cargo well and sufficiently stowed and her 
hatches properly closed and secured; and that during the said voyage they together with the rest 
of the crew on board, used their utmost endeavors to preserve the said ve.s.s(!l and her cargo, tackle 
and apparel from damage or Injury. AND that any loss, damage or Inlury which lias ari.scn or accrued. 
or that may arise or be sustained. In any way or manner whatever Is solely owing to the accidents 
and difficulties herein set forth and declared, and not to any negligence, want of skill, vigilance or 
exertion on the part of the deponents, or any of the officers or men of the said vessel. 

(Signed) Masteb 



WHEREFORE, the said Master and Commander as afor&sald. hath requested me to PROTEST, 
and I. the said Notary, at such, his request have PKOTESTEU and by these presents DO 
PUBLICLY AND SOLEMNLY PROTEST against all and every person and persons whom It doth, 
shall or may concern and against all and singular the accidents casualties and clrcunistances already 
set forth in the foregoing declaration, on oath, for all manner of losses, costs, d.images. charges 
expen.ses and injuries what.soever. which the said vessel and her cargo on board, and the freight by 
her earned, or to be earned, or either of them, or any part thereof, have already sustained, or may 
hereafter sustain, by reason or means ot the foregoing premises. 

THUS DONE AND PROTESTED in the City Of New York, thia 

day of in the year of 

our Lord one thousand nine hundred and 

IN TESTIMONY WHEREOF, I have heretmto set my hand and 
affixed my -notarial seal. 

(Signed) 

Notary Public County No. 

CITY AND COUNTY » „„ 
OF NEW YORK f ^- 

a Public Notary In and for the State of 

New York. County of duly commissioned and sworn, do certify the fore- 
going to be a true and exact copy of an original Protest made before me. 

IN TESTIMONY. WHEREOF, I have hereunto set my band 

and notarial seal this day of 

one'thousand nine hundred and 

Notary Public County No. 

Form 19. — Master's Extension of Protest 



CHAPTER VIII 

SHIPPING DOCUMENTS REQUIRED BY THE UNITED STATES 

GOVERNMENT 

In addition to the cargo and vessel documents required by 
the carriers in their dealings with shippers, consignees and char- 
terers and in the conduct of their transportation business, many 
official documents are required by the United States Government. 
They may, to facilitate description, be divided into (1) general 
ship's papers, (2) vessel clearance documents, (3) vessel entry 
documents, (4) documents required of exporters, and (5) docu- 
ments required of importers. 

General Ship's Papers 

Each vessel engaged in the overseas trade is required to carry 

an official ship's register or measurement certificate vi^hich is 
obtained from the registry authorities of the country in which 
it is documented. American vessels obtain their certificates of 
registry from the Commissioner of Navigation, Department of 
Commerce, under whose supervision the measurement rules of 
the United States are applied by the admeasurers of the Cus- 
toms Service. The certificate indicates the name, official num- 
ber, and ownership of the vessel, the name of the master, when 
and where it was built, the home port, the vessel's principal 
dimensions, and other identification data, the capacity of the 
spaces indicated in its gross tonnage, the space exempted from 
measurement, the spaces deducted from gross tonnage and the 
vessel's net register tonnage. A copy is reproduced in Form 20. 
Preliminary to the issue of a certificate of registry the Govern- 
ment requires a builder's certificate, a surveyor's or admeasurer's 
certificate, an owner's oath, a master's oath, and in case of a 
vessel sold or transferred to a citizen of the United States an 
official hill of sale, all of which are executed on forms prescribed 
by the Commissioner of Navigation. 

115 



116 



OCEAN STEAMSHIP TRAFFIC MANAGEMENT 




Form 20. — Certificate of Registry 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 117 



CERTIFICATE OF INSPECTION 

FOR STEAM OR MOTOR VESSEL 



THIS CCRTiriCATC CXPIRCS. 



^t^i 



United States of America 

Department of Commerce 



STEAMBOAT-INSPECTION SERVlce 



State cf^ 



Digtrictof^ 



APPtKUTlOf* in writing having been made to the undersigned. Inspectors for this District, to inspect the above-named vessel 
ptopelled by - . .j ol , . ' , in the State of. 

' W hprecii , , ,. . , . _ , , , ,, ,, , ,, .,..,^,.„ ,-. .., , ..^ ^ 



«, day of , 

in the State of 



_._„ , fs Master, said inspectors, having completed the inspection of the vessel on the 

-^., 191 , DO CERTIFY that the said vessel was built at .^ » 

_»in theyeaf 1 ; rebuilt in the year i ; that the Hull is constructed of ; 

. > . . -■ ■,. .— .— gross tons; that the said vessel has , . , .. . Staterooms and _ _. Berths, and is 

_ First-cabin, ^ w. Second-cabin, and Deck or Steerage Passengers. 



and, as shown by cfiiciaj records, is of _ 

allowed to carry ^ passenger; 

Of the deck crew (which includes boatswains, quartermasters, apprentices, seamen or deck hands), hereinafter specified and designated, 
40 per cent thereof, excluding apprentices, must be certificated able seamen. After November 4, 1916, 45 per cent thereof must bejcerti/icated 
able sfiamen. tnctuded in the entire aew bereinaftci specified and designated there roust be -r cettific^ited lifeboat men. 



also Is requlied to any a full complement ol officers and crew, consisting rS - liansed »***^ licensed Master ind Pilot, -^ -■ 

Ticensed Pilot , .«,^-,.. licensed Mate t--^'^^ Quartermaster , ^. Able Seamen, . , .... Seamen, .^. Appf entices, _«_ Dedt 

Hand , ««^ certificated Lifeboat Men, „ «. licensed Chief En^neer, _.. licensed Assistant Engineer , r^,, , licensed Junioi 

Engineer » Water Tender ». ™„Oilef , Firemen, , Coal Passer , Wiper , , . . ., Watrhmpn, and ak^ 

''^ r'T'^ ''*^*T»rsmi5-CThp[TTtfPrtMlTi-StPt<rn[r^^nr»TirtTFrriP i^ nut ror m frtpd -with -the- rraytgatieft-*^ the-v*flftgi ;-4hftt the ^aid \i(L<Af\ is pro- - 

vkted with .,„ .^ Condensing Engine of ,,.. , .,... inches diameter of cylinder and ^ feet stroke of piston, and 

_.. Boiler , ....^.^..^.. ^n- feet irV tength and , Inches in diarneter, madrf of lawful ,.,,,. , in the year ' ,t.»- , 

reljuilt In the yeai 1,. - , -, The said vessel is permitted to navigate, for one year^ the waters of the , ^, . ,.- . , ,. . ' ^ 

,.__- , between .«„, 



» and touching at intermediate ports, a distance of about . 



. miles and retunu 



WlB PURTHBR CBWTIFV that the Said vessel at the date hereof b, in aJI things, in conformity with the laws govemng tfeC SteamtKttW 
iospect'on Service arid Uie Rules and ReguUtions of the Board of Supervising Inspectors. 

THK rOt-bOWINO PAR'flOUI.ARS Or INaPCOTION JU*e KNUM 



*" k*r>I 






ftt»« t> knl bxKcln'aQhiii 




B^ikd iOM 


-. 


l„rtt..il...l 


t 






^ 


f>_i_^«, a^ 






Skua ta poHR. 4Nt^«a«, lta._ 





DONKEv soaaRai 











.,^. 














..-_*»,». 


..w 


•"-^ 


T 1>At, 


Bri-mnr ,(ti»» 


mU u 


tatn 





Stall e/ 



:i» 



mm» iupteUm qi BdUrt, 



„to before me this _ 



.day flf„ 



., Inspector of Boilers. 



Off iCft erf ^ Ji. %£icja SnfipecUrtjSq 
itatria of (fort) ,. 



-,101 



Wa HBREBT* aRTlFt that the above certificate is a true copy of tb« original Issued by this oflSce to the vessel najned herein. 



t rorbtddeo to carry merchaikEse of puaenen for pty, unless upon change cf character by th* Iwpcrtors of the Stttunboat-lnspectJoo Service. 



Form 21. — Certificate of Inspection 



118 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Vessels are also required to carry an inspection certificate 
issued by the United States Steamboat Inspection Service, De- 
partment of Commerce. The certificate for American steam or 
motor vessels reproduced in Form 21 is issued after careful in- 
spection of hull, boilers and equipment and in addition indicates 
the required complement of officers and crew and the maximum 
number of passengers which the vessel may carry. It is signed 
by an inspector of hulls and an inspector of boilers and it ex- 
pires at the end of one year. The forms of inspection certificate 
for American steamers and motor boats, for sailing vessels and 
barges carrying passengers for hire, for sea-going barges of 
100 tons gross register or over, and for foreign steamers carry- 
ing passengers differ in various respects. 

Documents Required on Clearing a Vessel in the Foreign 

Trade 

In the overseas trade the crew of an American vessel engaged 
at an American port is signed up before a United States Shipping 

Form 22a. — SnippiNo Aiiticles 

^..••i>>.«DKa.M Mf^vi,Mi r-t^ DEPARTMENT'OF COMMEHCE 

FORM 705a shipping articles doreau of navigation 

SHIPPING SERVICE 

Notice l8 hereby given that Section 4519 of the U, S. Revised Ptatutea makes It obligatory on the 
part of the master of a merchant vessel of the United States, at the commencement of every voyage 
or engagement, to cause a legible copy of the agreement (omitting signature) to be placed or posted 
up In such part of the {vessel aa to be accessible to the crew, under a penalty not ezceeUiDg 
Onb Hundred Dollars 

EUGENE T. CHAMBERLAIN. 

Commissiomr of Navigation. 

ADVANCE WAGES AND ALLOTMENTS. 

SEC. 10 (a) That It shall bo, and l.s hereby, made unlawful In any case to pay any seaman wages 
In advar:ceof the time when h<' has actually pstrned the same, or to pay such advance wages, or to make 
any order, or note, or other evidence of Indebtedness therefor to any other person, or to pay any person, 
for the shipment of feamen when payment is de<iucted or to be deducted from a seaman's wages. 
Any person violating any of the fure^;<)liig provisions of this section shall be deemed guilty of a mis- 
demeanor, and upon conviction shall be piiiiislicil by a line of not less than $25 nor loore than JlOO, 
and niay also be Imprisoned for a p(?rlo<l tA nut e.\iec(llng six months, at the discretion of the court. 
The payment of such advance wages or ullotnienl shall In no c.xse except us herein provided absolve 
the vessel or the nuuster or the owner thereof from the full payment of wages after the same shall 
have been actuaKy earned, and sliall be no defense to a libel suit or action for the recovery of such 
wages. If any pcr.son shall demand or receive, either directly or Indirectly, from any seatnan or other 
person seeking cniploynMiit. aa seamen, or from any person on his behalf, any remuneration whatever 
for providing hliu with employuicnt. he shall tor every such oflensc be deemed guilty of a mis- 
demeanor and shall be Imprisoned not more than sin months or fined not more than $.')00. 

(bj That It shall be lawful for any .seaman to stipulate lu hLs shipping agreement for an allotment 
of any portion of the w.-\g(s he may earn to liLs gr.indparents. parents, wile, sister, or chiliren. 

(c) That no allotment shall be valid unless In writing and signed by and approved by the slii;;ping 
comral.ssloner. It shall be the duty of the said coniml.s.sloner to examine such allotments and the 
parties to them and enforce compliance with the law All sllpul.itlons for the allotment of any part 
of the wages of a seaman during his absence which are made at the commencement of the voyage 
shall be Inserted In the agreement and shall state the amounts and times of the payments to be made 
and the persons to wl.um the payments arejlo be m.ide 

(d) That no allotnunt except as provided for in this section shall be lawful. Any person who 
shall falsely claim to be such relation, a-s above described, of a seaman under this .section shallWor 
every such offense be punlshe<l by a One not exceeding $J00 or Imprisonment not exceeding six montns, 
at the dLscretlon of the court. 

(e) That this section shall apply as well to foreign vessels while In waters of the United states, 
as to vessels of the United States, and any master, owner, consignee, or agent of any foreign vessel 
who has violated Its provisions shall be liable to the same penalty that the master, owner, or agent 
of a vessel of the Unliwl .States would be for similar violation. 

The master, owner, consignee, or agent of any vcR.sel of the United St.ites, or of any foreign vessel 
seeking clearance from a port of the United Stales shall present his shipping articles at the oITlce 
of clearance, and no clearance shall be granted any such ves.scl unless the provisions of this section 
have been complied with.— .-U< of June t6. is:i/,. as nnnndtd by the Acts of June 19. 1886; December SI, 
1898; Apriise, 1904; June S8, 1900, sec. 4. ana March 4, 1016- 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 119 

FOEM 22A. — SHippiNa ABTICLES (Continued) 
VESSELS OF UNITED STATES MUST HAVE SLOP-CHESTS, ETC. 

SEC. 11. That every vessel mentioned In section forty-five hundred and sljcty-nlne of the Revised 
Statutes shall also be provided with a slop-chest, which shall contain a complement of clothing for 
the intended voyage for each seaman employed. Including boots or shoes, hats or caps, under clothing 
and outer clothing, oiled clothing, and everything necessary for the wear of a seaman; also a full 
supply of tobacco and blanliets. Any of the contents of the slop-chest shall be sold, from time to time 
to any or every seaman applying therefor, for his own use. at a profit not exceeding ten per centum 
of the reasonable wholesale value of the same at the port at which the voyage commenced. And If 
any such vessel is not provided, before sailing, as herein required, the owner shall be liable to a penalty 
of not more than five hundred dollars. The provisions of tills section shall not apply to vessels plying 
between the United States and the Dominion of Canada, Newfoundland, the Bermuda Islancfe, the 
Bahama Islands, the West Indies, Mexico, and Central America. — Act June S6, 18S.',. 

Every vessel bound on any foreign voyage exceeding in length fourteen days shall also be provided 
with at least one suit of woolen clothing for each seaman, and every vessel In the foreign or domestic 
trade shall provide a safe and warm room for the use of seamen In cold weather. Failure to make 
such provision shall subject the owner or master to a penalty of not less than one hundred dollars. — 
Sec. ^/JJS. R.S., as amended by the Act of December SI. 1898. 

Vessels engaged In the whaling or fishing business are not covered by the above provisions of law, 
or by the regulations below regarding scale of provisions. 

CORPORAL PUNISHMENT PROHIBITED. 

Flogging and all other forms of corporal punishment are hereby prohibited on board of any vessel, 
and no form of corporal punishment on board of any vessel shall be deemed justifiable, and any master 
or other ofBcer thereof who shall violate the aforesaid provisions of this section, or either thereof, shall 
be deemed guilty of a misdemeanor, punishable by Imprisonment for not less than three months 
nor more than two years. Whenever any ofBcer other than tha (master of such vessel shall violate 
any provision of this section, it shall be the duty of such master to surrender such officer to the proper 
authorities as soon as practicable, provided he has actual knowledge of the misdemeanor, or com- 
plaint thereof is made within three days after reaching port. Any failure on the part of such master 
to use due diligence to comply herewith, which failure shall result In the escapejof such oflacer, shall 
render the master of vessel or the owner of the vessel liable In damages for such flogging or corporal 
punishment to the person Illegally punished by such officer. 



ARTICLES OF AGREEMENT BETWEEN MASTER AND SEAMEN IN THE MERCHANT 

SERVICE OF THE UNITED STATES. 

ReQtiired by Act of Congress, Title LIU, Revised Statutes of tbe United States. 



Office of the U. S. Shipping Commissioner for the Port of Philadelphia. Pa.. June 5. 1916. 

IT IS AGREED between the Master and seamen, or mariners, of the steamship Saracen of which 
Capt. John Brown is at present Master, or whoever shall go for il: .L:nrr, now bound from the Port of (i) 
Philadelphia. Fa., to Liverpool, England, and sttch other ports and places in any part of the world as 
the Master may direct, and back to a final port of discharge in the United Statei, for a term of time not 
exceeding eight (.8) talendar moruhs.W 

GOING ON SHORE IN FOREIGN 'PORTS IS PROHIBITED 

EXCEPT BT PERMISSION OF THE MASTER 

No dangerous weapons (») or grog allowed, and none to be brought on board by the crew. 



SCALE OF PROVISIONS to be allowed and served out to the Crew during the voyage In addition 
to the daily Issue of lime and lemon juice and sugar, or other antiscorbutics in any case required by law. 



Sun- 
day. 



Mon- 
day 



Tues- 
day. 



Wednes- 
day. 



Thurs- 
day. 



Fri- 
day. 



Satur- 
day. 



Water 

Biscuit 

Beef, salt 

Pork, salt 

Flour 

Canned meat 

Fresh bread 

Fish, dry, preserved, or fresh 

Potatoes or yams 

Canned tomatoes 

Pease 

Beans 

Rice 

Coffee (green berry) 

Tea 

Sugar 

Molasses 

Dried fruit 

Pickles 

Vinegar 

Com meal 

Onions 

Lard 

Butter 

Mustard, pepper, and salt 
sufficient for seasoning. 



quarts 

pound 

pounds 

pound 

pound 

pound 

pounds 

pound 

pound 

pound 

pint 

pint 

pint 

ounce 

ounce 

ounces 

pint 

ounces 

pint 

pint 

ounces 

ounces 

ounce 

ounce 



1 

IH 



IH 

i"' 



'i'A' 
i" 



1 

i« 



6 

H 
IM 



1 " 



IH 

1 

1 

H 



5 
Hi 



l>i 



Butter and lard allowances are misstated above. Figures should 
read; Two ounces of butter and one ounce of lard for each day. 



120 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



FORM 22A SmPPINO ARTICLES (ConflnMcd) 
SUBSTITUTES. 

One pound of flour dally mar ^e substituted for the dally ration of biscuit or fresli bread: two ounces 
of dpslcratod vesctablcs for one pound of potatoes or yams; six ounces of hominy, oatmeal, or cracked 
wheal, or two ounoos of laploea, for sU ounces of rice; six ounces of canned vegetables for one-half 
pound of canned toinaioes; (me-elKhth of an ounce of tea for three-fourths of an ounce of coffee; 
three-fourths of an ounce of coiTee for one-elchth of an ounce of tea; six ounces of canned fruit for 
three ounces of dried fruit; one-half ounce of lime Juice for the dally ration of vinegar; four ounces 
of oatmeal or cracked wheat for one-half pint of corn meal; two ounces of pickled onions for four 
ounces ofKresh onions. 

When tlie vessel Is In port and It Is possible to obtain the same, one-and-one-half pounds of fresh 
meat shall be Bubstltute<l for the dally rations of salt and canned moat; one-half pound of (treen 
cabbage for one ration of canned tomatoea;*one-half pound of fresh fruit for one ration of dried fruit. 
Fresh fruit and vegetables sliall be served while In port If obt,alral)Io. The seamen sh.all have the 
option of accepting the fare the master may provide, but the right at any lime to demand the foregoing 
scale of provisions. 

TheSforegoIng scale of provisions shall be Inserted In every article of agreement, and shall not be 
reduced by any contract, except as above, and a copy of the same shall be posted In a conspicuous 
place In the galley and In the forecastle of each vessel. 

And tha said crew agree to conduct themselves In an orderly, faithful, honest, and sober manner, 
and to be at all times diligent In their respective duties, and to be obedient to the lawful commands 
of the said Master, or of any person who shall lawfully succeed him, and of their superior ofHcera, 
In everything relating to the vessel, and the stores and cargo thereof, whether on board, in boats, 
or on shore; and In consideration .of which service to bo duly performed thclsald Master hereby 
agrees to pay to the said crew, as wages, the sums against their names respectively expressed, and 
to supply them v/Uh provisions according to the foregoing scale. And It Is hereby agreed, that any 
embezzlement or wlUIul or negligent destruction of any part of the vessel's cargo or stores shall be 
made good to the owner out of the wages of the person guilty of the same. And If any person enters 
himself as qualiflcd for a duty which he proves himself Incompetent to perform, his wages shall be 
reduced In proportion to his Incompetency. And It Is al.so agreed that If any member of the crew 
considers himself to be aggrieved by any breach of the agreement or otherwise, he shall represent 
the same to the Master or oDlcer In charge of the ship In a QuIct and orderly manner, who shall there- 
upon take such stepslaa the case may rcQulre. 



It is also agreed that (*) the crew shall load and discharge cargoes, tccp their respective Quarters clean, and 
Kort on the day of discharge until 6 o'clock v. M..- that any dlapxitc relative to wages, provisions and tinea 
between the Master or any officer of the vessel, and any member of the crew shall be submilled to a U. S. 
Shipping Commissioner or Corisul, and that any decision rendered by him shall be binding upon both 
parties and shall, in any legal proceeding which may be taken in the matter before any court of justice, 
be deemed concluilte of the rights of the parties as to such a^estion or subject^ of dispute, 

A. R. smuh, u.:s. src. 



The authority of the Owner or Agent for the 
allotments mentioned wlthln^lsjlnimylpos- 
Bcsslon. 

A t> c-„.i,i, f Shipping Commissioner or 
A. R. Smith[ Consular Officer. 

This Is to be signed If such an authority has 
been produced, and to be scored across In Ink If 
tt has not. 



Iff \WITNESS WHEREOF the said parties 
have subscribed their names on the other side or 
sides hereof on the days against.'thcir respective 
signatures mentioned. 

Signed by John Brown,' Master, on the 6th 
day of June,ll916. 



DATE OF 

COMMENCEMENT 
OF VOYAGE. 


PORT AT 

WHICH VOYAGE 

COMMENCED. 


THESE COLUMNS TO BE FILLED UP AT 
THE END OF THE VOYAGE. 


Date of 

Termination 

OF Voyage 


Port at which 

Voyage 

Terminated. 


DATE OF Delivery 
OF Lists to Snie- 

PING COMMLSSIONER 













I hereby declare to the truth of the entries In this Agreement and account of crew. etc. 



1. Here the voyage Is to be described, and the places named at which the ship la to touch; or. If 
that can not be done, the general nature and probable length of the voyage la toibe stated.Jand the 
port or county at which uhe voyage is to terminate. 

2. If these words are not necessary they must be stricken out. j .i. ,,,.,, „„ 

3. Sec. 4()0S. R. S., prohibits the wearlng.of sheath-knlves.on shipboard, and the Master Informs 

l.^^'^'nere any other stipulations may be hiserted to which the parties agree, and which are not 

jJb!"— Forms must not be unstitched. No leaves may be taken out of It, and none added or sub- 
stituted. Care should be taken at the time of engagement that a sufflciently large form Is used. 
If more men are engaged during the voyage than the number for whom signatures are provided In 
this form, an additional form should be obtained and used. „ , ^ ^ „ ot.j.r.«i.,„ 

Any Erasure. Interlineation, or Alteration in this Agreement will be void, unless attested by a Shipping 
Commtisioner, ConsiO-Generai, Consul, or Consular Agent, to be made with the consent of the persons 
interested. 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 121 

Commissioner, or at ports where such official is not stationed, 
before the collector or deputy collector of customs; and at 
foreign ports before a consular officer or commercial agent if 



uonxrxna or siaman 



^ 



t.i'./vrf'i^. g^ 



BIRrHTLACE. 



• / r ? .^ 4UA\^ 



Mn. 



•&ai 






l^..^i. 22B. — (Back of Form 22A) 

such officer is located at the port of shipment. The document 
signed is known as the Shipping Articles and is the official agree- 
ment between master and crew, as to wages, scale of provisions, 



ORe>^ UIST 



0^ Sirilrb &tatfa of Amnlfa 

Department of commcrcs 



Pmoia cempoiiiig Hit Crem of tH American^ 



coM the. 




Form 23A. — Crew List 



period of service and conditions of labor, and also embodies the 
sections of the United States navigation laws with reference to 
advanced wages and allotments, medicine and slop-chest and 
corporal punishment (see Forms 22a and 22b). 



122 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

I, , Master of the said American , 

do solemnly, sincerely, and truly swear that the within List contains 
the names of all the Crew of the said vessel, together with the places 
of their birth and residence, as far as I can ascertain the same. 

Master 

Port of 

Subscribed and sworn to this day of , 191.., before me. 

Deputy Collector. 
Form 23B, Reverse, — Oath of Master Certifying Crew List 

Before clearance the master of an American vessel is similarly 
required to produce two copies of its crew list, containing the 
name and description of every member of the crew, the capacity 
in which he is employed, his birthplace, citizenship, and the resi- 
dence or address of his next of kin. One copy is certified and 
used on return of the vessel to the United States in accounting 
for its crew to the Collector at the port of entrance. Both the 
ship's articles and the crew list carried on board the vessel must 
upon request be produced before any consul or commercial agent 
of the United States (see Form 23a). 

Under the Seamen's Act of 1915 the vessel's master before 
clearing makes oath to the effect that the vessel "has a crew of 

persons, of which not less than 75 per cent, thereof, in each 

department, are able to understand any order given by the officers 
of the vessel, that all of the said crew were duly shipped at this 

port before a United States Shipping Commissioner on , 

191 — , and not less than 40 per cent, of the deck crew, viz., mem- 
bers thereof, of the vessel are able seamen, duly qualified as 
such, as required by Section 13, the Seamen's Act of March 4, 
1915, and that none of the members of the crew so shipped at 
this port has been paid any advanced wages or been permitted 
to assign any part of his wages due or to become due and — that 
the provisions of the said Seamen's Act, so far as they relate to 
the said vessel, have been fully complied with." The prescribed 
form of this oath is shown in Form 24. The master or agent is 
similarly required to certify on the prescribed form shown in 
Form 25 as to the vessel's equipment with proper radio appli- 
ances and operators as required by the acts of June 24, 1910, and 
July 23, 1912. 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 123 



Custom House, N. Y. 
Multi Form No. AMERICAN. 

B-2. 



United States Custom Service 
COLLECTION DISTRICT NO. 10, PORT OF NEW YORK 



.John Brown , being duly sworn, says; 



That he is master of the S. S Saracen clearing from 

this port this day; that the said vessel has a crew of ..75.. persons, of 
which not less than 75% thereof, in each department, are able to under- 
stand any order given by the officers of the vessel; that all of the said 
crew were duly shipped at this port before the U. S. Shipping Com- 
missioner on ..July 22 , 1919; and that not less than 40% of the 

deck crew, viz., members thereof, of the vessel are able seamen, duly 
qualified as such, as required by section 13 of the Seamen's Act of 
March 4, 1915, and that none of the members of the crew so shipped 
at this port has been paid any advance wages or been permitted to 
assign any part of his wages due or to become due; and, 

I further swear that to the best of my knowledge and belief the 
provisions of the said Seamen's Act, so far as they relate to the said 
vessel, have been fully complied with. 



Sworn to before me this..-?^.. Master. 

day of July IPlp. . 

Form 24. — Master's Oath Under Seamen's Act 



If it is desired to load ballast, cargo or fuel after sunset a 
permit must be obtained from the customs authorities. This 
was until recently granted in a special permit form, but ha? been 
consolidated with other forms into the "general permit to lade or 
unlade" which is reproduced in the section containing vessel 
entry documents (Form 39). Before a cargo steamer clears, 
the master is required to make oath that his vessel will not carry 
on the present voyage any passengers or persons not regularly 
entered upon its shipping articles as a member of the crew (see 
Form 26). 



124 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



SV>rm753B 

MASTeR'$ CERTIFiCATt Of RADIO APPARATUS 



NonCE.— "Tb« radio ^ulpment must be In charpe of two or more persons skilled In the nse of snrt) 
apparatus, one or ibeotber of whom shall be on duty at all times nnile the vessel Is being naTigated. 
Such equipment, operators, the Tieeiilatlon of their watches, and the transmission and receipt of mes- 
ages, except as may be regulated by law or International aRrecmont, shall bo under the control of tho 
master, lathe case of a vessel of the United States; and every willtul failure on the part of tho master 
to enforce at sea the provisions of this paragraph as to equipment, operators, and •watcbos shall subject 
oJm to a penalty «f one hundred dollars. "— iicfc/ywyje;*, ;s;2. " 



CLEARANCE 



DEPARTMENT OF COMMERCE 

BUREAU OF NAVIQATIOM 

RADIO SERVICE 



Port of. 



;NEWJORK 



_. .July.JZZ.^ »«^ 191 9 

■This is to certify that I have to-day examined 
the apparatus for radio communication on the 
~-.....?.?Ji.1'.i<.?.^ „ .. s. s. War Spanie l 

(Natlonafity!)'""''~*' »■'— - .^-^ 



of which I am-mastier, ahout to leave this port for 

«—..«, ..,^..,..^.Xi.7£.rp.Q0l....^ . , and J have fQxmd 

the same efficient and in good working order, as 
prescribed hy the act of Juno 24, 1910, as amended 
by the act of July 23, 1912. 



(Signed) 

Master. 



Form 25.— Certificate of Radio Apparatus When Clearing 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 125 



'OH. -MB. MM 



OATH OP MMrren op rotwioN stbam vcssbl oleafiino without PASseNoeoa 
(iM. icT.<ii III [ tnjifii I rf mn 



Department op Commerce 

BUREAU or KAVIdATION 



<^. 






-.., matter of th» 



. St«am«r named the _/^rvr.<W...r 
-_ bound flvm Ote Port of !??ir»rtiL 

! of *^>rrr^ .:.3 tT. :S...^.: r^ in ^ <!omr,.^.^ 



rS)»y to the 

Port of ^esr^saessr:^ in ^ lS-r,._.^ ^ . lAth freight 

{or haOast) only, do solemnly sxoear {or affirm) that taid steart%er xiM not carry upon 
the pre»«nt voyage, ftom any jtmerlcan port, any C^btn, Steerage, Deck, or other 
' Clots Pasaenger, nor any person whatever not regularly entered upon the shipping 
wUdet of the eteamer at a member of the erew rendering service as such. 



C7l 



>,_^_^L:x^. 



Subsaibed and ewom to bnfore me this . 
of f. ..„ , J9 



-day 



OMet^cr of Customs, 



Form 26. — Oath of Master of Steam Vessel Clearing Without Pas- 
sengers 



126 OCEAN STEAMSHIP TRAFEIC MANAGEMENT 

Custom House, N. Y. 
Multi Form No. 
B-13. 

OATH OF MASTER ON CLEARANCE OF VESSEL FOR PORTS 
IN ARGENTINA OR MEXICO, GREAT BRITAIN OR 
IRELAND, OR ANY OF THE COUNTRIES 
OF CONTINENTAL EUROPE 

United States Custom Service 

COLLECTION DISTRICT NO. 10, PORT OF NEW YORK 

DISTRICT OF NEW YORK 



ss. 
PORT OF NEW YORK 

I R. 0. Jones , do solemnly, sincerely and truly 

swear that I am the master of the steamship or vessel called the 

....British S. S. War Spaniel for which clearance is this day 

requested, and that no meat or meat food products, as defined and 
classified by the Department of Agriculture, are or will be included in 
the cargo of the said steamship, or vessel, unless such meat or meat 
food products are duly marked "U. S. Inspected and Passed," and that 
the certificates covering same, required by the regulations of the Bureau 
of Animal Industry, Department of Agriculture, known as Regulations 
25 B.A. I. Order No. 150, have been obtained from the Department of 
Agriculture and are herewith filed with the master's manifest, or will 
hereafter be filed with the supplemental manifest of the cargo of said 
vessel. 



Master 
Subscribed and sworn to before me 
this ..^2.. day of ....July , 1919. 

Form 27. — Oath of Master Under Meat Inspection Law 

If meat or meat food products are included in cargoes destined 
for Argentina, Mexico, Great Britain or any of the Continental 
countries of Europe, the master is also required to swear that 
none will be included unless duly marked, "United States In- 
spected and Passed," and covered by export inspection certificates 
of the Department of Agriculture which are filed with the ship's 
manifest (see Form 27). A Port Sanitary Stateonent showing 
the number of cases of and deaths from various contagious 
diseases reported at its port of clearance during the preceding 
two weeks needs to be obtained from the United States Public 
Health Service (see Form 28), and any bills of health that may 
be required by foreign countries must be obtained from their 
respective consular authorities. 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 127 

The ship's manifest, described in the preceding chapter, is also 
to be included among the official documents required by the 



TsusVBT DtyABmrr, 

V. a. Pcrsuc BKiin SxmnoB, 

Form iM4. 

14. a>,(10»-F. C, Jss. 1044. 



# 



^ 



^\\^^ 



STATES 0^ 




^^^, 



% 



0. 



'^ 



PORT SANITARY STATEMENT, 

U. S. PUBLIC HEALTH SERVICE. 



Port o/._JIew-£ott , aUrr..»- 



to Liverpoo l Eng land 



^«i»«atl.*i?^i»ft^Jfell..?-M??i?i.-(. .- 

Bound /iroyjt,— «.,.He»--Xork,U.2._-. _ 

JVumier of cases of and deaths from the folloiving -named diseases reported ,during the 
two weeks ending Jun» -Slyl^li. —, I^i 



Cerebro-spiiuJ Keniugitis (epidemic) ,. 

Oiolara, Asiatic^^^.,.-,...*^. ».^.,- 

Diphtteria . 

Measles...^ 

Flfigue ., 

PoEomyelitis CS^SS:)— 

Scarlet Fever __»__„_ 

Smallpox „_..».„_»,«» 

Typhoid Fever»„_„j.^ „« 

Typhus Fflvar - ■ ■ , 

Yellow Fever_. 



Totals •» 



NXTVDER OF 



.....a... 

.63,7...- 
.661- 
.._..0- 

.„... 1_ 

1... 

._...ao... 

0.. 

-. .0... 



...J3- 
..AZ.. 
..-J5.. 
„..Q.. 
.„.0.. 

t.. 

.0.. 



It "T*!" '"»*'"" ud txter. ' 



„...p.j^^^.j.^.j,0«««^M,»7*"~-- 



K6 t^ABANT.NABLS CSEAM 



Vessel last fumigated at,^^..^ 
Given UTider my hand and seal this ., 



-.19 



day of ..y:,^^^.^. 



.-^101 




Form 28. — Port Sanitary Statement 



Government because it is used not only for purposes of vessel 
operation, freight handling and accounting but also to satisfy 
legal requirements at time of vessel clearance and entry. On 



128 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

the back of the official outward foreign manifests are oaths to 
be executed by the master of the vessel and the custom house 
broker acting as attorney for the agent. If a foreign trade ves- 



TnEjnniT ciPiaTmirr. 

OWtDms CM. NO. lUl. 

T D um 
C. D., on. l>u 



RCQueeT ron iMMeoiATe oueARANoe 



U. 8. OUSTOMS eCRVlOE 
COM-ECTIOft DlSTRIOT N(x] 



_. ^JU.lZ./?.? ; _...., 191 9 

I, . SgpanL&X_St«Bamhln..£a. 

UacM, OWBW /x B«(ml ol TsaMLf 

„ of thoErl.ti-8iJ..n/B..miX..SBflJii.eA; 

{7iH' motlT* pow«, uid oftiss gl rta«L> 

beroby request (hat clearance be granted immediately to tlie aboTe-o&mod vessel to proceed to tlie 

port of ......li.YJ9«)P0.3L „ _, country of ._;._J!PgJ*P(J, 

prior to itte 6Ui>g of a complete manifest of all caiso on board as required by Sec. 4197, Beviaed 

Statutes, and prior to tbe filing of thippera', owners', or consignors' export deckrationfl as required 

by Sec. 4200, Revised Statutes, on condition that a complete manifest, togetlier vith the ahippeaP 

export declarations or certified extracts tliereof, will be filed on tlis next business day afttt ti» 

departure of said vessel, and io the event of shippais' export declarations not having bean received, 

tbatpro forma declarations on Customs Form Cat. Ko. 7303 will be filed with the eoqjplets manifest 

and the delinquent shippers' declarations will be filed withinfi/tseD (16) days pita the dale of the 

clearance of the veesel. 

Spaniel SteaaBhlp Co. 



{onaj 



Form 29. — Request for Immediate Clearance 

sel desires to clear before delivery of its complete manifest a 
"request for immediate clearance" must be made on Form 29 
and a bond to produce it on the next business day after the ves- 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 129 

sel's departure must be filed with the Port Collector (see Form 
30). The vessel is likewise held accountable for delivery of the 



eoNO or vessel, to prooucc ooMPt-ere MANireer ano 

EXPORT OCCI-ARATION9 



Emow Alt MEN ST TBESE PBESENTs, Tbat .SP.^S^.e?'...3tBaffl8}^P..C.9., _.._• 

sddreas „JL.i?Q^B.W.ftdV!ftI._... -^ , - 

(UoJiW, OWD«, V ftfaoD 

of tho vessel ...^__VaX..SpBXLlfil— ___._ ■ ._„._ as phDcipol, 

4a sureties, are telJ and linnly bound unto the Ukitiu} States op Amebica !□ the sum of five 
hundred ($500) doUais, for the payment of which we bind ourselves, our heiis, executors, a4mia- 
ittrators, successors, and assigns, jointly and severally, firmly hj these presents. 

WrXNTSs our hands and seals this 22..,„...„..^.„ doy of J.uljt.. , 191 9 

WHtEEA3, the aboTft-bounden principal has requested permission to clear the within-named 
vessel to the willun-named destination prior to the filing of a complete mamlest of all cargo on board, 
as requued by Sec. 4197, Revised Statutes, and prior to filing of shippers', owners', or consignors' 
export declarations thereof as required by Sec 4200, Revised Slatutos: 

Now, THtRrroRE, the condition of this bond is such that J the above-bounden obhgors stall 
deliver to the Collector of Customs at the port ol exportation a complete outward mamleat ot all cargo 
00 board said vessel, with the particulars thereof, as required by Sec. 4 199, Revised Statutes, together 
with certified ejctxacte of shippers' declarations Cor such declarations as have been lodged with them) 
not later than the next business day alter tho departure of the said vessel, and m the event of tho 
ahipperv' export declarations not having been received shall file a pro forma export declaration with 
the completyed manifest, and also shall cause to be deUvered to the Collector of Cuslonu wilhm 
fifteen days after the clearance of the said vessel all delmquent shippers' export declarations in the 
prescribed form, end forfailure to file the completed vessel's manifest, as aforesaid,. shall pay to the 
Collector of Customs as liquidated damages the sum of five hundred ($500) dollars, and for each actual 
shippei's export declaration not filed within the prescribed tune shall pay to the CollecUir of (^tomft 
the Buro of fifty (850) dollars as hquidaled damages; the aggregate hquidated damages unjer this 
bond not to exceed five^bundred ($500) dollars, then this obligation to be void, otherwise it aholl 
tcouo i& full force and effect 

Sp&nlel 8tean8>up Co.-. 



-ft.O 



Stgned, Msled, end deUvend la the presence of— 



..«w**^AX^A.. 



Form 30. — Bond to Produce Complete Manifest and Export Decla- 
rations 

sworn export declarations of cargo shippers with the complete 
manifest, although, before the war, it was not required to deliver 
them until fifteen days after the date of clearance. 



130 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

An informal report of entrance or clearance of vessels in 
foreign trade is also made to the customs authorities on Form 
31. During the war the War Trade Board required the master 
to make affidavit and agree not to receive or deliver any cargo 
in violation of the Trading with the Enemy Act of October 6, 
1917 (Form 32) ; and it required the master, owner, time char- 
terer or agent to make application to obtain a license for bunker 
fuel, port, sea and ship's stores and supplies (Form 33). The 
Division of Planning and Statistics of the Shipping Board re- 



Costom HoBMt N. T. 
Uota Poro No. S_17 

REPORT OP ENTRANCB OR CtEAElANCEr Ot VBS3BL3 IH PORaiOM TRAM 

Ko jjiOxjea. 191^. 

Veseel-^Brltinli n/a-gftr-Spaalal . i • ■■ 



Kind of Cargo CenQXRl Net tons_6jA6fiu- 



Master \^..,ZSP.?.3- Crew 7.§. Pass _.X9JL 



Entered I Cleared 



From ., i For IftlilEOo i -^^ 

(Incomplete) 
Vessel docked at | Uanlfest {AMi^AM) B-ees $_a..6Q — 



^^•"•piERbb N. R. 



laden at this port 
{^^_Tons bunker coal Gals, fuel oil 



RKSIARKS 



Form 31. — Report of Entrance or Clearance in Foreign Trade 

quired a detailed report of the movement and lading of vessels 
such as is reproduced in Form 34. 

Having fulfilled all the legal requirements mentioned above, 
the customs authorities authorize the clearance of the sea-going 
cargo vessel by issuing an official "Clearance of Vessel to a 
Foreign Port" (see Form 35). 

Documents Required on Entering a Vessel in Foreign 

Trade 

When a vessel arrives within four leagues of the coast or 
within the limits of a customs district in which cargo is to be 
discharged, the master is required to produce the original ship's 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 131 

manifest for the inspection of the customs official who first boards 
the vessel and to deliver to him a copy of the manifest for each 
port at which cargo is to be discharged. After examining the 



WAR TRADE BOARD 

BUREAU OF TRANSPORTATION 

WASHINGTON, D. C. 



BVKKKn POllM ]l-7 

Seriut .\b. .... 



AFFIDAVIT AND AGREEMENT OF MASTER OF VESSEL GOVERNING 
DISPOSITION OF CARGO 

<"ElI>i«»c< Act" ol Jufic 15. lOl?. nod the " Tradin- »ilh ibf Enemy An " of Orlo*« «, m7.) 



I.. 



R^Q^onea. 



OrricE OF CoiLECTon op Ccstoms, 

Porlo/ JKeit..XOjrX 

july.2D.tli. „, 191 9 

_..,_..._„_ , (to solemn!; declaie that I aio tho maaltit 



(person in cKargc) of the ■..JrltlBh..ja/A.. War. .Spaniel and that I have not received on 

board said vessel and that 1 do not have under tny care or within my control,"and that I will not receive on 
board said vessel, any cargo or part thereof, shipped, or to be delivered, in violation of any of the provisions 
of the Trading with the Enemy Act, approved October 6, 1917. 

I further declare that no part of the cargo on soid vessel is to be, or will be, delivered to other vessels in 
port or is to be, or will be, tranesliipped on the high seas, except, or otherwise than, as follows: 



I lo %(1wm th« CvllreTj o* TruuaUpnuot It 



< II lb« carto OT oor pwl (1 



r VQ«sQ]3 In pen or tmknhlpped o 



« lull ptftlCUliUt M 1IM11<»I«(L 



And 1 do hereby agree, in consideration of the clearance this day granted me for said vessel, that 1 
will, upon reaching each port of destination of the cargo carried by the vessel, (a) deliver to the American 
Consular Officer of the District in which the same is unladen a true ond complete copy of the manifest of that 
part of the cargo to be dischorged at that port, a copy of the Shipper's Export Declaration (T. D. Customs 
Cat. 7525), and also a copy^of this Affidavit and Agreement of Master Governing Disposition of Cargo (Bunker 
Form B-7); and (h) deposit with said American Consular Officer the master's copy of Bimker and Storcft 
cicense (Bunker Form B-l-c). The documents, B-7 and B-l-c, wjl be returned to the master upon clearance. 

I also agree t,hat all bunker fuel, port, sea, and ship's stores and supphcs on board said vessel are for tho 
•ole use of the vessel and that no portion of the bunker fuel or stores will be transferred to any other vessel 
or landed at any foreign port. 

1 further agree that the American Consular Officer at each port at which said vessel dischorges cargo 
OSay take any reasonable and proper steps to satisfy himself that all promises and agreements made by tho 
owners, agents, and officers of said vessel to the United Ststes Government have been fulfilled; I also agroo 
to keep the said American Consular Officer informed concerning tho loading and discharging ol any cargo, 
bunker fuel, and ship's stores and supplies on or from said vessel. 



Uutflt (PcrvoD In Oiarco). 

Snbsnibed and sworn lo before roe this 22 doy of ...„ ^jMiti. _ lo.!?. 



:u)ccti« or cuiuiw. 



Form 32, — Affida'vit and Agreement Governing Disposition of Cargo 



original and comparing it with the copies, such official certifies 
on the original as to its production and on the copies as to their 
agreement with the original, and transmits a copy to each col- 



132 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Form 33. — application and Licknse for Btjnkbr Fttel, Stores and Supplikb 

UNITED STATES OF AMERICA 

WAR TRADE BOARD BUNKER FORM B 1-0 

bUREAU OF TRANsroKTATioN SupcrscdiDg UunktT l''orui8 B 1-a and B 1-b 

WASHINGTON, D. C. 

Serial No 

COMBINED APPLICATION AND LICENSE FOR BUNKER FUEL, PORT, SEA AND SHIP'S 
STORES AND SUPPLIES. 

This form. In qimflnipllcate. (luly executed by the owners or time charterers of the vessel, or by 
his or their duly niithorized reprcsi-nl alive, should be presented to the AKent of the Bureau of Trans- 
portation, War Trade I'.oard (or. 1( there Is no apent, to the ("oUertor of (Customs), at the first port 
from which vc.wi'l Is to clear. If approved and eo\interslgned by said Apent or CoMector of Customs 
It will constitute a "[TImel License." |The license nuist bo visaed on hack hereof at all subscQuent 
ports of the United Stntes and Its possessions or outward voyage at which the vessel calls alter de- 
parture from the first-named port.] 

New York, Date Jul]/ SO. 

(Port at'whlch Ucensells applied for.) 
Vessel's name War Spaniel. Flag lirituh. When built 1900. Tonnage, gross 9879; net 6584' 

Total 1). W. carrying cat)aclty (cargo, bunkers, and stores, summer freeboard) 

Type of vessel Sham l^assenpcr. Number of Offlcer.s S/,. Crew 64. 
(State whether sail, steam, or motor vessel, freight or passenger.) 

Average dally consumption of coal (or oil) at sea In port 

Average speed H knots per hour, when loaded to full draft. 
Owner's name, nationality, and address TV'or Spaniel Co. 

Charterer's name, n.atlonallty, and address 

Date of charter party If time charter, date of expiration 

If on time charter, trading limits 

(State ports of call on voyage just completed, also specify nature of cargo.Clf any, on such return voyage.] 
Trading world wide except to Germany and Soviet Hussia, unless permit therefor, tt issued by U. S. 

War Trade Hoard or by Interallied Trade Committee at [lastlport outside of United States from which 

vessel cleared for United States) 

[.State cargo and complete voyage for which this application for bunkers and stores Is made] 

Copenhagen, The Hague. Christiania or Stoetholm or by the Allied Bloctade Committee at London. 
[State appro.^lmato date of arrival back at United States port) 

Application for License Is hereby made for such Bunker Fuel, Port, Sea and Ship's Stores and 
Supplies as may be desired by the above-mentioned vessel at this or any subsequent port of call In 
the United States, or Its poasesslons. to which vessel may proceed [on the present voyage) during 
the life of license, and Is subject to the conditions named on the back hereof, which have been read 
by the undersigned and are hereby subscribed to 

(Signature of applicant) 

(State whether owner, time charterer, agent, or master. If 
other than owner or time charterer, applicant must have proper 
authority to act In his stead.) 

License is Hereby Granted valid until revoked for Bunker Fuel, Port, Sea and Ship's Stores 
and Supplies as applied for above, [provided any change In voyage outlined, la noted on back hereof 
and counter.slgned by the Agent of the Bureau of Transportation, War Trade Board, or Collector ol 
Customs, _aa the case may be, at the port where such change Is desired to be made.) 

WART TRADE BOARD. 

Vance C. McCormick, Chairman, 
BUREAU OF TRANSPORTATION, 1 
C. Earl Brown, Director. 

(SEAL OF AGENT OR COLLECTOn.] 

By 

Aeent or Collector of Customs. 
THIS LICENSE IS REVOCABLE. 

The four copies of this form are to be distributed as follows: 

Onejcopy Is to be mailed by Agent or (Collector to the Bureau of Transportation, War Trade 
Board, Washington, on the same day received. 

One copy» Is to be retained by the Issuing Agent or Collector. 

One copy, when approved and counterslgucd by the Agent or Collector. Is to be handed to the 
master, and must be retained by him and presented to the Agent or Collector of Customs 
for v1p6 at all ports of call In the United States and Its po.'isesslons on outward voyage, and 
also shown to American Consuls at all foreign ports of call en route. 

One copy, when approved and countersigned by Agent or Collector, Is to be forwarded by him to 
the Bureau of Transportation, War Trade Board. Washington, accompanied by any other 
forms issued In connection therewith, as soon as possible. 
WTB 315 

VISAS OF AGENTS OF THE BUREAU OF TRANSPORTATION OR COLLECTORS OF 

CUSTOMS AT SUBSEQUENT PORTS OF CALL IN THE UNITED STATES AND 

POSSESSIONS, ON OUTWARDv VOYAGE. 

Date Second Port of Call 

-,„,,„„. J Not changed. 
voyage J changed as follows: 

WAR TRADE BOARD., 

Vance C. McCoiimick, Chairman. 

BUREAU OF TRANSPORTATION, 

t • . C. Earl Brown, Director. 

(SEAL OF AGENT OB COLLECTOR.) 

By 

Agent or Collector oS Customs. 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 133 

FOEM 33. — Application and License fob Bunker Fuel, Stores and Supplies (.Continued) 

CONDITIONS. 

It Is agreed and understood that thlslicense Is Issued subject to the following conditions: 

(a) That the voyage will be carried out as stated. 

(6) That the bunker luel, port, sea and ship's stores and supplies herein applied for are for 
the sole use of the vessel named in this application, and that no portion of the bunker 
fuel or stores will be landed in any foreign port or transferred to any other vessel, unless 
In accordance with special permission received from the Bureau of Transportation, War 
Trade Board, direct, or tiirough the local American Consul. Consuls, however, are not 
at liberty to give such approval unless they have received authority therefor from the 
War Trade Board, Bureau of Transportation, Washington. 

(c) That two copies of the Master's Report on Voyage (Bunker Form B-3) shall be filled out 
by the Master, and shall be presented by him to the Agents of the Bureau of Trans- 
portation or Collectors of Customs at subsequent ports of call In the United States and 
possessions, and to the American Consular OfBcer, or if there Is none, to the local Customs 
Officer, for vise at each and every forelgnjport of call on the voyage, and upon the Master's 
return to the United States shall be delivered at the first port of entry to the Agent of 
the War Trade Board, Bureau of Transportation, or, If there Is no Agent at the port, to 
the Collector of Customs. It the vessel is not to return to the United States, the two 
copies of the Master'slReport shall be delivered by the Master at the end of tlie outward 
voyage to the American Consul or to the Collectorjof .Customs at, the port herein designated 
as the end of the voyage for wlilch this license is issued. 

{d) That the Master of the vessel, upon reaching each port of destination of the cargo carried 
by thejvessel, (a) will deliver to the American Consular Otflcer of the district In which 
the same is unladen, a true and complete copy of the manifest of that part of the cargo 
to be discharged at that port, a copy of the Shipper's Export Declaration (T. D. Customs 
Cat. 7526); and also a copy of the Affidavit and Agreement of Master iGovernlng 
Disposition of Cargo, Bunker Fuel and Ship's Stores (Bunker Form B-7): and (6) will 
deposit with said American Consular Officer the Master's copy of Bunker and Stores 
license. Bunker Form B 1-c. The documents B-7, and B 1-c will be returned to the 
Master upon clearance. 

(e) That the cargo has been, or will be, loaded In conformity with any Rulings of the War 
Trade Board respecting Ocean Shipping Preference. 

CO The acceptance by the vessel of this License constitutes a guarantee by the vessel (her 
owners, agents, and master) that all cargo for discharge at a foreign port will be delivered — 

(1) Only to the actual consignee named in the manifest and agreed to when export 

license was granted: or, 

(2) If for any reason, including refusal to accept, delivery can not be made to 

one or more of the actual consignees named in the manifest of the com- 
modities therein described, such portion of the cargo so consigned will not 
be delivered, transferred, sold, or otherwise disposed of to any person, firm, 
corporation, or association, without first obtaining the written approval lOt 
the War Trade Board or the American Consular Ofl;ter having Jurisdiction. 

Note. — In case any material inaccuracies are found In the body of this application, bunker fuel 
and stores may be refused to the applicant In future. 

lection district to which cargo is consigned. Immediately upon 
landing and before entering at the custom house the vessel's 
master is required to mail to the Auditor of the Treasury De- 
partment a copy of his manifest; and to make oath that he has 
done so and that the copy mailed is a true copy. Should the 
manifest be correct thereafter he must likewise mail a copy of 
the corrected manifest and make affidavit to such maihng. 

Upon entering, a final attested copy of the manifest must also 
be delivered to the collector of the port accompanied by an entry 
report and an oath as to the correctness of the manifest and 
report. The master's oath on entering an American vessel from 
a foreign port is reproduced in Form Z6 ; and the oath on enter- 
ing a foreign vessel from a foreign port in Form 37. Both of 
these forms are usually printed on the back of the official inward 
foreign manifest. If the vessel has not been boarded by a cus- 
toms official the master is required within 24 hours after arrival 
to report the arrival to the collector on a report of entrance or 
clearance of vessels in foreign trade such as is reproduced in 
Form 31 in connection with clearance documents. The vessel 



134 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



V. i UIIPTINC BOaIID 

DIVISION OF PUNNmO 

AND STATISTICS. 

Oct. IS. 1>1> 



UNITED STATES CUSTOMS SERVICE 



DaU «I CUaj Anc* . 



REPORT OF MOVEMENT AND LADING OF P«^ua«r« 

VESSELS CLEARING FOREIGN^ 



This report is to be filied o-t la duplicate ior every vessel ol 100 net tou or over upon cleanog. tod delivered 
ta Customs Collector who will mail the original to the U S Shipping Board and file the duplicate 



Name ol Vessel _^ 

Port of final destination.. 
Port of Call or Route. — , 






..Rig.. 



<(Sm Mgt* u Pcm ol r*i«> 



^»B«Ud Dftt nl Anml 



„.„.._„ -^ Time spent in Port of Clearance.. 



CiXHS tonnage. 

Net tonnage, ., ^, 

Total deadweight _..j. -, 

(ljacvi.TiBi C«acOL P*uiw<m Bintna 
C«u. $To«n, *trD w^rva ON Vsstn- 
11 TiTi Piam DoiKDl 

Bunkers leaving ..«. — .... (oni 

Water (boiler) ,. tons 

Stores (inci fresh water) tons 



XTnloading «,.,.«* 

Loading ... - - 

.'Coaling „„.. 

Repairs-. .„,_ 

Idle -_, 

Availing Berth 

Awaiting Cargo — 



•Time in days for each activity in Port of Clearance. 

._..A_» . Awaiting Convoy. , 

_..-.._^ Delayed by Labor Shortage——. 

——a Awaiting Orders.. .__>___^ 

t Awaiting PSarti»T , , 



Awaiting License 

Awaiting Cr^v , , 



. Others (Specify).. 



L 



Deadweight (or Cargo. 

Caifo capacity in cubic (eet 






Total cargo on boards... .^.^ 

'Total cargo on board .,..., 



long toot 



J. -M.cubic (ee« 



DESCRIPTION OP CARGO 
PnnapATcormnoditics lire to be listed If in ballast gi^-t lead 


CoKKOOin 


tone TOKl 


Ci'wc Fbit 


PoiT or Lading 


PoiJ Of 
DUTIFAnOM 


Davs Dvi 
AT Pcai or 












- 




































. 











































































Operating Company or Owner„._____ _.._„ 

Reported by ^ 



{A«Mi « RMpouftila Oftccr) 



Address 

Address__ 



Note ? — In specifying "Rig" insert in the space provided the appropriate term given below.* 
i. Steamer, Passenger and Fmghl 4. Steamer Colher ' 8. Tugi and Bai{ei 

i. Steamer, Freight S. Steamer. Refrigeratot 9,. Motor' 

i. Steamer. Tanket 6. Auxiliary Saihng 10. Tank Bargea 

7. Suliog. including all typa II. Other Opacify) 



Form 34. — Report of Movement and Lading of Vessels Clearing Foreign 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 135 



H. H. Okt. Ifo. ■ 






DCPAWTMCHT OP COMMCKCl 




BUNKAU OP NaVWATion 



CLEARANCE OF VESSEL TO A FOREIGN PORT 



(Sootloo 4201. Bevtsed Htstntoa) 



DISTRICT OF NEW YORK 

PORT OF MEW YORK 



S^BB are to cerltfg all toTiom it floth concern: 



THAT. 



— lUO JoneB- 



Master or Commander of tte..JBritiBh...ei/B..mr spaniei. 



burden 6.465 Jons, or thereabouts, mounted with. 

Guns, navigated with 7a Men, 

— E.9.reier) hujif and bound for „.J'iv^]^oo\,_^n^-iejidi__ 



having on board'.. 



merchandise: and sxores, 

hath here entered and cleared his said vessel, according to law. 

UIVEN under our hands and seals, at the Custm-Housa of the Port of New fork, this 2 3 

^"V of -JtliiX ._., one thousand nine hundred flffrf__NLnoteen 

and in the 1.44tl) year of the Independence of the United States of America. 



Deputy NavGt Offccr. o'epyiyCcllxfor. 



\ , .^ 



Form 35.— Cuearance of Vessel to a Foreign Port 



136 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



MASTER'S OATH ON eNTERINQ AMERICAN VESSEL FROM A FOREIGN PORT 



Waited Slates ©tiBtoms Bewiis 

COLLECTION DISTRICT No. 10 
Poin OF New YofiK 



I, .-.J.WB.itS.'TO..... ..., do solsmnly, eincerely, tod truly ewea* ihkt tbs R*pon 

and Manifest subscrilwd in my name, and now delivered by mo to tho Collector of th« Poit of New York* 
contains^ to tho best of my knowledge and belief, a just and true account of all ths go^iSti^sima, and OMi* 

dtandisp, including packages of every kind and nature whatsoever, which wore on board **» 

at tho timo of hw tailing from the port of ......Wy.Mfio.o.1 «_ EnelEJB4_ ...t.._.......i — , 



or which ha\T> been laden or taken on hoard at any time since, and that lljo packages of tho said goods or© 
S3 particularly described aa in the bills of lading, signed for the same by mo or with my knowkdgo; thai 

I am at present, sad have been during the voyage, master of th« said vessel; ».. — ,... __«... — _ 

._.-__ — — «._ — ; that no package whatsoever, or any goods, 

worts, or merchandise have been, umladon, landed, taken out, or in any manner whatever removed from 

on board tI:o eaid-vessel since her departure from the said Tori of 14.X?.rP?.9.^x_?!?£j.'?.1.''. — — 

except such OS aro now partic\ilarly epcciiied and declared in tho abstract or account herewith, and thai 
the clearance and other papers now delivered by me to tho Collector ore all that I now hax'O, or have had, 
that any way relate to tie carjo of the said vessel. And I do further swear that tho several articles speci- 
fied in tiie snid Jfanifest as sea-stores for the cabin and vessel are truly such, acd were ionafdi put on board 
the said vessel for tho use of the officers, crew, and passengers thereof, and have none of them been brought» 
and arc not intended by way of morchondiso, or for sale, or for any other purpose than above mentioned, 
&nd aro int!5ndod to remain on board for the consumption of the said officers and crew. And I further swear, 
that if I shall hereafter discover or know of any other or greater quantity of goods, wares, and merchandise, 
of any naturo or kind whatsoever, than aro contained in the Report and Manifest, subscrilx^d and now 
delivered by me, I will immodiately, and without delay, make due report thereof to the Colloctxjr of th& 
Port of Now York. And I do likewise swear that all matters whatsoever, in the said Report and Manifest 
expressed, aro, to the best of ray knowledge and belief, just and tnio. 

I do further, aa required by law, solemnly swear that I have, ta the best of my knowledge and belief, 
delivered, or caused to bo dehvcred, into the Post Office at or nearest this port, every letter and every bag, 
parcel, or package of letters that wero on board the said vessel' during her last voyage, and that I have so 
dcUvered, or caused to bo delivered, all such letters, bags, parcels, and packages as were in my possession, or 
under my power or control. 

1 further swear that tho Register of the said vessel, herewith presented, contains the names of all the 

persons who are now owners thereSf except t _...._...... 



end that no foreign subject or citizen hath, to tho best of my knowledge and belief, any share, by ih« w»y ol 
trust, confidcnco, or otherwise, jn tho said vessel.' 

1 further swear thaltho said vessel sailed from the said port of !-i.'ifirje.''?.l....?.')5.l>J!tt. — _ 

cf. .My...-„...., _.^ _, 191 ' 



Pisr 57 K. R. 



POET OF NEW VORK.' 

Sworn before mo this.JL?.. 



';d»,cf.iJ!^ — .i9x', 

J)eputy Collector, 



b« ooUUed i f tho vc*»I lias been bofirded by a cuatoma ofScflr. 



pQtVkvia to III* fi^u of MarvU 3, 18^» ftnd Ju 



Form 36. — Oath on Entering American Vessel from Foreign Port 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 137 

may depart, at the option of the master, after making such 
report and before the expiration of 48 hours. 
Along with the manifest the master is also required to present 



HEALTH, ACT FEB- "S» 1993. FILE©' 
ir.T.Cu»*«» ^^^„^;j-^„R-S CEBTr. ACT FEB. 15. .893 HLEO ^.tf„«H„, _3n.tl^ 

Cnw, '^^ 



OATH ON ENTERING FOREIGN VESSEL FROM FOREIGN PORT 

United States Navigation service 

DISTBICT NO. 10, PORT O? NEW TOBE 



I, „ „ l!jD.J!Dn.OS.._ , do Bolemaly swear, that the Bepcrt 

A&d MajiifeBt exibscribed in my name, and now delivered by me to the Collector at the Port of New York, 

■^contain, to the best of my knowledge and belief, a just and true account of all the goods, waroe, and 

merchandise, including packages of every kind and nature whatsoever, which were on board the' 

,, Briti sh e /e Vaar Spaniel ,t the time of her aaiHng from the Port off 

- IilJ?.a.9.9ljtJEn6.l!«<l ■ 



, 1, ^ - - I,. I -..rr ■ . ■ ■ 1 1. ■- I or which have beoa laden 

or t&kea on board at any time eince, and that the packages of the said goods areas particularly doacribr.l 
as in the bills of lading, signed for the same by me or with my knowledges that I am at proeeni,and bavo 
been during the voyaro, master of the said vessel; that no package whateocver, of any goods, WEwoa, 
or merchandise have ber n unladen, landed, taken ont, or in any manner whatever removed from on boaril 
the said vessel since her dgpartnre from the said Port, except such as are now particularly specified and 
declared in the abstract or account horowitb, and that the cJearance and other papers now doUvored by me 
to the Collector are all that I now have, or have had, that any way relate to the Cargo of the said vessel. 
And I do further swear thai the several articles spocified in the said Manifest as sea-stores for the cabin and 
vessel are truly auch, and were hoTux fide put on board the said vessel for the use of the ofScera, crew, and 
passengers thereof, and have none of them boon brought, and are not intended, by way of morchandiflo, or 
tor sale, or for any other purpose itian above mentioned, and are intended fto romain on board for the con- 
eumption of the said oflicers and crew. And I further swear that if I shall hrroafter discover or know of 
any other or greater quantity of goods, wares, and merchandise, of any nature or kind whatsoever, than 
are contained in the Report "and Manifest, subscribed and now delivered by mf, I will immediately, and 
irithout delay, make due report thereof to the Collector of the District of the City of New York. And I 
* do ntewise rtvear that all matters whatsoever, in the said Report and ManJiost expressed, are, to the beet 
oC my knowledge and belief, iust and true. . . . . . 

^ I do further, as required by law, solemnly swear that I have, to the bo&t of my knowledge afid belief, 

delivered, or caused to be delivered, into the Post Office at or nearest this Port, every letter and every bag, 
parcel, or package of letters that were on board the said vessel during her last voyage, and that I have eo 
dehrered, or caused to be delivered, all such letters, bags, parcels, and packages as were in my possession, 
or ^nder my power or control. 

I further swear that the said vessel sailed from the said Port off _____.., 

. MvRJBOoi on the 1..... day of ._. J_uiX___«_____, 101 9 



„.JL „JElfi.C.^5_H..EU--. 

PortofJVew York. 

SuAirk to before ttk, this %Z— 

day of iuijr , i«9 



Deputy Colteetar. 



'Inaert danominatiOD and name of veaMl. ' 

IZmert the nacie of the place from whence the reeeel lasi eaOed. 
This clanse to be omitted if the veeael has been boarded by a cujstoms officer. 



Form 37. — Oath on Entering Foreign Vessel from Foreign Port 

a list of sea stores, including only articles for the use and con- 
sumption of the ship's crew, and in case of a passenger ship, of 
its passengers. Such sea stores as are not needed for immediate 



138 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



use or consumption may be sealed by the customs boarding of- 
ficer. Surplus sea stores need to be entered for consumption as 
imported merchandise, except that under certain conditions they 
may be transferred, under supervision of customs officers, from 
one vessel to another vessel of the same ow^'ner. 

If the arriving vessel carries passengers the master is required 
to produce the sworn lisf or manifest of passengers reproduced 
in Form 38. This passenger manifest indicates the names of all 
passengers taken on board in any foreign country, their sex, 
whether married or single, whether citizens of the United States 
or aliens, the number of pieces of baggage, the age of children 
eight years of age or under, and in case of steerage or third 
class passengers the location of the compartment or space oc- 



JL,IST OF^ F»ASSK^rCGERS 



_Jl.Q.Jona*^ 



tlnceiely and traly ^fpor 

CvUector 0/ Customs of the Pert of HM.york,. 

tht said vend <iL__^,>l"'e'"P«"'^^ . . 

taid lilt it truly designated 

compartment 

States, 



, Moiter of /ft<>..Brl.U*h.V"—*»'' Spaniel^ 

;l the foUowins List or Manifest, subscribed by mr, 



-, tfo sotemttlft 



ow delivered by me to the 
^ is a fall and perfect list of all the passengers taken on toard 

, , . , from which port said vesset has now arrived; and that on 

of each pasienger, aze (lY a child of. eight years or under), sex, married or single, location of 

space occupied during the voyage [if the passenger be other than a cabin pasienger), whether a cititen of the United 

her of pieces of bjggjge, and the aamt, age, and eaase of death of each deceased passenger, as repaired ty the "Passenger 



Act of IS82t" as amended by the Act of February », 190S. So help me CoJ 



i.2lh_<!«X-5LJ>'l^/P;« 



List or Manliest of all passengers taken un board tA/ ArlUfh— V*-, mr Sp a n liU.. 

whereof-^—AJi^SMM if M/nif»^/,f,m ^. LivefPflB l , ..- — 

burden i*l?5 pc^-i-totu. 



Form 38. — List of Passengers 

cupied by each. In case of deaths it also specifies the date, age 
and cause. The passenger hst is submitted for the inspection 
of the customs officer who first requests its production and a 
correct Hst is subsequently delivered to the customs collector. 

The master or agent of a vessel entering port must also make 
out the radio declaration shown in Form 39; and the Division of 
Planning and Statistics of the Shipping Board requires a report 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 139 



RADIO DBCUARATiON 

(To be rabmltted io duplicate) 

PIER 55 N. R. 



Department of Commerce 

BUREAU OF NAVIGATION 
RADIO SERVICE 



Notice. — "The radio eqnlpmant mnst be in charge of t~o or more persons fkDIed in the ose of such 
npparatus, one or the other of whom shall bo on duty at all times while the ves,sel is being navigated, 
Guch equipment, operators, the regulation of their v;atchcs, and the transmission and receipt of messages, 
except ns may be regulated by low or International agreement, shall be under the control of the master, 
in the case of a vessel of the United State'; and every willlul failure on the part of the master toeoiorca 
at sea the provisions of this paragraph as to equipment, operators, and watches shall subject him to a 
penalty of one hundred dollars."— .4 ci 0/ Julu IS, 1911. 



HEW YORK 



Poet op 

Date ....July...!?. _., 191 9 

Tliia 13 to certify that the .£ri ti sh 

(NatioiialiCy.) 

S.S WSJT.. Spaniel 



of the SpanieJ...St earn ship Co. _ ^ 

(Namo of company or Ime.) 

of which I am master, entered this port on ... Juiy.. .12. , 19l9 , 

having in crew ..„7J5. persons and licensed or certificated to 

(Number.) 

carry ..^.j55D. passengers; that the said "^^^^^{/J/eft/i*' 

equipped with radio apparatus as required by the Act of June 24, 
1910, as amended July 23, 1912; that the radio station is in charge 

of 2.... properly licensed radio operators and the apparatus is 

(Number.) 

m}/:&i!?yt condition. 



Master or Agent. 



This form should be filed in duplicate with the Collector of Cus- 
toms at time of entry, who will furnish one copy to the radio inspector 
of the district on the date of entry in order that proper inspection 
may be madeof the radio apparatus prior to the clearance of the vessel. 



* StrOte out i« or i4 not as the caso may be. 

t Strike out efficient or iaeffieient as the ca£e may be. 



Form 39. — Radio Declaration When Entering 



140 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

on the movement and lading of vessels entering foreign similaT 
to that reproduced in Form 34. 

Before entry is made the master of an American vessel is 



T«BAir*Y nrr *BT«t>.T. 






NT IN OUPklOATC 



APPUCATION AND PERMIT W^WJe Bl^JM^DE CARGO OF VESSEL, CNDER ACT OF FEBRUARY 13, 1911. 

\'^t,* • „»>-Tj'NMrm,6'rt»^ CUSTOMS SERVICE. 

^..t"' ^v^*^y>'>*^^o«^>5J.J:cTi(«°6isTRjcT No..iQ., Port orNW-JacIl ^ _J.«ax„ia-, 19.11. 

*'\^ B»l ■ r *.Vim^-»^-imiy*«o (^HfM u Is »e-qyi'od by iho prrt-iiioDs o( tha Act of February 15, 1011, ftppUcation k boreby mad* lor tl.« liiing 
*5<l*'^l>fi>Wjji»\/'dye»J')^^iior lUn officul l»>ura under Ihoiajd ict, ol Uis ciito of i'.a Britilh S/S. W«r Spaniel 

^V^ •^ 6^ • ' ■ K . 

_J.uly_12._ 



(Piw, cod a plw •!. lUbur, fU.) 
_. 19l^.,, immo(Uit«l7 titer htt a 



i-oltttho 



If^ h«jV^ kfTtcd tbAt all ctr^o 4u<rhArge<l nai,.v this t(>pIicttloa ahall remftiji bi^d (he whui or olbor pbce of iirJafting until teleM9(! bj ■ p«RLit 
thertli^V r«Du>N-*d ia onul^naity with thi^ («rnu ol tb9 r<>^1u cc&enl-ordcr permit, to t>« umied &ft«r ihr «ntry of tho vcmcI «t tho CuncMnLouM, ud 
thit Ura uid v«M«l knd it4 owD«r thoU bo b<^'l Uable L^r all JutiM whioh may bo found to be due tho Govcmmeot oo sccoufit of toy portion of th« 
c^reo loft or atolPD bom the whari alter it£ ducbirfc-o Erom the vessel had, boforu tho delivery of tlie genenl -order panmt. and, furthenuoro, that tha 
lubiUty to the ovftcn of any porUoD ol tho catj^ aad reapoosibUity for ita care ahoU sot be impaired ocr affected by any prooeedicct undv ttu/ ftppli* 

cktioo. Sp«cial appUcatiooia mode W lade or uolajoduriog other thin official bouraon .SUJXday„jnlfrrit-.-.-, July. 13 ,.„ , 19-ISL 

Employ** fequired ^ .., , yjJ-P.gllPJg, 



Iblata J kaawa-4i)(p«ct«n, w^ibAfi, 



I, umplAf».UUv«nJ 



ff»r Spanlftl Coapany 



AmouAt of ddpctfit f / , 
Vorifi^l by , 



Mottff, Afftntt «r Own^ 



Wew York 



PERMIT. (No Fm.) 

To the SORVEYOR OR APPRAISER. 

Ipplicatioo approved and Uceo^ granted .Ttiia permiaaion will not become availibld, however, onUl aft«r the cunifafft of taid veoel ihaU b«v* 
boea deliver od to the boarding olBcer, aod no pirtof Buch cArgoehall bo moved bcm the whati lighter or other place of unlading before tha l«aanc«'of ft 
proper permit thersior- You will iLuigD tho roqairod Duinbor of Inspectors, Weigbere, Samplera and other employees ood have their aervioe* notc4 
.telov. U DO action 10 tikea, notd bc^ow. 



PrgUxntnary entry made 
Station Wa 



-,^l!>- 



— , Doardln^ Officer. 



_ STATEMENT OF SERVICES RENDERED. 

W«, tho and«rsi{TMd, certify tb."*. tho flatetn^a} of aervicee rendered noted oppocito our reipective oamee 



DlTX. 


Eun^oTSD. 


-v?," 


Eammik. 


BiajtAtVttt Of OincOM. 




























































































































">' 







Form 40. — Preliminary Appucation to Lade or Unlade Cargo 

furthermore required to produce to the collector of the port his 
register and the clearance, bill of health, copies of consular in- 
voices and other documents issued to his vessel at her last port 
of departure. The register is retained by the collector until he 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 141 

grants a clearance to the vessel. Foreign vessels are required to 
produce to the collector their registers and their clearance and 
other papers issued at the last port of departure, and then, with- 



o 



o 



o 



TREAfftTHY r>tfiiHTVtVr. 



VESSEL BOND (Temi). 

^or lading or unlading at night, holidays, etc., to land equlpfnenl for repair, «It:.> to dIackArc* en Hchtort, 
outaido of d(>cka, to pay l»gal charr«*t penaJtiaa, etc., to land c*rro In othar cUatricta or foreign port^ to produ 
•sport ftsanifaata aad declu-ationa.) , 

Ekow all Mkw BY THESE Phmetttb, Thai...apj»ni.oA 31tW.9)*l^..C?*JP**}Jf._.»,«*. , 



of ilfl?f..Y.9rI|„.., *. ^ , , «^ „... ae principaty 

toj Jo^.^,P?.^ ^ „ of ^...^^..y.9.T^.^^^ ^ -„ 

And Uenry.^.th ] ^ .^^.T.*??. 

AS miretiea are held and firmVy bound unto the UNITED STATES OF AMERICA id the Bum of 

—.-^ift-y—JIlLOUfiRni-.— .--.-»•..•«.. j««»L..-»-.^..r...r..r..-f. dollare for the payroenl <rf whicb we bind ouree]vee» 

<mr heJTB, executors, administrators, si>cceasors, aad assigna. Jointly and aeveraDy, firmly by tbwe prescnta. 

Wmnss oiir handa and seals this JjB^. _. day of i^..7.«.*.. --_ , 19 19 

WnzBtAB, certain Tcssels of the ?J>».i?AS?.. 9.1®^.?*^?iP.J4j!? «... 

«* expected to enter at and clear from tho port of ?*.^..T.?.'!^ ^--^ -..„ ...■,. 

<lnjing the period from Jw>y„).9:t,i.?A9 to ihelastdayof ...JP«P.e«^.*L.?.^jy.V^„.^:..., 19 

Now, TE£K£FOB£, THE CoVIrtTTON OT THIS ObUOATION 19 eUCB, thaV— 

(1) If the aaid principal shaft pay to the Collector of Customs of the said port promptly on dbmand the 
earns chargeable under law and reflations in conformity therewrth for servicas performed for said vessels 
by customs officers, and shall promptly pay any duea, charges, penaltJee or other sums found legally doe tho 
"UNITED STATES from any master or owner of said vessels in relation thereto; 

(2) And if the aaid principal shall save "the UNITED STATES and the aaid collector harmless from all 
losses and Uabilitiea which may occur by reason of the granting of any permit or hcense to any of said vessols 
to discharge or take on cargo, equipment, baggage, ballast, fuel, or other articles at night," oo Sundays, or 
hohdaya, or lo land, place or store the same on hghtcrs or on piers, landing places or on spafcea adjoining 
thereto, and if same shall not be removed therefrom until proper permits have been presented; 

(3) And if afl articles shown on the manifest of any of said vessels, lo be destined for other customs dis- 
tricts or ports or for foreign porta, are landed at the destination stated, and proof thereoFis f uniished the said 
collector in the form and within the time required by law and regulations, or any lawful ext«nsion thereof; 

(4) And if complete manifests of all cargo destined for foreign ports or noncontiguous territory of the 
UKITED STATES, and shippers' export declacrations and pro forma declarations are dehv^red to the said 
collector in the form and manner and within the time prescribed in Sections 4197 and 4200 of the Revised 
Stptutee of the UNITED STATES, Treasury Decision No. 35ff69 of December 14, 1916, and other regulations 
OP laws relating thereto; 

Then this obligation shall bo void ; othjBTWtee to remain in fuU force and effect. 

Signed, sealed and delivered in th© ,„ » ■ -. __.. , ■■■ - , ^flriT ) 

presence of — 

I ■ III ;,.i « ■ ,... ■■,.■,■,„■» .,,.,■ ...-.^ [siAL-l 

■ > . ■ ■ , I , . tsBAL.) 









(iUKimod nadar like sd d Caogno of AorbsI U. tSM, ss uiModal by tl 

IiartDCBAtp, b) tfbtcb «T«i)t Ttrwn fcai 
<,tEMj'c,ooa3p<ialii(uafl(aif A.B A 



Form 41. — Vessel Bond (term) 

in 48 hours after entry, to deposit them with the consular officer 
of their native country, delivering to the collector a certificate 
from such consular officer to the effect that the papers have been 
deposited with him. The consular officer retains these papers 



142 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

until the master obtains a clearance from the port collector. Re- 
ceipts of any fees or charges paid to American consular officers 
abroad are also delivered to the port collector, together with 



fujutnrr f>c?Airtvi] 
<MB CM. a^ )lll 



PRESENT IN DUPUCATE 
GENERU. PERHn TO LADE OR UNLADE 

UnHed SutM ( 
CollMdon DiMrict No.JlQ__Port_ 
To TBI Couxctor: 



.July..l2_ 



.191 » 



I, the underagned. thi 



JUjcexsfi-Ql- 



'fflf/ff 



ol i)i. BrltlBla b/b t»JLfiBftQ4ft> 

July 12 



JEIEIU^U^U?.. 



. Kavinf complied with all 



I* To Uad baffgflye and cHecta of pftMcngcn and crew. 



191* docked 

reqmremenu. hereby make appKcation 



_Je8_ 



2. To land the foUowiag aitide 
nlade aame, to. ■ 



ol etjutpmenl for repair or adjuMnent and to 
AS MAY Bl MECtSSARY 



9. To land containers of Americaa origin whoae content* were 

T« 1. y>Y tt > iectss«iiy 



4. To diacbarge ballast which conn«t« ^* ■ , , ■ , 

and which I declare to be of no commercial value and not brought ai merchandtie. 

}. To land the followiag articlea of equipment not to^e reladeo. 



/ - . L _j L-i 1 J J • V DAY OR N16HI 
a To take on board whJe unlading dunng the 

• [>««« BI««U 

COAl, CARGO, LUMBER li tTC. 



-the following 



IBaUmv Ohvv. \Amitm. Owl) 



(M•t^*t. OatwF m A$tfti.) 



AAA,... 12 Broadway 



To the SorvfTor: PERMIT (No Fee) 

Dedared fo before me and application approved and license granted provided there is no risk to the revcDO«; 
lospectors will make their return hereon. 

-Tuly 12 /9/.© 



-DtputyCoiltdor. 



INSPECTOR'S RETURN 

To &e CoUector: 

All articles enumeratod above were discharged, laden or reladen on board in accordance with the terms ol (tit 
appltcatioo and permit and proper return made thereon except, viz : 



Smptdm, 



Form 42. — General Permit to Lade or Unlade 
written statements covering consular services rendered to the 
vessel M^ithout the payment of fees. 

As the cargo of a vessel entering from a foreign port is dis- 
charged under supervision of the customs authorities, the agents 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 143 

or owners prior to the vessel's arrival make application to un- 
load either by day or night or on Sundays and holidays, and for 
the assignment of inspectors, weighers, gaugers, samplers, etc. 



TRKA3Uny DtPA 



PILE IN DUPL-IOATE. 
APPLICATION AND PERMIT TO ALLOW UNPEBMITT£D CARGO TO BEMAIN UPON y™aRF. 



United .gtal^s ©ustoras ^extsice, 



ComcnoK DUT3SOT No. ...10..., Poet of 

.j^uiy...!?. 



NEW YORK^ 

/9..1? 



To TOE Collector of Customs: 

Application is hereby made to allow the unladen but not permitted cargo of the 

.War.^paalfil _. of the „......,..Spaniel_,Ste:ejrshij) _ Lin^; arrived 

on ..J.uly .12 , 19.1.9.., to remain on Ihe wharf untlL-^.JP-AM.« o'clock orn. - , 

..J.uly-15...., lO.Jia 

The ouTiers of said vessel hereby t^ee to indemnify the Collector of Coatoms for and to save him harmless on 
account of any and all losses, claims, or risks which may result from the panting of this apphcation, and the 
liability of said owners under this acrrcomc-nt aliall coatinuo until the cierchcndibe is duly removed from the v-hnrf 
under general order or delivery permit. The rights and liabilities of the o^^tiers of said vc-ssel and of the owners 
or consignees of the cargo, respectively, shall remain imimpaired by tte granting of this application. 



IUkks. 


N^..„. 


.D.sc=>^o>,„>.M....^.«.. 
















































.^ 


War Spaniel Co. 

Master, agent or owner ofvtssd. 



p.ol 



PERMIT. 

To XBE Inspectoe: 

The inspector on board the above-Bamed vessel will allow the tmladcn but not pcrruittci cc'^ to ramoin 

upon the wharf ujitil6. J..1I. o'clock on ..lHly.-16._ _, 19.1?.., ^d ^3 ^oon aa prncticabie 

thereafter he will send cargo then remaining on the wharf and not permitted to the proper General-Order Store. 



.., 19_ 



DeytUy CoUectm. 



Received by inspector at . 



IiuptaoT. 



Form 43. — Appucation and Permit to Allow UNPERMrrrED Cargo 
TO Remain Upon Wharf 

The permission granted in the preliminary permit or license 
which is issued by the customs collector or his deputy does not 
become available until after the cargo manifest has been delivered 



144 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

to tlie boarding officer. This application to unload and the pre- 
liminary permit are executed on Form 40, which is known as the 
application and permit to lade or unlade cargo of vessel, under 
Act of Feb. 13, 1911. Before such application is made or permit 
granted, the owners or agents are required to execute the vessel 
bond reproduced in Form 41. 

This is followed, after all customs requirements have been 



TlET^ 55N. R 



Cnatoro* (>i. N*>. iiW- 
C D , Ut. uPli. 
I^TLIj "General Order " wU) issue to the loipector la chArg« of V«!«el- Tbe goods doI permitted wtl) be tnimedlAtetv oenl to 
G«twnM>rder Warcbooae. Qnle«9 a license baa b«eQ granted by tbe Collector allovriog them to remAio od tbe wbarf a epedfled time, 
odI to exceed iorty-elght hours Irom the time of tboir disrharge. at the riek of the owaer of tbe vcsmI. 



'"GENERAL ORDER" TO SEND UNPERMITTED PACKAGES FROM WHARF TO PUBLIC STORE. 



Suited 5tat£S (JPuBloins J^cvuicc, 

ao NEW YORK 

COLLECTION DISTRICT NO..Ay,.., PORT OF._ ._ . •" 

Collector's OtfUt,^ July. "XZ IDl » 

The Inspector on boanl the ...Ji:J..t.i.8h..)?/.9...W».r..SPftI}i9.X „.„_„..„....^ 

i 1 -...; . -Master, from.._„_Li»arpiODl ,.._ , will allow to be 

landeJ. and'wiU Bead to the Public Store, No. .5.13/."j8i."W"eJ9.^...20JWi..S.t» _ 

Street, all packages for which no permit or order shall have beeo received by him contrary to this direction, 
except perishable articles, gnnpowder and explosive substances, and neat cattle and hides, which he will 
retain on board, and send notice thereof to this Office. 



ColUcto. 



Xaval OfHur. 

a^Bulky packages of iron, 6\ex\, tin, aod macbio«ry uill be eeot to a bonde<l abed 

kf ibe usual vaighing. gaagiDg, and raeasuriDg will be done before seodiog goods ooder tbia order. 



Form 44. — General Order to Send Unpermitted Packages from Wharf 

TO Public Store 

complied with, by the general permit to lade or unlade, repro- 
duced in Form 42. In this document application is made by the 
master and permission is granted to land the baggage and effects 
of passengers, to load and reload articles of equipment requiring 
repair or adjustment, to load specified articles of equipment not 
to be reloaded; to load containers of American origin whose 
contents were consumed on board; to discharge ballast; to take 
cargo, coal, lumber, etc., on board by day or night while unload- 
ing; to retain on board the cargo manifested for certain points, 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 145 

and to take any other action for which special permission is 
needed. 

Should the owners of the vessel desire to retain unpermitted 
cargo upon the wharf until a stated hour and date instead of 
sending it to the proper General Order Store, they are required 
to make application to allozv unpermitted cargo to remain upon 
wJiarf and to indemnify the collector against any losses, claims 
or risks resulting from the granting of such application. The 
vessel owner, agent or master may thereupon receive a permit 
to retain cargo upon wharf for a specified time. This application 
and permit are executed on the blank reproduced in Form 43. 
Unpermitted merchandise not covered by such special license or 
permit to remain on the wharf is sent to the public store named 
in a so-called "General Order" issued to the customs inspectors on 
board by the port collector, excepting that perishable articles, 
gunpowder and explosives, neat cattle and hides, are to be re- 
tained on board the vessel (see Form 44). 

_ ) 



h }} 



k 



\ 



(TV 



CHAPTER IX 



SHIPPING DOCUMENTS REQUIRED BY THE UNITED STATES 
GOVERNMENT (Continued) 

While steamship companies are concerned directly with the 
ship's papers and the vessel's entrance and clearance documents 
referred to in the preceding chapter, they are also concerned with 
the many official documents required of importers and exporters. 

Official Documents Required of Exporters 

The bill of lading discussed in Chapter VII is a commercial 
document governing the relations between shippers and ocean 
carriers, but it is also an official document required by law, its 
contents is legally prescribed in part, and its production is re- 
quired at time of entry when merchandise is imported. Several 
documents are, however, specifically required from exporters by 
the Government when merchandise is shipped abroad, and the 
ocean carrier needs to check up the exporter. 

The exporter is required to prepare a sworn export declara- 
tion or shipper's manifest such as is reproduced in Forms 45a and 
45b. The exporter makes oath that the merchandise listed in 
the declaration is a complete account of his entire shipment, that 
its description, quantity and valtie are correctly stated, that the 
consignee named is the actual consignee, and that none of the 
merchandise is shipped or to be delivered in violation of the 
provisions of the Trading with the Enemy Act of October 6, 
1917. The declaration contains the name and address of the 
shipper, his signature or that of his authorized agent, the place 
of original shipment, the port of exportation, the destination, 
the name of the steamer and carrier, the marks and numbers 
contained on the package, the number and kind of containers, 
description and quantity of the merchandise, and its market value 
at time and place of shipment stated separately for wares of 
domestic origin, including goods altered or remanufactured in 

146 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 147 

the United States, and foreign products in the same condition as 
when they were imported. 

Each export declaration is given an official number. In case 



ratail 1^ acM tr *. L S>>0, Ub, U Sua Sb tl. «. rm lin 

(For Unilad Sutna Ciutoas tat Wer Trad* Bonn) ) 

SKIPPER'S EXPORT DECLARATION 

af UEdcsmisE sripped to mim mnmis or kcn-contisuous lERKironiEs of m u. t 

C^CIurMC* will oot be graated until ilitpper'* decUrHioo ku bteo tied wilh lh« CoUfcWr o( 
U. S Go«r«awtit cjfKm »iiii»tic» •-« tooipiled frem lUa decUfUlt-a ••<^ iL<llMt,b* a 

Goo<l.dupp«lbr ^ gASTON,WiLLIAWStWl6Q0t{!:W 






TUt tpcn let SM el CuKm^ 

»o.-4.B97fin . . 



(CwU) Ho. DiJt.) 



Addreast L...S9JB.tJ»i3a7. s.e» Tork-.CLty. 

(H>Kbci.> (3imL) (CUT.) (SUiZ) 



_ii,«w_.ycLtk.. 



vu. 



(Curicr Iroffi taurior [ 



Fdr slupmeot on tHeJllcta. tine atoG^flt .X-. 

<HuM c4 urriec U i mh I, firt ujof, sistlt* i^vcf. tod lUf U lc&9«a> 



FromUew-XorJ.city To umzoAte forei^ de»tinatioa«-Buaiios,Alr.Q.O—JLrgen.tliie.„ ......,_ 

<tl. S. OmIoibi pofi ol czpotlfttJeo.) (City.) (CocbUtJ 





71btS'.«'ot>uicU« 
cw. 


COMMODirV. 


BoudCodc 
Mnbu 


Quuitily 
i'o1.iM2.J4mb.J 


VabM at liaa and placa al ihipsoMtb 


llvbulraiatm 


ration ctolh. ptiQCng tkr«>»... applet, elc C*lltr.i 
*K., *ill aoi b. .kcept.d. 


V. S Pfadut... 

ramaBBlacliir.4 io 
Iha Unilad Sutt*. 


Fouls* PradacO} 








3q?;nnPH 


zzzzKXsa 

..„,...4fl 

£60._„ 

. 380 


Oallvi 

.. 30.0..... 

..a. — £0.... 
IDQ.... 


QMy 


_.SiNi9D.{i3 Aire 


a 






...y._IL.C 






..S„10p/57S.. 

..7..JI..C 

-.a..iP»3/j.4,_ 


_l..tal9.. 
..3...c/a.... 


...OlQ.I 

■ li^g 


jata - 





...7...R..C. 

V 1/3 


■frumnn . 










































































WiiybiU or Kiinircst 

Ko, . .Wl 


I Cc/tily Ihit above-<lcscribvJ jMiii wcrt ^ itptd as eUUd herein except u olbtrwue nole^ 



], Ibe aDdertisnedL folemaljr and Iculr declare tbai th« abore Btatemeot Is 
the party named; on board the vcscel. c»r, or vcbicla; u>d to tbe place ot cour 
article is truly tUtod and that th« t»]hm ihfot an tiie actual costs o true it 
I further dt^lare that oone of the mcj-chanditc dctcribed above b to be laden < 
•hipped on the high teas cxc«p< aa ftUr ctat»4 »Wv«; I fvrUer declare tbat at 
UoD of any of tb« provi&ioDS of tbe 'Tradrof vitJi Hi* Eocay* act« 

approved October 6. 1917; tha t Y J BEJg J I OPiE M ^ QQm 

is actual consi^ee of said merckacdii«, ud t^at U aklimest h mtde to a bank or other broker, factor, or agent, that- 



a complete, just aod true account of alt mercbxadtte shipped bv 
itry named above; and that the descriptioQ and Quaotity of eaca 
larlcct values at the time and place of sbipmcots tor exportaliooj 
on any other vessel Id Dort tbaa that oajncd above or trans* 
3ae of Mid merchasdUe i# slu;>pod o^ to be delivcfcd to vioU- 



?^^_^» ahQTm 



-k Is the acttnl eooslgirae oa 



(Dtpvt7 ooOector. s«tuy public, etc.) 



<Sl8„..ur.) RASTQM , Wll I lA MS I WiGMOffE. tftC. 

Authptiied agent 

" ' ' (£&abar 01 UvTawataiT. a^aat. ata.1 

(Addftx) ■ ^ O r» aJ»uy — H V citv ' 



Form 45A.— Shipper's Export Declaration 

of shipments to foreign countries it must at present be prepared 
in quadruplicate, except for shipments in transit through the 
United States from one country to another ; and in case of ship- 
ments to non-contiguous territory it is prepared in duplicatCa 



148 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

INSTRUCTIONS. 

Read carefully to avoid dday at ahipping point. 

This form must be prepared In qimdrupllcato for all merph.indlsp shipped to a forelfm destination, 
except shipments In transit throiuh the I'nlted States from one furelk'n eountry to another, and In 
duplleato for merchandise shipped between the United States and Its noncnntlciious territory. When 
merchandise Is shipped forelKn, four coi)les of this form must be presented to the collector of customs 
for each conslenment. The collector will retain the orltjinal and one copy and deliver the other two 
copies to the shipper. The shipper will present one copy to the steamship company and deliver 
the other copy with the goods to the Inspector of customs on the dock, without which no Koods'will 
be received. The copy delivered to the steamship company must accompany the ftoods on their 
vovage and be delivered by the master to the American Consular olflcer with the manifest at the 
port of dtscharRe. The copy delivered to the Inspector of customs upon which he will make his 
notifications of short shipment, etc.. must be delivered to the vessel to bo attached to the manifest 
delivered to the collector upon clearance. 

Export license number and date of expiration must appear Immediately above goods 'shipped 
thereunder . 

The War Trade Board code number of the article ftlven on the export license must be Inserted after 
each commodity In the column following the description on the face of this form 

If goods are to be delivered to other vessels In port or transshipped on the hlRh seas, the articles, 
quantities, and values, and name and address of persons, corporation, vessel. Government, etc., to 
whom transferred or delivered, must be stated on this form. 

1. Shipments from Interior points for exportation. — If shipped on a through bill of lading, the 
shipper must prepare the original export declaration In qu.adrupllcate for foreign shipments and In 
duplicate for shipments between the Unlte<l States and Its noncontiguous territories and deliver 
forms to the carrier to accompany the shlpi'lng papers to the port of exportation. If shipped on a 
local bill of lading, the declarations may be attached thereto or mailed separately to the consignee 
at the seaboard. 

'(a) If the shipper prefers, he may place the original declaration, but not the carrier's extract. In 
a sealed envelope addressed to the Collector of Customs with his name Indorsed thereon and the 
fact of sealing noted on the declaration and deliver It with the extract to the carrier. If goods are 
consigned to an agent at the seaboard for transshipment and exportation the shipper may mall the 
declaration and extract properly prepared direct to the agent. 

(b) TJpon arrival of the goods at the port of exportation, the carrier mtist Immediately deliver 
the original declarations, sealed and unsealed, and the carrier's extracts to the Collector of Customs 
who will retain the original and certify the extract and return It to the carrier, vessel, or party named 
to attend to exportation. 

2. Exporting vessel or carrier. — Care should be exercised In receiving goods destined for foreign 
countries or noncontiguous territories not accompanied by certified extracts or original declarations, 
as clearance will not be granted until the export declarations have been filed with the Collector. The 
copy must be attached to the vessel's manifest or car manifest or copy of waybill when presented lor 
clearance. 

3. Before a clearance shall be granted for any vessel bound to a foreign port, the owners, shippers, 
or consignors of the cargo of such vessel shall deliver to the Collector manifests (or declarations) of 
the cargo or the parts thereof shipped by them respectively, and shall verify the same by oath. Such 
manifest (or declarations) shall specify the kinds, quantities, and values of the articles and the^oreign 
port or country of destination. (See sec. 4200, Rev. Stats.. U. S.) 

If any vessel bound to a foreign port departs on her voyage without delivering manlfesf^nd obtaining 
clearance, the master or other person in charge shall be liable to a penalty of J500 for every .such 
offense. (See sec. 4197. Rev. Stats.. U. S.) 

Similar provisions apply to exportations by rail, vehicle, or ferry. (See sec. 1. act March 3, 1893.) 

4. The shipper must prepare this export declaration and sign the four copies and the oath be 
taken on the original before a customs officer, notary or other authorlaed officer. The declaration 
must be signed by the shipper, but the oath may be omitted on shipments to Canada or Mexico by 
car. vehicle, or ferrj'. If the declaration Is executed by an agent for the shipper the authority must 
be In writing on this declaration or other document filed with the Collector. The values and names 
of shippers may be omitted from the copies to be delivered to transportation company, but must 
always appear on the original and the copy for use of War Trade Board. The original Is for the use 
of customs officers and will be treated as confidential and information not disclo-seii without wTitten 
authority of the shipper or his agent. Export statistics are compiled from these declarations and)Bll 
data required on the prescribed form must be furnished. 

5. Domestic articles exported.— The value of all articles grown, produced, or manufactured In 
whole or part in the United .States must be stated in the column of "U. S. Products.' 

e. Foreign articles exported. — The value of articles of foreign origin shipped out of the United 
States in the same condition as imported must be stated In the column of " Foreign Products." If 
foreign articles are subjected to any process of manufacture or alteration In the United States they 
become United States products and must be reported as such. Thus: Imported raw sugar refined 
In the United States should be reported as a domestic product. 

7. The value of articles to be stated In the selling price or the true market value at the time and 
place of shipment for exportation. 

8. Description of articles exported must be accurate and complete. General terms such as dry 
goods, groceries, meats, machinery, millinery, etc.. will not be accepted. In the case of cheese the 
declaration must state whether filled or unfilled, oleomargarine whether colored or uncolored, butter 
whether pure, adulterated, or renovated 

9. The kind of packages as boxes, barrels, etc., and»the netlwelght exclusive of 'outerlcoverlngs, 
must be specified. 

* 10. The total quantity of each article expre.s,sed In the usual measure of pounds, tons of 2,240 
pounds, yards, gallons, etc., must be stated. Domestic splrlta^exported must be stated In gallon8_ol 
50 per cent alcoholic .strength. 

11. The country of final destination of goods — that Is, 'the country to which' goods are sold — 
must be shown. Special care should be exercised to state the final destination of goods shipped 
through Canada to Europe, and of goods to be transshipped in the United Kingdom, the Netherlands. 
Germany, and France en route to other coimtries. 

12. Inspection certificates. — Process butter or butter adulterated or renovated must be 
accompanied by certificates of purity issued by the United States Inspector of dairy products. 
Certificate of inspection must be presented to the Collector for meat and meat food products exported 
when required by the regulations of the Department of Agriculture. 

13. Export schedule B may be obtained free of charge from the Bureau of Foreign and Domestic 
Commerce, Department of Commerce, Washington, D. C, and will be of much assistance tojezporters. 

To the Collector: I hereby authorize 

to act as my agent for customs purposes In the exportation of tiie,.wlthln-deacrlbe(Kjkooda Pl^e 
deliver the certified duplicate accordingly. 

Sbipt'er. 

Form 46b. — bacx of Shotbr's export declaration 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 149 



The original and one copy of the declaration covering a foreign 
shipment are retained by the port collector, a third copy is pre- 
sented to the ocean carrier by the shipper^ and the fourth copy 
is delivered by the shipper with his merchandise to the United 
States inspector of customs at the dock. The copy delivered to 
the ocean carrier accompanies the cargo and is delivered at the 
port of discharge to the American consular officer together v^^ith 
the ship's manifest. The copy presented to the customs inspector 
at the dock is delivered to the vessel after he has made notations 
of short shipment, etc., and is then attached to the ship's manifest 




Form 46. — Export Meat Inspection Certificate 

Mrhich is delivered to the port collector upon clearance. De- 
tailed instructions are contained on the back of the export 
declaration reproduced in Form 45b.^ 

Special inspection certificates need to be presented with the 
export declaration in the exportation of certain commodities 
where required by the Department of Agriculture. The export 
inspection certificate shown in Form 46, which covers meat or 
meat food products, certifies that the products shipped have been 
inspected by an inspector of the Bureau of Animal Industry and 
passed as sound and wholesome and were derived from animals 
that were free from disease. Similar forms of certificates are 
issued for meat or meat food products prepared or packed in 
preservatives, for unedible meat products, and for live meat 

* Since writing this paragraph the war requirement of four copies has 
been abandoned. Two copies are now required as before the war. 



150 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

animals. Process butter or butter adulterated or renovated must 
likewise be accompanied by certificates of purity issued by a 
United States inspector of dairy products. 

When exports containing imported materials are exported 
under the drawback privilege which allows the exporter 99 per 
cent, of the import duty paid on such materials, an application 
must be addressed to the Secretary of the Treasury for a draw- 
back authorization, the drawback agents of the customs service 
must be advised of the shipment at least one day before it 
leaves the factory or warehouse, and a notice of intent must 
be filed with the collector at the port of exportation before the 
wares are loaded on the vessel or before they cross the Canadian 
or Mexican border. Special records open to Government in- 
spection must also be kept by the manufacturer. The draw- 
back claim must be completed within three years from the time 
of shipment by filing the necessary drawback inspector's certifi- 
cate, drawback entry, certificates of manufacture, landing cer- 
tificates or bonds, bills of lading and other certificates and affi- 
davits required by the customs authorities. The complete cus- 
toms regulations covering drawbacks may be obtained free of 
charge from the United States Treasury Department. 

During the war, exporters were also required to obtain export 
licenses. Certain shipments of small value were licensed by the 
Collector of Customs under limitations prescribed by the War 
Trade Board, others were covered by special licenses issued by 
the War Trade Board through the customs service; and still 
others required individual licenses obtained directly from the 
War Trade Board upon applications filed with the Board or one 
of its branch offices. American houses or branches established 
in neutral territory or in countries associated with the United 
States in the war were required to obtain an enemy trade license 
from the War Trade Board before performing contracts involv- 
ing trade with an enemy or ally of an enemy. 

Special war regulations governed the exportation of condensed 
milk, tin plate and terneplate, manufactures of tin, gold, cot- 
ton and silk, of raw cotton, and silk, and also of sugar, wheat 
and wheat products to Canada. Special procedure was enforced 
in the case of exports to Norway, Sweden, Holland, Denmark, 
Switzerland, Great Britain, France, Italy, and Belgium. Since 
this control of exports by the War Trade Board was due to 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 151 

a temporary war emergency it is not deemed desirable to de- 
scribe its licensing system and regulations in greater detail. 
During the war, however, the Freight Traffic Departments of 
many steamship companies had special license number clerks 
to check the licenses covering cargoes. License numbers were 
specifically indicated in each bill of lading. 

Official Documents Required of Importers 

The United States Government requires the importer to pre- 
sent the bill of lading covering imported cargo, thereby con- 
ferring upon this shipping document still another legal function 
in addition to those mentioned previously. A special document 
known as a consular invoice is also required in the entry of 
imported merchandise at the custom house. The foreign ex- 
porter is expected to prepare an official invoice containing a 
complete list of the items shipped to the United States ; how they 
are packed, how the packages are marked, their quantity and 
price per unit, the total amount paid or to be paid, all discounts 
and rebates, charges for brokerage commissions, insurance, in- 
land freight, and packing, and the cost or value of containers, 
twine, and paper. The consular invoice just described is the 
so-called purchase or blue form (see Form 47a) to distinguish it 
from the consigned or white form which is used when imports 
are shipped to a foreign manufacturer's American branch house, 
agent or representative (see Form 48a). Since the imported 
wares in this case have not been sold, the consigned invoice 
shows the price at which they are freely offered for sale in for- 
eign wholesale markets and the price which the foreign exporter 
would have received or was willing to accept had he sold them 
instead of consigning them to the United States to be sold here. 

United States consular invoices are usually issued in tripli- 
cate, and when covering merchandise destined to interior points 
in quadruplicate. They are presented to the United States Con- 
sular Officer in the consular district in which the commodities 
were produced, purchased, contracted to be delivered from, or 
assembled for shipment, for his certification ; and in case no 
United States consular officer is available they are certified by 
other individuals authorized in the United States Consular Regu- 
lations. Should the consular officer be of the opinion that the 
prices or value stated in the consular invoice are incorrect he 



152 



OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



Jfi^^iuyrKs^ iisrVoicE. 



flllWftnorftr .Tilly o°^;^^^^4 



Invoice of __S3iQkaA.^ee.t-aubl?.at 

hji -Jotn-Doo -&-Coppany. , of. Haw York 

from _^icJMu?d-Roe-4-Coii5>aay — ; , o/ — Slngflpora 

to be shipped per ...a/a-ICTRA- to.IIaw Yark 



. purchased 







l-to-4W 



■ Laaa..CJiar6aa..<"'*lucled .- 
ice: 



mix DEscBimoN of goods.' 



-X^a-Caa o a-Smo!taa-3bflet_ 



— ^axxtatlog.Jti'.'b'bar 

cbtttalnlng^AiSa-plcula.. 

— at—iE'XlB-SlneaporjQi — 



Joolla-Lftbor.. 
.Bcet^Elra 



S<..744^X.- 



-Adja. -Chargea. . not - laclvtded .. 
■ in tho above price; 



.Packing 

•TslaSrama i~. 



.Consular— Iiuroloo 



» B.~Aivv*'**»^'>*c*^o'V**^'Bg,Md*JloU)«r«««fcdiM«<a, 



-3A-l.Qi5.Qa8.(i. 



..ca>< 



D...eoo. 



stoooia. 



....atr&lta~iaQ7.2S. 



.ftp 



ifia. 

A-- 

....108.. 



.Q.O. 



.ao. 



,20. 
.AQ. 

.46.. 
I.-60 
00. 
25. 



OMnoLAB Oonacnon o« 



TAo above invoice is correct and true. 

(Signatvn nffvAMa or mIZct) , RlChard-aoa-A-Compaoy- 



. ^....itA.^^:*'^!^^!^::! 



^. 



Partner 



y7 



FoKM 47A. — United States Consular Invoice (purchased form) 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 153 




si 



s- 


■s 


>• 

CO 


■1 

i 


o 




UJ 




'^ 








^ 
£ 


i 

< 



.1 



ll llllll 



imm. 



viililiiili 







154 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

states what he regards the correct value to be under the head- 
ing "consular notations." The invoices are required to be 
stamped and the stamps to be canceled by consular officers to 



^KHiJtUXX^XA^ 



INVOICE. 



Tnvoioe of ^ Plan t a t lon-Rubbap. 

by — Tha Mfti /l yalA .Bubb«r_Coii]papy- < of tn«ni« T.^t^ TMr 

to — a ichar d-Rri ft k C nmpany , of Fhlladalphla 

to be shipped per _a/fl..IHDRA to Han-Jtorle , 



Uaiu, 

KuVBliul.ur 



CMU, obwcw, u4 upstueo. ) 






jacAQ-lb. miT p"f ih. 



— EOB-Slngapore- 



- Chargfls. Included, in-tha - 
above price: ■ 



.-iaskterdge-iu:x)adin^ 



-grelght to SlTigapore- 
—Conaiilai*— InToloa 



.JP.aoklns- 






-eAi- 



4>-«4^fa 



-ft^C 



S^.-«)- 



e 1; 1 



S^i4T«0 



^ft- 



*S- 



C«KiuiJiK GoMRBcnoira c 



7%e above invoice is oorreot arid true. 



Tha Walayqlft Ruhhar rnmpany 

_??5_Pr.%^fe»»«y..*C*.iAL_ 



Form 48A.— United States Consular Invoice (consigned form) 

show the payment of fees. The master of a vessel arriving 
from abroad is required by the customs officials to present copies 
of all the consular invoices covering the cargoes which are to be 
unloaded, and each importer or his agents needs to present the 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 155 



original consular invoice covering his merchandise when clear- 
ing it through the custom house. 

The prices or values shown in a purchased invoice are stated 



t^i 



\s * 



|2t 



= 11 



I" 



j« '^ '>'g S-.S Sf I 






^^ 



|-5.iS|^||| 11 



t\ 



."^> 






[^ 4 



If I 

I I ^ 

U I 

? I i I 




•Jill 111 





•5 " 



• 3 



1 ^ 



Form 48B. — (Back of Form 48A) 

in the currency of the particular transaction: in United States 
dollars if the transaction was in American currency, and in 
pounds sterling if in British money, or in German marks if in 
German money. In case of a consigned invoice, on the con- 



156 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

trary, the prices or values are stated in temis of the currency 
of the exporting countr>\ If a depreciation in currency has 
occurred the United States Government requires a currency cer- 
tificate to be attached to the consular invoice showing the per- 
centage of depreciation as compared with the standard currency 
and the value in such standard currency of the total amount of 
the depreciated currency included in the invoice. 

The consular invoice is required for all imported merchandise 
exceeding $100 in value, except personal effects accompanying 
a passenger. If, however, an importer is for reasons beyond his 
control unable to produce such an invoice, the port collector may 
permit him to enter his imported merchandise on a pro forma 
invoice prepared on a prescribed form, accompanied with a 
bond covering double the amount of estimated duties, or if the 
merchandise is free of duty, for the sum of $100. Neither a 
certified consular invoice nor an application made on a pro forma 
invoice is necessary in entering merchandise valued at less than 
$100. 

The entry of all importations whether free or dutiable, at 
the custom house by the importer, or a licensed custom house 
broker acting for him, is carried out in accordance with a highly 
technical code of customs regulations. The documents or forms 
required are too numerous for complete description. They vary 
according to kinds of entry as follows : entries for consumption, 
warehouse, combined warehouse and immediate exportation, re- 
warehouse, combined rewarehouse and withdrawal for consump- 
tion or for immediate exportation, withdrawal at original and 
secondary ports for consumption or exportation, preliminary 
entry and immediate delivery and informal entry including 
entry by appraisement, immediate transportation without ap- 
praisement, transportation and exportation, withdrawal from 
warehouse at original and secondary ports for transportation, 
exportation with benefit of drawback duties, customs mail en- 
tries, and baggage declarations and entries. Further variation 
is due to separate requirements for different kinds of imported 
goods. 

Altogether there are several hundred forms which are vari- 
ously used in the entry of imports. They are variously sup- 
plied free of charge by the United States Government, sold by 
privileged individuals, or printed privately by the importers. 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 157 

Some are obtainable at one office and others at another. As 
the customs officials offer no assistance in preparing them, the 
services of a specialist are usually essential. 

The correct entry form prepared by the importer or his agent 
must be presented with the bill of lading and consular invoice. 
On it he is required to list the imported wares by description, 
shipping marks and numbers, to state the foreign value of each 
kind of merchandise according to its classification in the tariff 
laws, and to state the rate of duty applicable. The price or 
value stated in the consular or pro forma invoice needs to be 
raised or lowered in the entry blank so as to disclose the true 
wholesale market value of the wares prevailing in the foreign 
country, not on the date of invoice, but on the day of departure 
of the vessel, or in case of shipments from inland countries 
the day they crossed the frontier. To this wholesale market 
value are added cost items such as packing charges, the dutiable 
value being the wholesale market value of the wares packed 
ready for shipment. 

The entr}' blank is accompanied by an importer's declaration 
and oath, the form of which is different for purchased wares 
than for goods that are received on consignment. In the offi- 
cial "Customs Regulations of the United States" issued by the 
Treasury Department, Division of Customs, under the chapter 
heading "Invoices, Entry and Assessment of Duties" may be 
found a detailed list of many customs forms classed according 
to the various kinds of entry that were enumerated above. 

Custom House Brokers and Shipping Documents 

The entry of imports requires so much technical information 
and such an intimate knowledge of custom house practice that 
it has become a business or profession for many "custom house 
brokers." These men are licensed by the collector of customs 
in the district in which they operate. They act as agents for 
importers in the clearance of imports through the custom house. 
They attend to the necessary formalities, advise the importer 
as to estimating import duties, pay the duties and turn over the 
delivery order which they receive from the Port Collector to 
the importer, or to his truckman or forwarder. They similarly 
look after the part of the shipment held by the appraisers for 



158 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

examination and attend to final liquidation of the duties. Should 
the importer elect to place his merchandise into a bonded ware- 
house, his custom house broker will arrange this for him and 
see that they are cleared when the importer is ready to withdraw 
them. If the imported goods are ordered for direct shipment 
from the ocean port to an interior destination so as to avoid 
double handling, a custom house broker may be engaged by him 
to act as his forwarding agent. He will as such forward the 
goods to the interior point in bond in conformity with the re- 
quirements of the custom service. The goods are transferred 
to bonded railroad cars in bonded trucks or lighters, and are 
shipped under a special "carrier's manifest of mercJmndise in 
bond," the carriers assuming the responsibility of seeing that the 
imported merchandise will not be tampered with until word is 
received from the interior customs officer to the eflfect that all 
requirements of the customs service have been complied with. 

The fee paid to custom house brokers by importers usually 
ranges from $3 to $5 for each shipment. It is generally not 
based upon the value of separate shipments, for the amount of 
work required may be no greater for a valuable consignment 
than for one involving a small sum. 

Custom house brokers are also a factor in the operation and 
trafiic management of the steamship business, for they frequently 
attend to the entrance and clearance of vessels for their owners 
or agents. The master of a vessel when conforming to the 
customs requirements at the custom house is usually accom- 
panied by a custom house broker, and the customs documents 
required of steamship companies in entering or clearing vessels 
in the foreign trade are frequently made out for the company by 
a custom house broker with whom it has a standing arrange- 
ment. Instead of having their own customs clerks the traffic 
departments of a line may depend largely upon a broker to 
handle its entry and clearance papers. 

Should there be dissatisfaction with the appraisement de- 
cisions of the customs officers, appeals may be made to the Board 
of General Appraisers. Cases involving the rate or amount of 
duty or the application of the administrative provisions of the 
customs laws may also be appealed to this Board, and may be 
further appealed to the United States Court of Customs Ap- 



DOCUMENTS REQUIRED BY U. S. GOVERNMENT 159 

peals, and in rare cases to the United States Supreme Court.- 
These appeals from the customs officers are so technical that 
specialized lawyers known as "customs attorneys" are frequently 
engaged by dissatisfied importers. 

"See Carl W. Stern, "Importing with Special Reference to Customs 
Requirements." 



^^ 



-IZ? 



(ji?*"^^ 



CHAPTER X 



SHIPPING DOCUMENTS REQUIRED BY FOREIGN GOVERN- 
MENTS IN UNITED STATES EXPORT TRADE 

Besides the documents required by the carriers in their deal- 
ings with shippers or in the conduct of their freight transpor- 
tation services and those required by the United States Govern- 
ment, the requirements of foreign governments w^ith respect to 
shipping documents used in the American export trade are an 
important consideration to ocean carriers and exporters. 

The requirements of various countries with respect to ships' 
manifests have already been referred to, as also have those con- 
cerning bills of lading.^ The latter are of particular importance 
to exporters and ocean carriers shipping cargoes to the Latin- 
American countries and to Russia, Italy, France and Portuguese 
East Africa. The governments of many of these countries re- 
quire bills of lading to be certified by their consular officers, and 
some of them enforce consular regulations as to their contents, 
the making of corrections or erasures, or the issue of all copies 
in the same handwriting. In several instances cargoes may not 
be consigned to order. 

Consular Invoices 

In the same way that foreign shippers exporting cargoes to 
the United States are required to prepare consular invoices, so 
the governments of Bolivia, Brazil, Chile, Colombia, Costa Rica, 
Cuba, Ecuador, France, Guatemala, Haiti, Honduras, Mexico, 
Nicaragua, Panama, Portugal, Santo Domingo, and Venezuela 
require American exporters to prepare consular invoices, and 
shipments to the Philippine Islands from the United States are 
also subject to this requirement. Foreign regulations govern- 
ing consular invoices are by no means uniform. In some in- 
stances they apply to all cargoes and in others only to certain 

* Chapter VII. 

i6o 



DOCUMENTS REQUIRED BY FOREIGN GOVERNMENTS 161 

commodities, and they vary as to language requirements, num- 
ber of copies, form and contents. The Brazilian consular in- 



Via FACTURA <:ONSULAR BRAZILEIRA (BRAZILIAN CONSUUR INVOICE) 

D? 

Consulabo (5eral em flova ©orlt 

DE.CLAR.ACAO (DECLARATION) 

Decldr^mos solemnementf que somas txporladores ou carrfgadores 
W* iofemidy iedttrt tAat we art the exporien or ikippert 

<&t mrcadorioi mencionadas nesla Jactura cmtidas noi^^l^L—volumei 
of the mervhandw ipecifled in thit nnxxnee, amtaitud in tht pQeJngt9 

induades, a gual f txacla t verdadtira a todos os tfftitoi^ 
indicated, vihicH is in a// respects true and exad^ 

undo essas mercadarias distinadas ao porta d^ '^^° ^' Jantt ro 
/Ati merchandise tetTjg destined to the ferrt of 



do Brazil e consignadai aos Snrs 

Braat and tansigned to Messrs Bias Bass i. Ca. 



Of Rio de Janeiro j^^^ York__de^J}illIl de /p W 



.yigenU da Exportitdor 

Agent of Exporter 



Nome e nacionalidade do navio & ^I' l^ 

piame and-Juititmattty of sailing vessel 

NoTtte e nacumalidadf do navio a vapor Qaaee j ^me-j -f ., 

t^ame and nationality of steamer 

Porto do embarque da mercadoria N ^g Ynrif 

I^/rt of shipment oj the merchandise 

Porto do deslino da mt^rnifiyrin Rio de .Tanai m 

Port of destination of the merchandise 

Porto do deslino da mormdnrin rnm opfOO parcL. 

Jbrt of destinaiicn of the merchandise Tvith option for 

Porta do deslino da mi^rnil/yrin rm transilo para^ 

fMofdestiTiation of the merchandise in transit for 

Valor total da /actura inclusive frele e despezas approximadas jf X. 397. 55 
Total value of the invoice inclusive of approximate freight and charges 

Frete e despezas approximadas ,g 4f..50 _____„__„ 

Approximate freight and shipping charges 



Agio da moeda do pais de procedenda^ 
^£xchange of the eottntry whence exported 



OeSERVACOEB DO CONSUL 



VL&TO. Coosniado Qeral dos E. U. do Brasil. 

fifovti York... . ,d* . .1 ... rffjy— . 

P/^tf $1.65 



Form 49A. — Brazilian Consular Invoice 

voice reproduced in Forms 49a and 49b contains the name and 
nationality of the vessel, names of the ports of export and des- 



162 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

tination, total value of all the merchandise listed in the invoice 
inclusive of approximate freight and charges, a separate state- 
ment of approximate freight and charges, the exchange of the 
country whence exported, a description of the merchandise, its 
marks and numbers, quantity and description of packages, de- 
scription of contents, gross and net v^^eights in kilos, other units 
of the Brazilian tariff, the value of each article, the country 
of origin, observations and certification of the Brazilian con- 
sular offices, and a certification by the shipper that he is the 
exporter of the merchandise listed in the invoice, that the state- 
ments contained in the invoice are true and exact and that the 
shipment is destined to a named Brazilian port and is consigned 
to a designated consignee. 

In arranging the consular invoice as well as other consular 
documents required by some foreign countries, care needs to be 
taken in the exact information called for. A distinction is, for 
example, sometimes made in foreign consular regulations be- 
tween "gross," "net," and "legal" weight. Gross weight when 
such distinction is made is the entire weight of the package, the 
container as well as its contents. Net weight on the contrary 
may be either the weight of the merchandise in its original 
package without, however, including the weight of the out- 
side shipping container; or it may be merely the weight 
of the merchandise without including either its original cover- 
ing or the shipping case. In Mexico where this distinction is 
made the term "net" weight refers to the weight of the mer- 
chandise without any covering whatever; while its weight in its 
original covering, which may be a box, bottle, paper wrapping 
or other inside protection — but without including the shipping 
case — is known as its "legal" weight. Whenever the terms net 
or legal weight are used in consular invoices it is necessary to 
ascertain their exact meaning. 

Certificates of Origin 

Various foreign countries require the exporter to prepare a 
"certificate of origin." Each of the following countries re- 
quires this consular document either for all exports shipped to 
it or only for certain commodities: Argentina, France, French 
East Africa, Italy, Japan, Paraguay, Portugal, Serbia, Russia, 



DOCUMENTS REQUIRED BY FOREIGN GOVERNMENTS 163 





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164 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Spain and Uruguay. Countries requiring a consular invoice 
usually do not also require a certificate of origin because the 
former usually indicates the origin of the merchandise, but 
various countries include both documents in their consular 
regulations. 

As in case of consular invoices certificates of origin are not 
uniform as to form, contents, number of copies, etc. The Ar- 
gentine certificate reproduced in Form 50 calls for a listing of 
the names of the vessel and captain, the vessel's flag, the num- 
ber of the bill of lading which is also certified by an Argentine 
consular officer, the shipping points, the marks, numbers, quan- 
tities and class of the packages, class of merchandise, quantity 
in weight or size and the country of origin. Three copies pre- 
pared in English need to be presented to the Argentine consular 
officer for his vise. The consul certifies that the shipper by 
means of this document has given proof that the merchandise 
contained in the packages referred to originated in the country 
mentioned in the column headed "country of origin of the mer- 
chandise." One copy is kept by the consul while the other copies 
are delivered to the ocean carrier by the shipper. 

The Argentine certificate of origin reproduced in Form 50 is 
prepared in Spanish, for it is the official form provided by Ar- 
gentine consular officers. Many exporters, however, make out 
the certificate on forms in which the declaration and descrip- 
tion of shipment are in English and only the consular certifica- 
tion at the bottom is printed in Spanish. These forms which 
are sold by a private firm in New York are acceptable to the 
Argentine officials.^ 

Certificates of origin have a direct bearing upon the import 
duties collected in countries where merchandise produced in 
the United States is entitled to reduced or preferential rates as 
compared with foreign merchandise subject to the maximum 
tariff rates. Several of the countries requiring this document 
have double tariff schedules under which the lower schedule 
applies to all or to certain specified articles of United States 
origin. In other countries, as Argentina and Paraguay, the 
certificate of origin is required for statistical purposes. 

Where the origin of merchandise is not officially shown in a 
consular invoice or certificate of origin and a country desires 

' Statement by Vice Consul of Argentina at Philadelphia. 



DOCUMENTS REQUIRED BY FOREIGN GOVERNMENTS 165 



Ej enpl ar 

Declaracion y certificado de origen de mercaderias 

EL. .. que fuscribe..^. de'profesifin ...Conor.cicMte dumiciliado e« Eiladelf ia — ^^.. declara^^ 
dc acueido con cl Dcnclo <h 31 Dicicmbrc dc 1001. que las Mercaderias cspecificadas a conlinuacion 

han sido embarcadas a bnrdo rfc/....itapor. americano _rSeriQca." Capiian John. Do.a.._«_ _: 

de ftanrfera ...to.eci.Cana scgun conocimieiilo N" .),..._ y proceden de tos puntos que se 

expresan a continuacivn : 



B U L T S 


design&ciOn de la mercaderia 


PESO 


PAIS DE ORIQEN 


MARCA 


N.M 


JANTiDAD 


CLASe 


KlUOS 


MERCADERIAS 


_F»C,5 


. 1--6P. 


-....60_ 


c&itts 


Spmbf^rpa 


_100 


Estjidos Unidoft .. 








































































—■■- 



















































































PHiladelpKia, finero 1 "de 1 


919 












John Smith' 















Por..XA..jL...,.,^Vr»^>vtt-r . 























































































































^ 




































• 











, . 













N° i^l certificado....! . 

H° del conocimjento..! 



Filadelfia* 1 de...Ka«r.Q^. 



.</4/589L 



Cerlifico que r-OK- Senor_ J.Qhll..Sn)ith. „ ha _ comprobado par medio de..X& 

-preaente .„, _ que Ids inercaderias contcnidas en Ins.. 60 ... Oullos ci que se refieie la 

presenic dcdaraoidn s'i»t oiightariat dc tos paises menciona dos en la columntt corrcspondienle. 

^\^ De que doy (L 



it l» Republic* 
e tn f JlaiJslAa, 
A. 




^^■■1 



Form 50. — Argentine Certificate of Origin 



166 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

knowledge of Jts origin, it may require that the name of the 
country of origin be stamped on manufactured wareS; or that 
the words "made in United States of America" or similar in- 
dication of origin be shown on each shipping package. 

Commercial Invoices 

While a commercial invoice is regularly prepared by Ameri- 
can exporters as a private document to be attached to inter- 
national bills of exchange or drafts together with the bill of 
lading and a marine insurance policy or certificate, or to collect 
from the foreign purchaser in other ways ; and also to assist the 
purchaser in clearing his goods through the foreign customs 
house, it is in sorne^jzauntries. -subject to consular regulations. 
Thus the consular regulations of the Philippine Islands require 
it to contain a statement of the country of origin ; those of Porto 
Rico covering medicinal articles require a statement of their 
alcoholic contents; those of Jamaica require commercial invoices 
to contain the statement that "the cost of outer package is in- 
cluded in the cost of the goods"; those of Paraguay that two 
copies be certified by a consular officer; those of the Bahamas 
that they be signed by a responsible member or employee of the 
exporting firm. Some of the countries which require a consular 
invoice also prescribe the contents of commercial invoices and 
several of them require that they be certified by the consular 
officer. Various countries require certain items as to net and 
gross weight, etc., to be included. 

Non-Dumping or Value Certificates 

The commercial invoices covering exports to several of the 
British colonies are virtually non-dumping or value certificates 
as well as invoices. The consular regulations of Australia re- 
quire a statement of the domestic value of the exported products 
F.O.B. port of exportation at date of shipment and also of any 
discounts for cash that apply ; and the exporter is required to 
sign a statement to the effect that the invoice in addition tO' 
showing the price actually paid or to be paid also shows "in a 
separate column the actual price at the date of this declaration 
of equal quantities of identically similar goods to any purchaser 



DOCUMENTS REQUIRED BY FOREIGN GOVERNMENTS 167 

for home consumption," that no different invoice will be fur- 
nished to any one, and that there are no arrangements as to 
discounts, rebates, salary or compensation other than such as are 



CertlfieiJ- Invoices In dapHcAte are reqnired by Cn^toma Authorities io Canada before rteltv^ry oJ goods will be matlo 
to eonsiffuee. These Cerlifietl lavoii-cs should be sent direct to coosignte by Coveroment Mail, or may accompany ihd 
»hipmeTit if shipper desires, (II coasigoee desires copy o( Invoice for his owo 6i«s it should be executed by the ftbippef 
ia tripUcate.) 

Invoice of goods for export to Canada, sold by exporter prior fo shipment. 

(Ptac. and i.U)_K?W..Yorlt., iU\X_, lOj, 19l9_ 

i^,^^«i . Portable Ca soUna Enfiinea ; purchM«4 

j^ JohB_Joiiaa jH M_?!}j;r*?i.i_..f^''.'!'?_ 

from. 



J>Des 3iiiith &. Conpiny 



New York, U.S.A. 



to bf ihlTpfd ptr AMERICAN EXPRESS COMPANY 







QOANTITIEa AND DE3CBIPTI0S OF GOODS 


Fair nirk*t vtlu« 
u Gold for 


pt,'!b" 


K,r!rc.v.^* 


P.tl.tc. 






Ao,o>,n, 


yv 






- 






xy 


4 


portable Oasoline Engines 


$360 


»380 


»1,520 


Montreal 












1/4 












































































































, 













CERTIFICATE FORM M. 

It th« undersigned, do herehj/ certify as follows : __ 

0) That I ain the (c) ffi.anB.£?!r . exporter of the goods in the above lovolce mentioned or deicribcd) 

(2) That the said invoice is in all respects correct and true; 

(3) That the said invoice contains a true and full statement showing the price actually paid or to be ptdd for the Skid 
CDOds, the actual quantity thereof, and all charges thereon i 

(4) That the said invoice also erthititsthcfairmarket value of the said goods at the time acd place of their direct expoK 
tation to Canada and as whci sold at the same tine and place in like quantity and condiUon for hoxe consumption, in ths 

, principal markets of the country nhcnrc exported directly to Canada, ^.-ithout any discount or deduction for cash, or on account 
of any drawback or bounty, or on accouct of any royally actually payable thereon or payable thcrec'n when sold for home eoo» 
mmption b'-it tot payable when exported, or on account of the exportation thereof or fcr any special consideration whateveri 

(5) -That r.o different invoice of the goods mcctioned in said invoice has been or will be furnished to any one ; and 

(C) Tliat no arrangement or ucdcrstanding affecting the purchase price of the said goods has been or will be made of 
entered into between the said, exporter and purchaser dr by any one on behalf of either of thcirt, either by way of discount, 
rebate, salary, comp€iiS3tioD,'or in aoy n-xnner whatsoever other than is shown in the said invoice. 

D,t«i ft Netr York. this VPIJL. diy of iilZ 10li_ 



Form 51. — Canadian Invoice of Goods Sold by Exporter Prior to 

Shipment 

shown in the invoice. Similar, although not identical, require- 
ments apply to commercial invoices covering exports to New- 
Zealand and British South Africa; and Newfoundland requires 



168 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

the exporter to sign a statement before a notary to the effect 
that "this invoice is true and correct, and the prices charged 
are not less than the regular prices charged in the United States." 



Iov)icej In dnplicate should accompany the p>od» info Canada, nnJ a Copy be »cnt direct by mail 
to the consicope. 



Invoice of goods lor export to Canada shipped on consignment 
without sale by exporter. 

Oh) ~ 



, (n.ce md j.tt) New_.y.i?clu_ 

tiiTOlMef porta bl« (UaoUne Englna» ^ 

Jame? Saith .Jt...C9'»P«r>y of !!??.-IHJ!ji.J?j'.I'*il_ 

Jchn Jojies ^ .H!!n.t.r*.<».L. . C*!«!*»_ 



10 t» .hlppeJ ptr AWrSICAN EXPRESS COKPANY. 



\lu\» m4 MuaWr> 


ODAKTITIES AND DEKRIPTIOM Of 


=O0O, 


-^"i^ 


tt V.I.. M VM lot 


PftckAfts 


a 


A»™i 


r"j^\ " 








-5^ 


4 portabla C^aoliTid EnglnaB 


t360 


11,440 


■■' Monfreal 
















1/4 

































DECLARATIOS FORM N. 
(To b« attesicij to b<torc i BrItJib or otbcr C«iuiiL Nottry PabSc or other oindcl ntboHied lo hiaia^ttu Oiiki). 

I. (., 73!?.'19 Barri?. „, („ ^ll!.l°lh.l.ih!!ji.^ 

4d solemiily and truly ileclare aft follows: — 



Montreal 



of tbe goods shipped oa ooiuis:iim«st 



(1) That I am (c) mflim£fir_.fi£..Jfla»_5aiilL.&_Co* 

to (d) J?r?.n .Jpn«o tt — 

r^H«H« ^od described >□ the nbove io voice: 

(2) That tbe said invoice is a complete and true invoice of all tbe aaid goods iocladed Is this shipment 

(3) That the said goods are propeTly dtrcrbed in the said invoice. 

(4) That there is inclu<l-d and specified ia the s^id invoice the troe Tslne of all cartons, cases, c^atc^ toies 



rpeosea iocideat to plying the goods in condition packed ready (or 
(S) That none of the^d gix)ds have beea sold by or on bchalC of tha owner aforesaid to any per^n, firm 



rin^ of my kind, and all charges i 
abtpment to Canada. 

, t behalf of tha 

corporation in Canada.'' ', 

(6) 'That the said lirokt contiias a just an! fiithfnl valnaticn of snch goods at tJieir fair market value as sold for 
home consumption in the pdocip-il rurVels of the coantry whence the fame arc exported directly to Canada, and that such 
fair market value is the price at which the slid gooils ara freely offered for sale in like quactily and condition by me or 
by dealers therein to purchasers in said riMlccts in the onlinAry coarse of trade at the usoal credit, wilhoatany discount 
or dednct'cm for cash, or on acconnt of any drawback or bounty or on account of any royally actually payable thereon, 
or payable thereon when sold (or home consumption, but not payable whea exported, or on account of the exporuuoo 
thereof, or any special con si deration whatever. 

(7) That if the value for doty of any good-* as dated in this Invoice Is other than the valne thereof as above specified, 
•och v»Itie for duty hm. to the be*t cf ny koowl-ylifc and beUef. been fixed and detenaiocd under the authority ol Uff 
CvstotDS Act at the value sUtcd in fcfjd invoice; and « 

(8) That no diffen:nt iavcice or acconnt thereof has been or will be fnnushed to soy oat by fflt of oo By bchalL 

t>«cu,edat, _Jiew..Yc^xK,.y.S.A» 1 

this—.- — — .-dayof »— < . 191 I 

before tne — — — — — — I 



W ' Nas* «l partr MbKribinr to tbtt dMlkntlaa. (b) 

fkr Bane of tbe Km whea tbe Bbipaeiit U a^e by ■ Lm, or ko e< 



actabe* ot tbe tn 



Form 52. — Canadian Invoice of Goods Shipped on Consignment 



The Canadian Government has approved two forms of invoice, 
each with a non-dumping certificate. The Canadian certificate 
for merchandise sold by the exporter prior to shipment is re- 



DOCUMENTS REQUIRED BY FOREIGN GOVERNMENTS 169 

produced in Form 51, and the blank used when exports are 
shipped to Canada on consignment without sale by the exporter 
in Form 52. The former shows the actual selling to the Canadian 
purchaser and also the fair market value as sold for home con- 
sumption in the principal markets of the United States; and the 
latter only the fair market value as sold for home consumption. 
Any wares which are entitled to reduced import duties under 
the British preferential tariff must be invoiced and packed sepa- 
rately, and the certificate in such case contains a statement that 
they are bona fide produce or manufacture of the country of 
origin named in the invoice and are entitled to preferential 
treatment. 

The primary purpose of these certificates of value is to facili- 
tate the so-called "non-dumping clauses" contained in the tariff 
laws of these British colonies who desire to prevent the flood- 
ing of their markets with surplus foreign products at prices so 
low as to be detrimental to home industries. Imports into 
Canada invoiced at prices below their fair market value when 
sold for consumption in the exporting country are liable to a 
special '"dumping" import duty equal to the difference between 
the invoice price and their fair value for home consumption. 
This special duty is, however, not to exceed 15 per cent, ad- 
valorem and a tolerance of 5 per cent, is permitted in case of 
most products. Articles of a kind not produced in Canada, 
moreover, are exempted from the special import duty. 

Health Certificates and Special Consular Documents 

The requirement in the customs regulations of the United 
States with respect to export inspection certificates issued by 
the Bureau of Animal Industries, Department of Agriculture, 
in case of exported live animals and meat products, which were 
referred to in the preceding chapter, are in line with the con- 
sular regulations of a number of foreign countries which re- 
quire the presentation of such certificates when livestock and 
meat products are imported. Certificates of health issued by 
the Department of Agriculture or other authorities designated 
in the consular regulations certifying that seeds, grasses, plants, 
trees, etc., are free from plant illness are similarly required by 
various foreign governments. 



170 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Miscellaneous special certificates, labels, etc., are required in 
the consular regulations of some foreign countries. Salvador, 
for example, requires a flour quality certificate vised by the 
pure food authority of the Department of Agriculture; Santo 
Domingo, a cotton seed certificate in which the Department of 
Agriculture certifies that the shipment is free from plant diseases 
and insect pests ; and Panama, a certificate of analysis from a 
recognized chemist certifying that special or patented food prod- 
ucts or beverages shipped to Panama but unknown there are 
not injurious to health. Various foreign countries require the 
use of shipping labels indicating the substances contained in 
canned food products, or the name of the manufacturer, place 
of manufacture, statements as to mixture or imitation, or other 
items prescribed in their consular regulations. Before medicines 
may be imported into Italy, application for permission must be 
made to the Italian Ministry of the Interior. When shipping 
refined petroleum to Uruguay duplicate fire-test certificates, one 
of which is sworn to, must be furnished. 

Although many foreign countries require no special consular 
documents, sufficient has been stated to indicate that others en- 
force regulations equally or even more detailed than those applic- 
able to foreign products imported into the United States. When 
shipping to a foreign market it is invariably necessary to ex- 
amine its consular regulations, for their requirements as to 
shipping documents are not uniform. 

The special regulations enforced during the war, particularly 
by the belligerent and neutral countries of Europe, were the 
direct result of war emergency conditions and are omitted from 
this account because of their temporary character. 



CHAPTER XI 

SHIPPING DOCUMENTS USED IN OCEAN FREIGHT FOR- 
WARDING BUSINESS 



In the conduct of the freight forwarding business the usual 
shipping documents described in Chapters VII to X are re- 
quired, but in addition the freight-forwarding concerns, in their 
relations with the shippers for whom they forward cargoes, 
with the steamship lines, and with their foreign agents, require 
a number of special documents. The shipment of air brake 



St«9e9«9S9e9^ 




Sesese^esess 



Contract No>.... S 2?». 



FREIGHT CONTRACT. 



NEW YORK,. June 12 ^ 1919. 



Engaged freiglit to ?'.Lt?.?.Eoo LL_?5ala5d_. 

of ffelt?--8ta5..LJln«>.._. 

for account of ^*!Llar?*i?. A^J Byi^JLpO-: 



JVgenls of the 3/8 C8OTIC 



VM"3^itiSt 



..JZQQ..taaa..JLi.t^iixaiijS.}[aalilntiix.t- 



At'. iii^9^.per.Soo]^m^^ 



Should S\ 



t subject to corufiti>7n» ol Ad ol Concreii «o«> 
■ TOro.tJ Fib. IJ, 1191, and t« tinsi ol B.Il ol 

?iii Sao.r Hook br 6 P. M. of expected MJI/nc 

"coorriVl 7n f.Ttng Agcnti ncKrce to ihtt effect by nocn^of 



Sieameri fe»er*e »|hl ol i^kiog giain in excCM ol key ocl rCf^tCT 

BrokerageljC 



CALDVZLL k C0MPAS7. 

FREIGHT BROKERS 

8gd. Jamea F. Qnlth. 



Form 53. — Forwarder's Freight Contract 

machinery from Cleveland, Ohio, to Sheffield, England, de- 
scribed in this chapter, may be regarded as a typical ocean freight 
forwarder's transaction. The shipper's name, quantity of cargo, 
etc., specified in the accompanying shipping papers, are assumed, 
but the forms are those actually used by a large New York 
freight forwarder. 

The freight forwarder having been engaged by the Atlantic 
Air Brake Company to forward two hundred tons of air brake 

171 



172 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

machinery to Sheffield, England, the firststep taken by the for- 
warder was to engage the necessary ocean freight to Liverpool, 
England. The freight contract, shown in Form 53, which was 



«fLC*MO«»« {l'Sl)*<*0^ 






LfSEN KAItHA 




„ —■ ^a-i^^S^g,-*^"' 

To The Axerican Railway Association. 

Export Division, — General Operating Committee 
Eastern Railroads 
J41 Broadway, New York 
Centlemen:- 

Railroad shipping permit is hereby requested covering movement of 

"^followIng export Irelght, consigned to Atlantic Air. Brake. .Co., «_ ■» 

.««,<..,»B»»^.^?/?_£5J**«il. *. Co.., _60 Broad, Street,,JIe» Tork^lty-. 

Shipper A tlantte Air Brake Co.. 

Point d shipment Cleveland, Ohio. 

Located on tracks ol '•' ^* ^* "• 8* 

Commodity" •**' » '■^'e Materiel, 

QuanUty SeTen Carloads, 

Port ol Exportation •** Tcrk, 

Route (see note) S.T.C.K.a.. 

Foreign DesUnaUon liTerpecl, 

For Steamship CMRIC 

Loading Juno 27th, 1919. 

U. S. Federal License No BAC-63 

Steamship Contract No. 3276 

Yours truly, 

HOULDER, WEIR & BOYD, Inc. 

NOTC^-Rtutttil Sublttlj, rcvtsttn Uo«uu «l embtrro e> oihef ecodlilflns. 



Form 54. — General Operating Committee Shipping Authority 

made out for account of the Atlantic Air Brake Company, may 
be compared with the ocean carrier's freight contract, repro- 
duced in Form 1 of Chapter VII. The specified brokerage of 
1 per cent, is paid by the White Star Line to the freight for- 



DOCUMENTS IN OCEAN FORWARDING BUSINESS 173 

warder who in th is instance is acting as a freight broker. The 
freight contract is made out In triphcate, one copy going to the 
shipper or party for whom the freight is engaged, and two to 
the steamship company, which retains one of these copies and 
after signing the others returns it to the freight forwarder. 

The shipment being made while export shipments by rail were 
still under war control, the second step taken by the forwarder 
was to make application to the General Operating Committee 
of the Eastern Railroads for the so-called "G.O.C. autliority" 
to bring the air brake material to the seaboard. This applica- 
tion was made with the approval of the steamship company with 
whom freight was engaged, and it was made on a steamship 
company form, one copy of which was kept by the forwarder 
and another by the steamship company, and one copy of which 
was sent to the General Operating Committee for grant of 
authority (see Form 54). When the G. O. C. authority was 
received it was sent to the Atlantic Air Brake Company at 
point of origin as authority for the railroad agent in Cleveland 
to accept the shipment. 

Shipping Instructions 

The entire two hundred tons or seven carloads of air brake 
material were not shipped from Cleveland at one time. As 
commonly occurs, one carload shipment of thirty cases was 
made first, the other carloads following later. The remaining 
forwarding documents herein reproduced, therefore, do not list 
the entire shipment of two hundred tons, but only the thirty 
cases comprising the first shipment. When the remaining ship- 
ments were made they were handled in precisely the same way. 

Shortly after the thirty cases of air brake compressors, com- 
prising the first part of the shipment for which freight was 
engaged, was started from Cleveland, the shipper gave his ship- 
ping instructions to the ocean freight forwarder on the blank 
reproduced in Form 55. These instructions directed the for- 
warder to make out the bill of lading in the name of the shipper 
and to consign the shipment to the order of the shipper. They 
also gave the name and address of the concern in Sheffield which 
is to be notified of the shipment, but this concern will not be 
able to obtain possession of the air brake compressors until it 



174 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



has satisfied the requirements of the draft to which the order 
bill of lading will be attached. The value of the compressors 
for custom house clearance is stated so that the forwarder will 



l>M M)) C. B. 9'ia 



TaUplMR* WIO Bnmi 



E>ubU>U<l ieS7 



ftefer«BC« H%— 



SAN FRANCISCO. CAt. 



CALDWELL 8c COMPANY 

FOREIGN FREIGHT CONTRACTORS 

Custom Hoas« Broken. Marine Inmraftce. 

50 BROAD STREET 

Now York 



FROM laro-JiliXJ i^nii^^ ' 



■ t6 and rAOM aulVant* or ths 



DATE— .J"n«-18u.J919_,^ 



W.iUiixJ «" J»ne. 17,19X9</.n.u*n«fo«fc. ontlfK^ in v«» cm 1 tt mlDni n. n. Bill »/ Uj!f>l '/ "^ JiViSM — 



L A 

T3089"* 
— CoBp*ny^- 
SHSFFIStD 
Jl/3(5 



es Air Br*ksCompre68o rs 



2302B#' "ZOIOBii 



each, 



WHiai PIEASI fORWASD TO DBIINATKW IN ACCOROANK MTM THE fOUOWJto WSTRtCTIONS 

MJte Bai ol Udi.« inAeMmtol AUMX.tifl-AtP..Jxaltfi.-CQ.. 

Conrip. «. Ae «dero(. AtUnti.5.JUX.-BrAlt«_Ca.,.^._: 

D«»»uon .- 6»»ef f ^«ia....I»R........... ,..._._ ..,, .__^_ ,_,_ 

VJne for CiBtoin Hoim Otaiuicc m $ 1 8 , 6QQ j 

Iniure iSipmmt Iw $ Ifi . M.P t md ehvge to- 



• II Icftthw (hipped auc Bumber of iquore feel. 

...A££SS;i.ic^ilT"^^.er'e?;,. 



Shall we cover Iiuuranco agaitut breakage ? r.«_. 

OcMD fteigt.1 to be ch«g«l lo AtlanllcAl T Br «, lf Co 



Atlftntlo Air Broke Co . 



Through Freight and all Charge* to be charged to. 

Frdgb 10 New York lo be tkueti to Erapal d t ) y Atl ft nt i.e-Aix„Jrj>k«_Ci3 

Cuuje or Ueliier»ge to «ie»i«r to be ehu«ed to AllAnt4fi_Alr--£.t93f«_C_9_. — 

• • V * 

Regular forwarding charge*, are for account of 

Cutfom house and consular fees arc to be charged to . , 9 ft. ff • 

Amount of thipper* C. O. D. if any callected agaiiut delivery $_ Eon«A_ 

M,i] a nag . piU oL Lading to ihippcn and 1 CQ>4 ftl_at Billj of Lading to consignee — 

If ihipment doei not anive at leaboaid hy 3 unH ZSth, 1 adviie m by £ 

Special lemarlu ii aiiy -— . ' 



i thai we can trace it. 



laiise be refuied or relumed, agree to pay any and ali^ 
cd unleai insured. 



The above is a coned declaration and should the shiptOCTil for f 

charges incurred. Qaim for loM oi damage lo packages or conlenis 

"This transaction is mo'lc uo'*ct rer^esentatioo by the undersigned that thoe is not involved in connection therewith any trading, 

directly or indirectly, with. to. irom, for. or on account. bcKalf, or benefil oi any enemy or ally of enemy of the United States oi any 

hansaclion violative o( the Tradlng-wilh-rhe-Elncmy Act of tha United StaWa." 



Youn Iruly- 



Seod all shipments in our care and send tis Railroad Bills of Lading showing deafly marks and numbers of packages. 
\Wien in carload lots, have "Lighterage Free" appear on same 



Form 55. — Forw.\ri)Er's Shipping Instructions 

be able to correctly prepare the export declaration. The amount 
of insurance desired is stated and the forwarder is instructed 
to charge this to the shipper. The forwarder is also informed 
that the ocean freight, the through freight and all charges to 



DOCUMENTS IN OCEAN FORWARDING BUSINESS 175 

destination, the cartage or lighterage to the steamer, the for- 
warding charges and the custom house fees should be charged 
to the shipper and that freight to New York has been prepaid 
by tlie shipper. The shipper calls for three negotiable copies of 
the bill of lading and directs that two non-negotiable copies be 
sent to the consignee. The shipping instructions were given 
June 18th, and the forwarder is instructed to advise the shipper 
by wire if the shipment does not arrive at the seaboard by June 
28th, so as to enable the shipper to trace it in time to meet the 
expected loading on the 27th and the expected sailing of the 
steamer on the 30th. 

The shipper having shipped the air brake compressors to the 
seaboard in the care of the forwarder, encloses the railroad bill 
of lading with the shipping instructions so as to enable the ocean 
forwarder to take possession of the compressors when they 
arrive at New York. 

Arrival Notice, Shipping Permit and Customs Declaration 

The forwarder upon receipt of the shipping instructions pro- 
ceeds to prepare the necessary exporter's declaration to satisfy 
the requirements of the United States Customs House, The 
various copies of this customs document are handled as was 
described in connection with Form 45 of Chapter IX, for the 
customs regulations apply whether the shipper makes his ship- 
ment direct or through an ocean freight forwarder. The for- 
warder now also obtains the usual shipping permit from the 
steamship company on presentation of the custom's clearance 
and evidence that freight has been engaged. 

When the shipment of air brake compressors arrives at the 
seaboard the forwarder receives the usual notice of arrival from 
the railroad, after which upon presentation of the railroad bill 
of lading the forwarder obtains possession of them. 

Lighterage or Trucking Instructions 

Export cargoes arriving at New York are either to be lightered 
or trucked. As the shipment of air brake compressors in ques- 
tion was entitled to free railroad lighterage the forwarder issued 
lighterage ^'^stru^ions ,toJ:he railroad company, using the stand- 



176 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



ard blank reproduced in Form 56. The railroad company is 
instructed to deliver the thirty cases of air brake material listed 
by mark, number, description and weight to the steamer Cedric 



raalCIISM.4l>lt 



Metin_ 



CALDWELL & COMPANY 

BO BROAD STREET 

NEW YORK CITY JUOO 8«t»». IW' 

D»te 



W/B 4nBM.. 



Bww-YCTk catrtral Railroad Co. 
Produce Exohajige, N. Y.C. 



Please deliver the following to steamer CUTIRtC 

Pier 69, Horth RlTHrpn or before Juna gRth, 1019. 

Cr LV 30597. „ 60th St. pro._23*____ arrived June 23rd. 



MARKS 


NUMBER 


PACKAGES a CONTENTS 


WBIOHT 


L A 








13039. 








COMPAHY, 


#1/30 


Thirty caeee (30) 




Sheffield, 




Air Brake Material. 


23 .029# 



Signed dock receipt must be sent to tha imdcrsigned immediately after delxvery, cr g:oA 
may go forwaid at your liik and expenw, 

Yoiin truly, 

CALDWfeU. A COMPANY 

Per _ 



Form 56. — Forwarder's Lighterage Instructions 
at Pier 59, North River, on or before June 28th. The light- 
erage instructions also show the railroad car number, the location 
of the car, the number of the railroad bill of ladin^-, the date 
when the car arrived, the number of the forwarder's waybill. 



DOCUMENTS IN OCEAN FORWARDING BUSINESS 177 

and a request that the dock receipt which the railroad will receive 
from the steamship company be sent to the forwarder imme- 
diately after delivery. 



No. 13206 



TRUCKING INSTRUCTIONS 



Way BUL<0684_ 



CALDWELL & COMPANY 



New Ynrl.. June 24, 1919. 



J f.hn F. HlcVey, (Truckman) 



Deliver to S/S. 
On or before. 



^■ina gflt.h. 1919. 



Loading at Pier_ ,59, North RlTP.r, , 

F,omy»Ma« K 60th St. c^r LV 3059? 



Expreis-Rectipl AlU^ed 




1 


Frdgia " . '* 






StoHge 






Ubot - 




— 


Caiuse®" 










T~i«l <^ K 




-J 





Ar^,»< J""« 23- 



Marki and Numbers 



Packftgci uid Contents 



L A 

13069, 

Company, 

Sheffield, 

#1/30 



Thirty (30) Caaae Air Brak« laterlsl 



23«029# 



TRUCKMENS report and charges must be made on our blue slip 
immediately upori delivery of goods and on the return of this and 
"all necessary receipts. EMPLOYEES are requested to see that 
all charges incurred are paid. 



Ordered out hy John MoDermott 



Remarks, . 



Date Delivered- 
By Truck 

Psnn IIL tS.1B.ll R R A 



Traetou 



Form 57. — Forwarder's Trucking Instructions 



Three copies of these lighterage instructions are made up. 
One copy goes to the railroad company for execution ; another 
is attached to the correspondence and papers of the forwarder 



178 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

covering the shipment ; and a third copy is given to the for- 
warder's transportation department, which is to follow up the 
shipment to see that delivery is made in permit time. 

Had it been necessary to effect delivery to the steamer by 
truck, the forwarder v/ould have issued trucking instructions to 
a truckman on a blank such as is shown in Form 57. The form 
of this paper is similar to that of the lighterage instruction blank 
which was actually used in connection with the shipment of air 
brake compressors, but differs in that it contains a space in 
which the truckman would have inserted the express and cart- 
age charge which would have been incurred had the delivery 
not been effected by lighter. 

Trucking instructions are also made up in triplicate. One 
copy is attached to the papers and correspondence covering 
the shipment, and two copies are given to the truckman, who 
retains one copy and returns the other to the forwarder with 
his charges noted thereon after delivery has been made. 

Bills of Lading 

When delivery has been effected to the outgoing steamer either 
by lighter or by truck the railroad company or the truckman, as 
the case may be, obtains from the receiving clerk of the steamer 
a dock receipt such as was reproduced in Form 5 of Chapter 
VII. The forwarder is then in a position to prepare the ocean 
bills of lading, which are returned to tlie steamship company 
for signature. The number of copies to be prepared and their 
contents has been described in Chapter VII. A case of a large 
shipment which does not need to be combined with others by the 
forwarder in order to overcome the effect of the minimum bills 
of lading issued by some steamship lines, and which is destined 
to a port reached by the line, the ocean bill of lading obtained 
from the steamship company may be sent to the shipper. In 
many instances, however, the forwarder issues his own for- 
warder's bill of lading to the shipper. 

This was done in case of the shipment of air brake material 
which was destined to Sheffield, an inland point not reached by 
the steamship line. The forwarder's bill of lading reproduced 
in Form 58a, it will be noted, carries the shipment through 
Liverpool to Sheffield. In accordance with the exporter's ship- 



DOCUMENTS IN OCEAN FORWARDING BUSINESS 179 

ping instructions it is made to order of the shipper, the for- 
warder affirming to three negotiable copies, "one of which be- 
ing accompHshed the others to stand void." It names the con- 



EXPORT BILL OF LADING 

ESTABLISHED 1857 




ANO CUSTOM M0USf^l»OK8S5. MARfNE INSURANCE 
SiESBcLpSfli so BROAD STREET. NEW YORK "iSSiSB^ 

tU Sm. ia4w An*M 

o=T«o.f — '='"^'' .iiutewra 



RECEIVED. 



LAS PALMAS-USVONTCNERirrC 



ibject to tbe ClAXsiGcmtioiu aad Tcnfft in effect oo the date of Une of thl* OriglDtl 

ct New Vort, N. Y., from ATUU7TIC AIR BRAKE CO. 

properly descnbe-l below, 



SEN MAISHA 
40584 



■ppttreot good order, 
ligoed onil d^sfaoed aod to be CArried M itid^lcnted below. 
To l/e delivered to the good Steemer C£DRIp 



(scheduled to ■»;! Jvng 50. 1919. ^„^ 



pt u noted (coBteats And coodiiloiu ol coatcota of pftdugcs Dokoonn), lOArkcd. 

boQod fa. LIVERPOOL. 



„] or the oezt •TAflaUe StcAmer (or Uiir| Asd to bt 



delivered in like order end coodlii 
liberty to call at any port or pnrts 
cotreignee's aasigriB, or to another 



SKETTIFI.n -EKr.T.ATin. 



r thereto aa tteamer may aafely get, with 



aatomary 

le to deati .... 

of the property, of the freight tbeieon, at Uic agreed rite, Utited ijUte* gold currcncj, with all other etiaigrt asd arcnee, withcot abj AUoHttw* 
of crcdil' or diaccoct. 

CONSIGNED vtno , R D - E R 



^KTICl^ES: 



THIRTY (30) BOXES AIR BRAKE MATERIAL. 



f- 



K^miffn^ 



L A 

13039, 
COMPAITY, 

SKEFFIELD , 



#1/30 



83 .029^ 






rr^' 



t- 



APPLY >ott DELIVER? to THOMf SOW . KlhG^ CO.. 35 LBADEH^^y ST. LI\'£RPOOL, EPG^ 
d .t*. -a ^J^TiFY LAFGSTAIT . AlREY & CO.. S^^^fe-.L ST, SKErF;ELD„ ERG> 



CALDWELL ft CO ouacd 

w*-n ind Aroaffi whcM 600) 6t^'7«r wJI b« nut* 

CHARGES ( yP-EPAlD ) 



W^ 



-.£aiFTTIF.LP,Ri|a. tf 



,-f\''^ 



srJT 



MARINE INSURANCF, & WAR RISK ARRAMGED THROUOlp'QfiDWii: 



L ft COH PAKY. 



Aii Risks of fira or Flood wliil» Sasds are on ihe Deck, to b» Imni^j^ilftlilpptrt. 



ov«r ell or ■ny portion of said' roate to desiiaatlno. aod u to mtch 

-._.„ ._ t» ptrionned hereunder shall bo subject to all the conditions. 

wbether prioled or written, herein conulned, inelndinii cm»j;tiei>» 00 b«a hereot. uid which ire agreed U hr the shipper aod accepted (or UmaeU 

It is stipulated that an? claim, demand or question, arising out of this shipment and Bill ct lAdlof ihall l>e determined according to the law ol 

AND FINALLV. in aoceptiiiK this Bill of Lading, the Shipper. Owilar and Consignee 0* the goods and the Holder of the Bfll of LadlngagrM 
to fce twuod by all its stipulations, exceptjoDS and condjuona whether written <jr printed aa fully «a If they wsr« all signed by such Shipper, Owocb 

Consignee or Holder. 

IN WITNESS WHEREOF. CALOWELL a CO., hath affinaaJ.toT.IjRiiB BlOa ft lading, an of (bis tenot and data, one of wfclok 

being accomplisbed to othera to atand void. CALDWELL 6c CO. 



roiiK. N. Y„. 



Un> 



«^ 



Form 58A. — Forwarder's Bill of Lading 



signee merely so that the agent of the forwarder may notify 
him; and it also contains the name of the agent at Liverpool to 
whom application should be made for delivery. It is, however, 
an order bill of lading which the exporter will attach to a draft 



180 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

in order to obtain payment for his air brake compressors, and 
which needs to be presented with proper endorsement before 
the forwarder's agent will deliver them to the consignee. 



ENDORSEMENTS. 



CONDITIONS 



IT n WCTTUALtT A<Jft7tO Ad th« sM^ ikaK te^itfefrt* l» tin wM% ot wlthMrt plton; *t*6 to ilnTite far tma omt M Mvfftf tif* drttvptmx Att (M t>rft«« 
•feitl ht-wt -libfny v> cnMt |oM* If IJcfcur* to Md (rota (h« *tnf ■! tba nik o( (h e ownen of ib« r>«<)«; *(ul tf> «Mc 1^ iftip •fcx 11 p«1 into ■ part of rcfnfc, or t» pr«- 
»<nlfd from any t»oie from pf«efT<Iln|lii UiQ otdinanr -coorx of htr vnyasc ** trinih.p th« food* In theif dollo.lion by ftfl* otlicr •tcMwliip; Uu Ul« U/rWf 4)tiU n« 
W I'rtk lof Iml or dlnUct McuiafiMt by hre frOtn anf «ai»r Of «rhc«xio«*cr oervrinii: by barrmtr* of tht mulrr or eiem; hf robb«ri on bnd or (ri; br trrrit and r*-' 
•tmni o( pHrcM. rulers ot lKOp'<'- ''"'•• "'nlMi or itatiM(t of labor; by ciplBilon, burMing of bolkra. brrakase o( thifu. or tar latenl defect in hall, oijehintrr or 
■npurteoancf*. miif.»jaiit«, trror In iBdfinCTit anjr att, neflleel, or detaull «b«ti*>tYer «( pilol*, tnuKri or crtw In tfie managewnl or tiavigatton of TT>e ahip, coilUlod* and 
all and tvtry other danfet and acckdcnl* of (Ic teaa, rWcn and canali a»d of naviRiiion of ■balioevej' nttur« br kind ruccptcd. «f un*<awL>r1h(fivai of ih* thlc r«cn 
nitlirs at time ei ^biptncnl or itiling on Ibe *Oya(e. protldrd Ike owner) Jtavr eierciiM d»« dllifrnce le make the vejicl *etf>t>r\hj, by heaUn|. decay, patrefaclion, ruit. 
•wtat, (hafatr, »ernim. mildrw. rain, »pfay. chanfe ol cbaract<r. driinaK^. UaVaj*. breakace. or atty lou or dBaikft atninj from ih« nnur* of the fo«4a or the iaiuffl. 
eJMncy ft packafttj ror lor land daini(e or dinacc by coaJ du*t or for rcaaonabk ocar ajid tear, or ky contaci with ot^cr cargo or »ca«aicr, nor (or Uia obliioaiiOA, 

lonealion of her voys|t«; ard thai ihe earner tball not be concluded ai to crirrccineM oMba. ■(ajc«ienti herein, at weight, mvaiut*. quaotityt quatit ■, conltnti and TlTut, 
Fin 1. «xptni« and lonei I7 ddenllon ol ibip or carco cautrd by irtarrett mAikinf. of by iBoomplete Of incnrtect dcJcrHMion .oi centanU W ««i|ni or tny gtbar p*f« 
•fculBri required by aulhcriiiea a( port* of dl»charre wpoti eiiber the package or Dill of Lading ihall be borne by the owner of the cooda. 

IT IS AU^O MUTUALLY AGREED ibM ihia •£^ipT»ui ii l»Wect (» all A. lermt and -proriiion. of and all the e^mpdofii from Kabilitr eoiiMtn«J la itt Art of 
CongXM ol Ihc UnNpd Slalta. ayyoreJ'oft the tjib day of February. 1I91. <a»d rntJtled an Act reUtin^ lo Navnalion ol V^e^^e l^ ^ eft J ^ ■ 



I IT 19 ALSO MUTUALLY AGREED that tti« 
Srction 4:81 ot the Reviam Stituicj ot tbe United 

rhertof it ()«an mj .W» i* inierrd I* the bill of 

1. AL50. (hat 5*ipp«w iWI b* liable (or any le«» 
»r dim»fe te Ship o» Cargo caused bv Inflanmable 

diirloiare ol IbelirBsnirt, vWiibrr inch SbipfXf he 



■ Afer 









corrc«' ard'"in»atocVenl'"inVrfcIn(i."nowberiJf or tA- 

noTi-emtntliancet with Cuilffhi HenoirenwftU •III bt 

' a"*AtSO^ i"H»t in caae the Ship ihall bt pfe»«ile4 
fmm ftMh.ng her de.llnnlwi by Quara-tiOc, the 
CatHw may ducha'tc <he «ood» Into an/ D'jwt 
or UiareflfK •od »ort dlicharrt »hall be d-«iitd a 

P^*e»'tbtfHry iMvrrcd wt ilM gowU aball b« • titn 

M- Al^Oi thmW Ship ina» «o*mVi*(^A»<bar!fe' 
tminedMtely «n arrival and dwh-rne contin>i(.qf Pr. 
(hi Collrctof of Ihc Pon being hereby authonied (o 
gr»nl a general order for dncharae immediatefy n* 
arrivar. ir.A H the fcoiit be no? lahrn from the 
•h.p by Iht ConwiBC d'/fClly Ihey eom« to hand in 
ducT>aTg{>^ the thip the Male' ot Ship • Ajftit to he 
at iiberiy to enter and Ufd lh( tooda. or put ikem 
Into cttat or tu>TK U ««iver'a tiw- and eipnwr. and 

ut^lll the HJinvni «f at) aoat* acd charge*. «» in- 

*itSt4ihtr-kt*(H tfri* VWM «fec jtood* W< W ttf« 
■nr««««Uuii«|».w dcUy ift lkc:|««da and itn ovnv 

ATTENTION 

' '"Vn, oeoeA nf ferwnt A\mXft «t1 of vitriol, u 



. ALSO, that full freight li na/able en damaged 
«bai>unJ^ goodi; but no freight 11 i.ur on any in- 

«t 'r" d^Hni^ihr'tC '**'"'* ^^ "*" ''*""P'""' 

, "'a LSO.'thal .('onVlS^ of the irood* at de*(ina. 

t^^r *aM 'bright and^harget, cI'^MrH » Coi^Mny 



fl AL50. It h diftirKiry itnd;ntood 'hot Ca'dwt<t 

are in no way reeponatKIc for (^e r^tl ,ird delaulti 
«t tbje K*rr\tTt la vhom Ikr^ tntmat the good^. 

ALr.O, that merrhandl.- cn wHarl awaitlnit 
•blr«e«l or deli»(>y be *tjhifp<r'i r..W d W» .i^ 

. 10 Al.Sti. (hit tbi. bill of lading. >ftl'- endonw^. 
I>e iivrn up 10 the Ac'r.t u( Caidwtit 6 Coopaoy m 

".',?0, ih»; iV; Frfirtt, prepaid- win «H tn. 
t^iuital. gooda Ic-it or nM 14»C ^ ', 

t* AC^O. fhat'fretjibi rayabte «n vrlgtit (a to be 
p«.d on B-eit wr.dhi lanjlcd Vrbm Oc^an S<e«D>Wp,' 



;;..';/ r 



lorward them by 



Carrier U ny I 
T6aa^Mion of ftny a 



14. ALSO, that ibe ProperlT Covered br IKU bllt 
of t^in'g ii lubject to ^1 tne conditiOnk tiprcsMd in 
the regular (orma of bill* of lading In »•« by lb« 

espreilly provided fo^ by the cliui'i hef»:n. 

ij, AT.SO. Ut»t gooda May l« Li ed or eoooefed. 
If t)ec4H^7> 4t txptnK «i owDtra— <«U to leHow 



«4.<'Cdedi'-wM«h«i«y be re^nlred-to U f< 
»T a-II. SteamerNr other-iMT to l..e!r d-i 
from tba Ship'a Port of 0>*cha/T«. thalL be 



Aip anfl nwncfv and Caidwc-i; S CompMny m'dfr Ihii 
liTl of lading- to ccaac •pon dcli*crf ol (be ffod<l%' 

17. Fretgtit a>4if eKarv«i 'payable br COnilgRCQ to 
>« paid at niTicnt rate of cKclun^. 

of eloddg erf Mrt ef dei'tnt' 

or cnrrrng (0 dctUnatloa «i|l 



tlon by ler, right 
rd Kcei«Vle- po 
diacha'img with 
be at rlak and ex 

f*.' ■VARIPreHISRS: Cald-ell ft Comfian^ wnt 
c InivrUM H 9nd<ruJ(ca <^ 



rter or trm er^pl*! 



be re«i 

tKetn for 

ANfl FINAtl.V. IN Mceprin 
th- holder of the bDI of ladiVg. 

all aigned hf awcb tfrippcr. 
'holder. 

g Hgent*. aaeh cariHer C 



[ tb« r^oda, 



frooi tuch Mrrl«f 

jr SHIPPERS IS CALLED TO THE ACT OP CONGRESS OF iS|i. 

niadrttl ttine. Inflaatwable aU^cTie*, .»f |unpni>rder hi • ahip or venae) uWftg cario (or dt< 
■riiiina c'preitinfl the eha'tcit' diikKb tocrdiandiaa lo the naattr, msU* oActf ar pcrMd 



anj 



nploytd. 

perMna 60 ("reltbt. 
vUaiffi ei lb* Udlflf- 



Form s8b. — Back of Forwarder's Bill of Lading 

An examination of the conditions stated in Form 58b shows 
that the ocean forwarder's bill of lading embodies the usual 
clauses defining the liability of the steamship company, and also 
that the property covered by it is "subject to all the conditions 



DOCUMENTS IN OCEAN FORWARDING BUSINESS 181 

expressed in the regular forms of bills of lading in use by the 
steamship companies at time of shipment, and to all local rules 
and regulations at port of destination not expressly provided 
for by the clauses herein." Liability for loss or damage due to 
the acts of the steamship company continue to be subject to the 
terms of the ocean carrier's bill of lading and such federal 
statutes as are applicable, and remains vested in the ocean car- 
rier. The forwarder's bill of lading provides that "it is dis- 
tinctly understood that Caldwell and Company (the forwarders) 
are only the agents of shippers and are in no way responsible 
for the acts and defaults of the carriers to whom they entrust 
the goods." Many, although not all banks, however, accept the 
bills of lading issued by reputable ocean freight forwarders to 
attach to drafts. Should loss or damage occur for which the 
ocean carrier is legally responsible, the ocean bills of lading 
issued by the ocean carrier to the forwarder become available. 
The ocean forwarder under the conditions of his bill of lad- 
ing has a lien on the cargo for "all freights, primages and 
charges, and also for all fines or damages which the ship or 
cargo may incur or suffer by reason of incorrect or insufficient 
marking, numbering or addressing of packages or description 
of their contents. Furthermore, all charges or expenses incurred 
through non-compliance with requirements will be charged to 
consignee." It is also provided that "if on a sale of the goods 
at destination for freight and charges, the proceeds fail to cover 
said freight charges, (the forwarder) shall be entitled to re- 
cover the difference from the shipper." 

Forwarder's Waybills 

The ocean freight forwarder having attended to the forward- 
ing of the shipment of air brake material through the port of 
export now prepares his waybill (Form 59), which contains 
instructions to the Liverpool firm acting as the forwarder's 
agent, and which also serves as the basis of his accounts in so 
far as charges have not been prepaid by the shipper or charged 
to him. It will be noted that transportation and other charges 
incurred in connection with the shipment of air brake material 
in question were prepaid to the warehouse at Sheffield, the final 
destination, so that the foreign agent was not called upon to 



182 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

collect anything from the consignee for the account of the 
ocean freight forwarder. 

The forwarder's waybill, besides containing instructions as to 
the collection of charges, also states the name of the steamer 
and her sailing date ; the marks, numbers, description, value and 
weight of the cargo ; to whom it is billed ; who shall be notified ; 
the name of the shipper; and a reminder that when consigned 
"to order," the cargo should be delivered only on presentation 
of the forwarder's through bill of lading properly endorsed. 




Form 59. — Forwarder's Waybill 

The waybill is issued in triplicate, one copy being kept by the 
forwarder as a record of the transaction, and two being sent to 
the foreign agent of the forwarder at the port of entry. Of 
these two copies, one is forwarded in a mail accompanying the 
shipment, and a second is sent in a later mail. The foreign 
agent is requested to specify his charges in a space provided 
for that purpose in the waybill, and to return it to the forwarder. 



Forwarder's Expense Bill 

The transaction between the forwarder and shipper or party 
for whom the air brake material was forwarded was closed 
on the basis of the forwarder's expense bill. As is shown in 



DOCUMENTS IN OCEAN FORWARDING BUSINESS 183 



Form 60, the shipper who agreed to pay the shipping charges 
through to destination was called upon to remit $365.46. This 
included the freight charge which carried the shipment from 
New York to Sheffield, the insurance on a value of $16,500 which 
the forwarder was requested to obtain, the forwarding charge, 
a charge for issuing the bill of lading, and a charge for issuing 
the customs clearance. 



■"■■'" 


TtumoNI TO anOAO 


N.W Yds Juna_2 

^ Atlantic Air Brake Co., 

CloTeland. Ohio.. 


s. a?i?,. 191 ., 


""•ffiteo*— ' 


Dr. 


WMr 

w., aai N.. «nFifl4 


FMSADtLPKii 


To CALDWELL & COMPANY, 


cja^"**^"' 31. Marine Insurance 
'^■^.^ " SO BROAD STREET, NEW YORK 

St*TTlX 






Kindly reinK in Now York Ezchin;e oi- lis eqaivalem whea pwrin| l)t« lecauni, u B»«k« thtffa coliKtlon U*s on owt-of-tevit cAecki^ [ 




MARK & 


lo chargts) ,l±xxiJD 
oti!h.pr-cntt'*'rS/5 CEDBIC, June 30, 1919. 












CONSIGNEE 
















Inland Fifigtit, 


























l.innQ 


Transfer Charges, 












Company , 


^i^kS^biaige., Mew York to Sheffield. 














23.0291? © $1.50 


299. 


56 








#1/30 . 




























Insurance $16,600. © 3/8 of 1» 


61. 


■S3 










Marling 














Inspection 














Sloiage 














ConsJa. Fees $ Ugallzaaon t 














Forwarding Charge 6< Services 


2. 


01 










Issuing Bills of Lading 


1 . 


^ 








Issuing Customs Clearance 




5( 










Commission 














Brokerage 














Shippers' C. O. D- 














Colltttion. Discount Fees 






$365 ■ 


i 






Telegrams. Cables & Postage 

— ■ — ■ : rr : ~ 
















Form 6o. — Forwarder's Expense Bnx 

The space calling for a statement of inland freight from 
Cleveland to New York remained blank in this transaction be- 
cause it was prepaid by the shipper. No transfer charges were 
billed to the shipper because the shipment was lightered by the 
railroad without special charge. No charges for marking, stor- 
age, inspection, shipper's C. O. D., collection discount, telegrams, 
cables and postage were billed because expenses of this nature 
did not need to be incurred in connection with this shipment. 
No consular fees were incurred because none are required under 
the consular regulations of England. The space for commissions 



184 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

remained blank as no special commission was charged for for- 
warding this consignment, and no brokerage was charged because 
when this shipment was made the steamship companies, some of 
whom had discontinued the payment of brokerage to ocean 
freight forwarders during the war, were again paying brokerage. 
The forwarder's expense bill serves as an itemized bill to the 
shipper and as the basis for settlement with him. It also serves 
as a basis for the forwarder's accounts in so far as charges and 
costs are charged to the shipper instead of the consignee. The 
waybill and expense bill enable the forwarder's accounting staff 
to keep account of his freight forwarding transactions. 



V 

f- 



CHAPTER XII 
TIME CHARTER PARTIES 

When the owner of a tramp vessel through a ship broker, 
operating manager or directly through his own immediate or- 
ganization charters a vessel to a shipper, steamship line or ves- 
sel-operating concern of any kind, the underlying document 
known as a charter or ''Charter party" is executed. Shippers 
need to understand the nature of this document when they utilize 
the ocean tramp service; and regular steamship lines, industrial 
steamship concerns, and other steamship operators when they 
supplement their own vessels with additional vessels not owned 
by them. The owners of tramp vessels are vitally concerned 
with charter parties because their principal business is to charter 
their vessels, and their profits depend upon the terms contained 
in these documents. Freight forwarders, too, are concerned 
with charter parties in so far as the cargoes which they handle 
are shipped in vessels chartered by them or by the shippers 
whom they represent. Ship brokers require the knowledge of 
experts with respect to charters, as it is through brokers that 
most charter arrangements are made. 

Two general types of charters are used in ocean shipping as 
conducted by private ship owners in their customary dealings 
with each other or with steamship operators, shippers, for- 
warders and brokers : time charters extending throughout an 
agreed period of time or indicated number of voyages, and trip 
charters covering a single voyage. Within each group or general 
type there are many variations, although the efforts of vessel 
owners' associations, maritime exchanges, grain exchanges and 
other trade associations, and the customs gradually developing 
at groups of ports, in defined sections of the commercial world 
or in particular trades have instilled a degree of uniformity as 
to their principal conditions. Owners and charterers may, how- 
ever, come to special agreement as to compensation, the risks, 
expenses or duties assumed or performed by each, and in re- 

185 



186 OCEAN STEAMSHIP TRAEEIC MANAGEMENT 

gard to other conditions inserted into the charter party signed 
by them or their agents. 



Form 61a.— Time Charter Party (Pre-war Conditions) 

TIME CHARTERS 

BOWRING & CO. 

17 BATTERY PLACE 

NEW YORK 

GOVERNMENT FORM 

THIS CHARTER PARTY, made and concluded upon In the City of New York, the S8th day of 

May. lOlS, between Mr.turs tfe Co., London, Agents for Owners 

of the good NoTweoian Screw Steamship now building and to be named 

of (tons net register, having engines of] [nominal horse power 

provided with proper certlticate for hull and machinery.) and classed, 1-A-l at Nor. Veritas of .about 

according to plan [about] cubic feet capacity and 9000 tons dead weight or 

thereabouts on Lloyd's Summer freeboard inclusive of bunkers, which are of the capacity of about 

tons of coal, and stores now expected to be ready in the Tync, .September or October. 

19111 and Messrs S. S. Line, Charterers of the City of 

New York. 

WITNESSETH, 1. Th!it the said owners agree to let, and the said Charterers agree to hire the 

said steamship from the time of delivery, for years. 

Steamer to be placed at the disposal of the Charterers, at a port in Tyne. in such docic or at such wharf 
or place (where slie may aiwaj-s safely lie afloat at all times of tide) as the Charterers may direct and 
being on her delivery ready to receive cargo, and tight, staunch, strong and In every way fltted for 
the service, havin.7 water ballast, steam winches and donkey boiler with capacity to run ali the steam 
winches at one and the same time, and with full complement of ofDeers, seamen, engineers, and 
firemen for a ves,sel of her tonnage and to be so maintained during the continuation of this Charter 
Party, to be employed in carrying lav^ful merchandise, including petroleum or its products, in cases 
and passengers so far as accommodations will allow (but any expense necessary to fit the steamer 
to comply with United States Pa-ssengcr Inspection laws to be l)-)rnc by the Cb.nrterers) In such lawful 
trades between safe port and/or ports in British North America and/or United States of America 
and/or West Indies and/or Central America and/or Caribbean Sea and/or Gulf of Mexico .and/or 
America and/or Europe and 'or Africa and/or Asia [and /or Australia] excluding River St. 
Lawrence from October 1, to May 1, (White Sea, Black Sea, and the Baltic out of season) Magdalena 
River and ail unsafe ports, czcli/ding Si. Lawrence Coal trade, excluding regular ore trade, excluaing Aus- 
tralia, excluding V.'cst Coast North America Coasting trade, as the Charterers or their Agents shall 
direct on the following conditions: 

2. That the ov/ner sliall iirovide and pay for all provisions, wages and Consular shlpolng and 
discharging fees of the Captain, Offlcers, Engineers, Firemen and Crew; shall pay for the insurance 
of the ves,sel. also for all the cabin, deck, engine-room and other necessary stores, and maintain her 
In a th^>roughly cfScient state in hull and machinery for and during the service. 

3. That the Charterers shall provide and pay for all the Coals, Fuels, Port C'h.irges, Pilotages. 
Agencies, Commis.sons. Consular Charges (except those pertaining to the captain, officers or crew), 
and all other Charges whatsoever, except those before stated. Charterers are to provide necessary 
dunnage and shifting boards, but owner to allow them the use of the dunnage and shitting boards 
already aboard steamer. 

4. That tile Charterers shall accept and pay at once on delivery of steamer for all Coal In the 
steamers Eunl;ers on delivery and the Owners shall, on expiration of the Charter Party, pay for all 
Coal left in the Bunkers, each at the current market prices at the respective Ports where she is 
delivered to them. 

5. That the Charterers shall pay for the use and hire of the said vessel fourteen hundred and eighty 
pounds {£HHO) British Sterling per Calendar Mouth, commencing on and from the day of her delivery, 
as aforesaid, and at and after the same rate for any part of a month: hire to continue until her redelivery 
in like good order and condition to the Owners (unless lost) at a port in U . K. or on the Continent 
between Bordeaux and Hamburg (Rouen excluded) at Chartercs' option. 

6. That should the steamer be on her voyage towards the port of return delivery at the time a 
payment of hire becomes due, said payment shall be made for suoli a length of time as the owners 
or their agents, and Charterers, or their agents may agree upim, as the estimated time necessary to 
complete the voyage, and when the steamer is delivered to owner's agents any difference shall be 
refunded by steamer or paid by Charterers, as tlie case may require. 

7. Payment of said hire to be made in cash at the current short sight rate of Exchange, or In 

approved Banker's sight bills on London, at owner's option monthly In 

advance, or as agreed, and in default of such iiayment the Owners shall have the faculty of with- 
drawing the said steamer from the service of the Charterers, without preiudlce to any claim they 
(the Owners) may otherwise have on the (Charterers in pursuance of this Charter. 

8. That the Charterers are to pay for victualling passengers at the r.ats of 5/ Br Sterling per day 
for first class passengers, 2/6 for second class [jassengers, and 1/3 for laborers or steerage passengers. 

9. That the cargo or cargoes are to be laden and or discharged 'n any dock or at any wharf or 
place tluit the Charterers or their Agents may direct, provided the steamer can always safely lie 
afloat at any time of tide. 

10. That the whole reach of tlie Vessel's Holds, Decks, and tLSual places of loading and accommo- 
dation of the ship (not more than she can reasonably stow and carry), shall be at the Charterers' 
disposal, reserving, only proper and suffleient space for ship's officers, crew, tackle, apparel, furniture, 
provisions, stores and fuel. Thai, the Captain shall use all Qiligeuce in caring for the ventilation o} 
the cargo. 

1 Clauses in [ ] were omitted from the printed form; those in italics were put in with typewriter. 



TIME CHARTER PARTIES 187 

Form 61a. — Time Charter Party (Pre-War Conditions) (Continued) 

11 That the Captain shall prosecute his voyage with the utmost despatch, and shall render all 
customary assistance with Ship's crew, tackle, and boats. That the Captain (although appointed 
by the owners) shall be under the orders and direction of the Charterers as regards employment, 
agency or other arrangements; and the Charterers hereby agree to indemnify the owners from all 
consequences or liabilities that may arise from the Captain signing Bills of Lading or otherwise 
complying with the same. 

12 That if the Charterers shall have reason to be dissatisfied with the conduct of the Captain, 
OfQcers or Engineers, the Owner shall, on receiving particulars of the complaint, Investigate the same, 
and if necessary, make a change in the appointment. 

13. That the Charterers shall have permission to appoint a super-cargo who shall accompany the 
steamer and see that voyages are prosecuted with tlie utmost despatch. He to be furnished free 
of charge, with first class accommodations, and same fare as provided for captain's table. 

14. That the Master shall be furnished from time to time with all requisite instructions and 
sailing directi''ns. and shall keep a full and correct Log of the voyage or voyages, which are to be 
patent to the Charterers or their Agents, and to furnish the Charterers, their Agents or Super-Cargo, 
when required, a true, daily copy of Log, showing the course of steamer and distance run, and the 
consumption of coal. , . , . . ,, , j ., 

15. [That the Charterers have the option of contmuing this charter for a fiirther period of] 

[uii giving notice theronf to the owners or 

their agents] . . . '. Idays previous to the expiration 

of the first named term, or any declared oi.tion.l Charterers to have the option of sub-letting the 
steamer for all or any part of the time covered by this charter. 

16. That If required by Charterers, time not to commence before 

and should Steamer not be ready for delivery at port of delivery on or before 

Charterers or their agents to have the option of Cancelling this charter at any time not later than 
the day of Steamer's readiness. 

17. That in the event of loss of time from deficiency of.men or stores, or from any defect of break- 
down of machinery, steering apparatus, etc.. or damage from fire, collision, stranding or damage which 
prevents the working of or the continuance on the voyage of the Vessel for twenty-four consecutive 
hours or more, the payment of hire shall cease from the commencement of the loss of time till she 
again resume actual service for Charterers, tight, staunch and strong, and in every way fitted at the 
place o; accident, or should the Vessel put back from any of the above-mentioned causes or put into 
any other port than that to which she is bound, the hire shall be suspended from the time of her putting 
back or putting in until she be again in the same position and the voyage resumed therefrom, and 
the port charges and pilotages at such port shall be borne by Steamer's Owners. Owners are also to 
pay Charterers for the value of any of C^harterer's btmkor coals that are consumed while the steamer 
la oft hire, based on the current price of bunker coal trimmed into bunkers at the port steamer is In 
when off hire, but if steam.er is at sea when off hire occurs, then price to be based on current rate at 
the port steamer is first in after her period off hire. Also, if any loss of time is incurred through 
fault of ship, after cargo and coals are on board, or cargo discharged and ship ready for sea as far 
ka Charterers are concerned and hour of sailing has been fixed by Charterers and reasonable notice 
given to Captain, such lost time is to be for Steamer's account: but should the Vessel be driven into 
port or anchorage through stress of weather, or from any accident to the cargo, such detention or loss 
of time shall be at the Charterer's risk and expense. If upon the voyage the Steamer's speed be reduced 
by break-down of machinery or other casualty, the time lost and the cost of the extra coal, if any, 
consumed in consequence thereof shall be borne by the Owners. 

18. That should the Vessel be lost, freight paid in advance and not earned (reckoning from the 
date of her last being heard from) shall be returned to the Charterers. The act of God, enemies, fire, 
restraint of Princes, Rulers and the People, and all dangers and accidents of the Seas, River. 
Machinery, Boilers, Steam Navigation and errors of Navigation, throughout this Charter Party, 
always mutually excepted. 

19. That should any dispute arise between the Owners and the Charterers, the matter in dispute 
shall be referred to three per.sons in New York, one to be appointed by each of the parties hereto, 
and the tliird by the two so chosen: their decision, or that of any two of tliern, shall be final, and for 
the purpose of enforcing anv award, this agreement may be made a rule of the Court. 

2U. That the Owners shall have a lion upon all cargoes and all sub-freights, for any amounts due 
under this Charter, and the Charterers to have a lien on the Ship for all moneys paid in advance 
and not earned. , ^ ^ 

21. That all derelicts and salvages shall be for owners' and Charterers equal benefit. General 
Average, if any, to be according to York-Antwerp rules, 1890. 

22. Charterers agree to arranye employment so as to enable steamer to dock in the United Kingdom 
or on the Continent not more than, once in nine (9) months. [That as the steamer may be from time 
to time employed in tropical waters during the term of this Charter, steamer is to be docked, bottom 
cleaned and painted whenever Charterers and Master think necessary, at least once in every six 
months,! and payment of the hire to be suspended until she is again in proper state tor the service. 

2A. That the owners are to provide ropes, falls, slings and blocks, necessary to handle ordinary 
cargo up to three tons (of 2240 lbs. each) In weight, also lanterns for night work. 

24. Steamer to work night and day if required by Charterers, and all steam winches to be at 
Charterers disposal during loading and discharging, and steamer to provide men to work same both 
day and night as required. Charterers agreeing to pay for all night work, at the current local rate. 

25. It is also mutually agreed, that this charter is subject to all the terms and provisions of and all 
the exemptions from liability contained in the Act of C^ongress of the United States, approved on the 
13th day of February, 1893. and entitled "An Act relating to Navigation of Vessels, etc." 

26. A commission of Five per cent, upon the gross amount of this Charter and the usual freight 

brokerage, payable by the steamship and owners, due to AND COMPANY, 

upon the signing hereof, steamship lost or not lost, and also upon any renewal or extension of this 
Charter or on sale of Vessel. 

27. An address Commission of 2H per cent, payable to 

Steamship Line. 

28. Penalty lor non-performance of this Contract, estimated amount of damages. 

(.Signed) & Company 

(Signed) (By Cable authority from Messrs <& Co. 

Witness to the signature of ( dated at London, May 2Sth, 1912. 

Witness to the signature of (Signed) 

A true Copy of the Original Charter Party. 



Agents. 



188 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Form 61b. — time Charter Party (War Conditionb) 

TIME CHARTER' 

BOWRING & CO. 
17 BATTERY PLACE 

NEW YORK 

GOVERNMENT FORM 

TBIS CHARTER PARTY, made and concluded upon In the City of New York, the Sid day of 

Mau, 191^. between Afessrs Managing Agents for Owners 

of the good Danish Screw Steamship of 

of 17SB tons gross rei,'lstor. and 10!)/} tons net replster, liavlnir engines of nominal 

horse power provided with propor certillcate for hull and machinery, and classed, first class of about 

cubic feet capacity and about S/,74 tons dead weight or thereabouts on 

Lloyd's Summer freeboard inclusive of bunkers, which are of the capacity of about tons 

of coal and stores water, etc., now trading account Line and 

Charterers of the City of Washington. 

' ' witnc''selh, 1. T'lat the .said owners agree to let, and the said Charterers agree to hire the said 
steamship from the time of delivery, for one (.1) round trip within the undermentioned limits, said voyage 
to occupy about six (6) tcccks. Steamer to be placed at the disposal of the Charterers, whcit and where 
steamer is redelivered by the Munson S. S. Line, under the charier to them dated April ^9th, WIS; it being 
understood that this charter is for direct continuation and that there shall be no interruption of time between 
the two charterers [In such dock or at such wharf or place (where she may always safely lie afloat at all 
times of tide) as the Charterers may direct! and being on her delivery ready to receive cargo, and tight, 
staunch, strong and in every v,-ay fitted for the service, having water ballast, steam winches and 
donkey boiler wllli capacity to ran all the steam wlnch;>s at one and the same time, and with full 
complement of olllccr.s. seamen, engineers, and firemen for a vessel of her tonnage and to be so main- 
tained during the continuation of this Charter Party, to be employed in carrying lawful merchandise, 
excluding arms, ammunitions, explosives and injurious cargo. (Including petroleum or its products, in 
cases and passengers so far as accommodations will allow (but any expense necessary to fit the steamer 
to comply with United States Passenger Inspection law.= to be borne by the Charterers)! In such law- 
ful trades between safe port and/or ports in (British North .America and/or] United States of America 
and 'or West Indies and or Central America and /or Caribbean Sea and/or Gulf of M:'xlco and/or 
Soutli America not Stuth of Dcmerara (Europe and /or Africa and/or Asia and/or Australia excluding 
River St. Lawrence from October 1, to May 1, (White Sea. Black Sea, and the Baltic out of season) 
Magdaiena River and all unsafe ports] excluding Magdalcna River and all unhealthy, unsafe and 
dangerous ports and rivers and ports where hostilities are in progress, as the Charterers or their Agents 
shall direct on the following conditions: 

2. That the owner shall provide and pay for all provisions, wages and Consular shipplnf: and 
discharging fees of the f'antaln. Officers, Engineers, Firemen and Crew; shall pay for the Insurance 
of the vessel, also for all the cabin, deck, englne-rooui and other necessary stores, and maintain her 
In a thoroughly efflclent state hi hull and machinery for and during the service. 

?,. That the Charterers shall provide and pay for all the Coals, Fuels. Port Charges. Pilotag&s, 
Agencies, CommLsslons. Consular Charges (except those pertaining to the captain, officers, or crew) 
and all other Charges whatsoever, except those before stated. Charterers are to provide necessary 
dunnage and shifting boards, but owner to allow them the use of the dunnage and shitting boards 
already aboard steamer. 

4. That the Charterers shall accept and pay at once on delivery of steamer for all Coal In the 
steamers Bunkers on delivery and the Owners shall, on expiration of the Charter Party, pay for all 
Coal left in the Bunkers, each at tlie current market prices at the respective Ports where she is delivered 
to them. 

5. That the Charterers shall pay for the ase and hire of the said vessel Thirty-five shillings (35/) 
on steamer's total dead ivcight capacity on Summer marks. British Sterling per Calendar Monthj com- 
mencing on and from the day of her delivery, as aforesaid, and at and after the same rate for any 
part of a month; hire to continue until her redelivery in like good order and condition to the Owners 
(unl2S.'5 lost) at n port in the Vnitid .Htatcs North of I latter as but not east of New York, at Charterers' option. 

6. That sliould the steamer be on her voyage towards the port of return delivery at the time a 
payment of hire becomes due. said i)ayment shall be made for stich a length of time as tlie owners 
or their at; 'nts. anri Charterers, or their agents may agree upon, as the estimated time necessary 
to complete the voyage, and when the steamer is delivered to owner's agents any difference shall 
be refunded by steamer or paid by Charterers, as the case may require. 

7. Payment of said hire to lie made in rash at New York at the current short sight rate of Exchange, 
(or In approved Bankers' sight bills on London, at owner's option! scmi-montlily in advance, or as 
agreed, and In default of such payment the Owners shall have the faculty of withdrawing the said 
steamer from the service of the Cliarterers, without prejudice to any claim they (the Ownersj^may 
otherwise have on the Charterers in pursuance of this Charter. 

8. [That the Charterers are to pay for victualling passengers at the rate of 5/ Br. Sterling per day 
for first clivss pa-ssengers. 2/6 for second cla.ss passengers, and ) /3 for laborers or steerage passengers.] 

9. That the cargo or cargoes are to be laden and /or discharged in any dock or at any wharf or 
place that the Charterers or their Agents may direct, provided the steamer can always safely lie 
afloat at anv time of tide. 

10. That the whole reach of the Vessel's Holds. Decks, and usual places of loading, and accommo- 
dation of the .ship (not more than she can re^-sonably stow and carry), shall be at the Charterers' 
disposal, reservini,', only proper and .sufficient space for ship's officers, crew, tackle, apparel, furniture, 
provisions, stores and fuel. That the Captain shall use all diligence In caring for the ventilation of 
the cargo. 

11. That the Captain .shall prosecute his voyage with the utmost despatch, and shall render all 
customary assistance with Ship's crew, tackle, and bo.at.s. That the Captain (although appointed by 
the owners) shall be under the orders and direction of the Charterers as regards employment, agency, 
or other arrangement.s: and the Charterers hereby agree to Indemnify the owners from all conse- 
quences of liabilities that may ari.se from the Captain signing Bills of Lading or otherwise complying 
with the same. 

12. That If the Charterers shall have reason to be dissatisfied with the conduct of the Captain, 
Officers or Erginoers. the Owner shall, on receiving particulars of the complaint. Investigate the same, 
and If necessary, make a change in the appointment. 

> Clauses enclosed in [ ] were eliminated from the printed form; those In Italics were Inserted with 
typewriter. 



TIME CHARTER PARTIES 189 

Form 61B. — time chakteu Party (War Conditions) — (.Continued) 

13 [That the Charterers shall have permission to appoint a super-cargo who shall accompany 
the steamer and see that voyages are prosecuted with the utmost despatch. He to be furnished 
free of charge with lirst class accommodations, and same fare as provided for captain s table.] 

14 That the Master shall be furnished from time to time with all requisite instructions and 
sailing directions, and shall keep a full and correct Log of the voyage or voyages, which are to be 
patent to the Charterers or their Agents, and to furnish the Charterers, their Agent or huper-Cargo, 
when required, a true, dally copy ol Log, showing the course of steamer and distance run and the 
consumption of coal. , ,j,,ji, ,. , .„ 

15 It is agreed that steamer is to be docked bottom cleaned and painted before she enters on delivery 
hcreunder'unless this has been done wUMn the last six months from date hereof. [That the Charterers 
have the "option of continuing this charter tor a further period of ... . .on giving notice thereof to 
the owners or their agents days previous to the expiration of the first named term, or any de- 
clared option]. Charterers to have the option of sub-letting the steamer for all or any part of the 
time covered by this charter. . , 

16 [That if required by Charterers, time not to commence before. . 

and should Steamer not be ready for delivery at port of delivery on or before \- ■ ic' 

Charterers or their agents to have the option of Cancelling this charter at any time not later than 
the day of Steamer's readiness.) ,, . ^ , ^..^.i,, 

17 That in the event of loss of time from deficiency of men or stores, or from any defect of break- 
down of machinery, steering apparatus, etc., or damage from fire, collision, strandmg or damage which 
prevents the working of or the continuance on the voyage of tje Vessel for twenty-four consecutive 
hours or more the payment of hire shall cease from the commencement of the loss ol time till she 
again resume actual service for Charterers, tlgit, staunch and strons. and In every way fitted at the 
place of accident or should the Vessel put back from any of the above-mentioned causes or put into 
any other po'-t Uan that to which she is bound, the hire shall be suspended from the time of uer putting 
back or putttag in until she be again in the same position and the voyage resumed therefiom. and 
the port charges and pilotages at such port shaU be borne by Steamer's Owners. Owners are also 
to 'pay Charterers lor the value ol any of Charterers' bunker coals that are consumed while the 
steamer is off hire based on the current price of bunker coal trimmed into bunkers at the port 
steamer is In when oH hire, but if steamer is at sea when off hire occurs then price to be based on 
current rate at the port steamer is first hi after her period off hire. Also, if any loss of time is mcurred 
through fault of ship, after cargo and coals are on board, or cargo discharged and ship ready for sea 
as far as Charterers are concerned and hour of sailing has been fl.xed by Charterers and reasonable 
notice given to Captain, such lost time is to be for Steamer's account; but should the Vessel be driven 
Into port or anchorage through stress of weather, or from any accident to the cargo, such detention 
or loss of time shall be at the Charterers' risk and expense. If upon the voyage the Steamer's speed 
be reduced by break-down of machinery or other casualty, the time lost and the cost of the e.\tra 
coal. If anv. consumed In consequence thereof shall be borne by the Owners. ^ ^ , , ^ 

IS That should the Ve.sscl be lost, freight paid in advance and not earned (reckoning from the 
date of her last being heard from) shall be returned to the Charterers. The act of God, enemies, fire, 
restraint of Princes, Rulers and the People, and all dangers and accidents of the Seas, River, 
Machinery, Boilers. Steam Navigation and errors of Navigation, thr ughout this Charter Party, 
always mutually excepted. , „ j ... ^, ^ »,, ^^ , j, ^ 

19. That should any dispute arise between the Owners and the Charterers, the matter In dispute 
shall be referred to three persons hi New York, one to be appointed by each of the parties hereto, 
and the third by the two so chosen; their decision, or that of any two of them, shall be final, and for 
the purpose ol enforcing any award, this agreement may be made a rule of the Court. 

20 That the Owners shall have a lien upon all cargoes and ail sub-freights, for any amounts due 
under this Charter, and the Charterers to have a lien on the Ship for all moneys paid in advance 
and not earned. . ^ ^._ . , ._ ^. ^ 

21. That all derelicts and salvages shall be for owners and Charterers equal benefit. General 
Average, if any. to be according to York-Antwerp rules. 1890. , . .. 

22. (That as the steamer may be from time to time employed In tropical waters durmg the term 
of this Charter, steamer is to be docked, bottom cleaned and painted whenever Charterers and Master 
think necessary, at least once in every six months, and payment of the hire to be suspended imtll 
she Is again in proper state for the service.) ^ ^, , ^ ^, ^, 

23. That the owners are to provide ropes, falls, slings and blocks necessary to handle ordinary 
cargo up to three tons (of 2210 lbs. each) in weight, also lanterns for night work. 

24. Steamer to work night and day if required by Charterers, and ail steam winches to be at 
Charterers' disposal during loading and discharging, and steamer to provide men to work same both 
day and night as required. Charterers agreemg to pay for all [night work, at the current local rate] 
overtime of officers and crew, shore winchmcn, if required, to be for Charterers' account. 

25. It Is also mutually agreed, that this charter is subject to al 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 reiatmg to Navigation of Vessels, etc." 

26. A commission of Five per cent, upon the gross amount ol this Charter and the usual freight 

brokerage, payable by the steamship and owners, due to AND COMPANY, 

upon the signing hereof, steamship lost or not lost, and also upon any renewal or extension of this 
Charter or on sale of Vessel. 

27. An address Commission of 2 H per cent, payable to 

28. Penalty for non-performance of this Contract, estimated amount ol damages. 

(Siffned) 



{i 



witness to the signature of < By Cable authority from & Co. 

Idate at London, May S3d. 191S. 
{Signed) UNITED states shipping board. 

■Witness to the signature of Chartering Committee, 

A true Copy of the Orlgmal Charter Party, WELDING RING. 

Chairman. 
Agents, 
Note: — This charter is subject to owners' securing approval of same from the Interallied Chartering 
Executive and also securing license for the voyage from the Danish Government. 

In event of war conditions steamer has liberty to -proceed via any route to destination and to deviate in 
the course of the voyage to avoid capture, destrtwtion, s izure, etc., and if al any time owners deem it unsa.fe 
for vessel to leave port, oieners to have privilege of delaying departure for a reasonable time, such delay to 
oe for owners' account. 

In the event of the Danish Government requisitioning this steamer this Charter becomes null and void. 
In the event of the vessel loading on the berth and/or loading general cargo the charterers shall bear the first 
£.100 on any cargo of claims arising from improper stowage, horl delivery (whether from pilferage or any 
cause whatsoever) and over carriage for which there may be responsibility on the part of the ship owner 
and if the ship owner shall from any cause have to pay such claims in the first instance he shall be iiuitm- 
iiifiea by the charterers up to Vie exleju, of llm said £100. 



190 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



Commercial Time Charters 

The reader is urged to read carefully the conditions con- 
tained in the time charter reproduced in Form 61, for it is 
typical of the time forms commonly used at American ports 
when a vessel owner, or a time charterer who is willing to sub- 
let a vessel leases or charters a steamer to a charterer. It is, 
moreover, the time charter that was approved by the Govern- 
ment during the war. In this charter the vessel, which is 
identified by name, home port, gross and net register tonnage, 
nominal horse-power, cubic feet and dead weight capacity, proper 
inspection certificate covering hull and machinery, and specified 
classification rating, is chartered by the undersigned owner or 
his agents to the undersigned charterer for an agreed period 
of time, subject to the charterer's continuing it for a further 
specified period. A time charter's duration may be variously 
established for a more or less fixed period of months or years 
or as was at times done during the war, for the duration of 
the war; or it may cover an agreed number of voyages in a 
defined trade. In the latter case the estimated time required 
to make such voyages is usually stated, the owner reserving 
the right to terminate the charter if it becomes clear that the 
last round trip voyage provided for in the charter could not 
be completed within the period of time specified. 

The typical time charter reproduced in Form 61a further 
provides that the vessel will be placed at the disposal of the 
charterer at a designated port; that it will be in fit condition 
to receive cargo, and that it will, during the life of the charter, 
be maintained in a seaworthy condition and with a full com- 
plement of officers and crew. The charterer is authorized to 
transport general merchandise, including petroleum or its prod- 
ucts, and passengers so far as accommodations permit, in lawful 
trades between safe ports in the United States or British North 
America and the West Indies, Central America, the Caribbean 
Sea, Mexico, the Gulf of Mexico, South America, Europe, 
Africa, Asia, and Australia, but excluding the St. Lawrence 
River from Oct. 1st to May 1st, the White, Black and Baltic 
Seas out of season, the Magdalena River and all unsafe ports. 

The vessel is to be operated under direction of the charterer 



TIME CHARTER PARTIES 191 

or his agent subject to 28 numbered conditions. Special atten- 
tion is called to the clauses covering the charter rate or hire 
which is to be paid by the charterer to the owner. The usual 
practice in seagoing traffic under a time charter covering a cargo 
vessel is the payment of a fixed amount per deadweight ton per 
calendar month. The basis, it will be noted, is the deadweight 
capacity of the vessel regardless of the amount of cargo carried. 
In case of a passenger steamer the time charter payment is 
more commonly based upon the vessel's gross register tonnage. 
Payment may, however, in either case be fixed on a lump sum 
basis. 

An additional clause prescribes the mode of payment, the 
time chai-ter reproduced in Form 61a providing that it shall be 
"in cash at the current short sight rate of exchange, or in ap- 
proved bankers' sight bills on London . . . monthly in advance, 
or as agreed." The corresponding clause in a time form ap- 
proved by the New York Produce Exchange, Nov. 6, 1913, 
provides that payment is to be "made in New York in cash at 
the current short sight rate of exchange, or in approved bankers' 
sight bills on London, at owner's option, semi-monthly, in ad- 
vance, and for the last half month or part of same the approxi- 
mate amount of hire, and should same not cover the actual time, 
hire is to be paid for the balance day by day, as it becomes due, 
if so required by owners, unless bank's guarantee or deposit is 
made by the charterers." In case of default of payment the 
owner has the right to withdraw his vessel from the service 
of the charterer without prejudice to any claim the owner may 
have under the terms of the charter party. In the event of 
loss of time due to deficiency of men or stores, breakdown of 
machinery, stranding, fire or damage preventing the operation 
of the vessel, the time charter in Form 61a provides that, if the 
loss of time exceeds twenty-four consecutive hours, payment of 
the hire is discontinued from the commencement of the loss of 
time until the vessel is again in an efficient state to resume the 
service. Should the vessel be lost, all freight paid in advance 
and not earned up to the date of the vessel last being heard of 
is to be returned to the charterer. The owner has a lien on the 
cargo and on all sub-freights for amounts due him; and the 
charterer has a lien on the vessel for amounts paid in advance 
and not earned. 



192 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

The time charter reproduced in Form 61a next proceeds to 
divide between the owner and charterer the expenses and re- 
sponsibility connected with the operation of the vessel. The 
owner, who receives pay for the use of his vessel, is obliged 
to pay all the wages of the officers and crew who as stated 
above are provided by him, and all consular fees incurred in 
shipping and discharging the officers and crew. He is also re- 
quired to provide and pay for all provisions for their use, all 
necessary ship's stores, and the insurance on the vessel. He 
further agrees to maintain the hull and ship's machinery in an 
efficient state. 

The charterer who pays the amount of hire agreed upon is 
required to provide and pay for all bunker coal or other fuel ; 
all port charges and consular fees other than the consular fees 
connected with the shipping and discharging of officers and 
crew; also pilotage charges, agencies, commissions and all other 
charges except those specifically delegated to the owner in the 
charter. The clauses regarding fuel provide further that the 
charterer accepts and pays for any coal in the bunkers on de- 
livery, while the owner similarly accepts and pays for all coal 
left in the bunkers on the expiration of the time charter. The 
charterer's obligation to pay pilotage and port charges is modified 
by a special clause to the effect that in case the vessel puts into 
port other than the one to which she is bound because of de- 
ficiency of men or stores, breakdown of machinery, stranding, 
fire or damage preventing the working of the vessel, pilotage 
and port charges there incurred shall be paid by the owner. 
If the vessel is driven into port or to anchorage by stress of 
weather or accident to cargo the charterer's obligation to pay, 
however, remains effective. 

The charterer may use whatever dunnage is on board the 
vessel at time of delivery, but he is required to provide any ad- 
ditional dunnage that may be necessary. If passengers are car- 
ried, the charterer is also required to pay passenger vic- 
tualing costs at agreed rates per passenger per day, the amount 
varying for first class, second class and steerage passengers. 

Time charters in addition contain various clauses further 
defining the rights and duties of the owner, charterer and master 
cf the vessel. The "whole reach" of the vessel's holds, deck and 
usual places of loading and accommodation are at the disposal 



TIME CHARTER PARTIES 193 

of the charterer, excepting such parts as are needed for officers 
and crew, tackle, apparel, furniture, provisions, stores and fuel, 
and excepting also that the cargo may not exceed what the vessel 
can reasonably stow and cany. The captain is required to 
prosecute the voyage of the vessel with the utmost dispatch; to 
render all customary assistance with the crew, tackle and boats; 
to keep a full and correct log of all voyages open to the inspec- 
tion of the charterer or his agent and furnish a daily log to the 
charterer, his agent, or super cargo showing the course of the 
steamer, the distances run and fuel consumption; and to use 
all diligence in caring for the ventilation of cargo. The captain 
shall be under the orders and direction of the owner as regards 
employment, agency or other arrangements, the owners, how- 
ever, being indemnified against consequences arising from the 
signing of bills of lading by the captain or other arrangements 
entered into by order of the charterer. Should the charterer 
be dissatisfied with the conduct of the captain, officers or en- 
gineers the owners shall investigate complaints and if neces- 
sary expect a change. In the time charter reproduced in Form 
61a, the charterer is given the right to sublet the vessel, and to ap- 
point a supercargo who is to be furnished with first-class ac- 
commodations free of charge. If the steamer is not ready for 
delivery to the charterer on or before an agreed date he may 
under the so-called cesser's or cancellation clause cancel the 
charter at any time not later than the day of the steamer's 
readiness. 

Should any dispute arise between owner and charterer, pro- 
vision is made for the appointment of a board of three persons, 
the majority decision of whom shall be binding. As the steamer 
may from time to time be employed in tropical waters, provi- 
sion is made for the docking of the vessel at least once every 
six months to be bottom cleaned and painted, or more frequently 
if the charterer and captain think necessary, and when so docked 
the payments by charterer to owner are suspended until the ves- 
sel is again fit for service. The owner is required to provide 
ropes, falls, slings and blocks necessary to handle ordinary cargo 
up to three tons in weight, and lanterns for night work. If the 
charterer requires, the steamer is to work night and day, and all 
steam winches and sufficient men to work them are to be at the 
disposal of the charterer, who agrees to pay for night work at 



194 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

the current local rate. Derelicts and salvage are to be for the 
mutual benefit of the owner and charterer. "Acts of God, 
enemies, fire, restraint of Princes, Rulers and People, and all 
dangers and accidents of the seas, river, machinery, boilers, steam 
navigation, and errors of navigation, throughout this charter 
party," are always mutually excepted, and the charter is also 
governed by the provisions of and the exemptions from liability 
contained in the Harter Act of Feb. 13, 1893.^ 

A penalty clause providing for the estimated amount of dam- 
ages in case of non-performance of contract is added. A com- 
mission or brokerage clause requires the vessel owner to pay 
the ship broker who effected the charter a 5 per cent, commission 
on the gross amount of the charter and the usual freight broker- 
age, whether the vessel is lost or not lost, upon the signing of 
the charter and also upon any extension or renewal of the 
charter of sale of the vessel. An address commission clause 
provides for the payment of a 2 J/2 per cent, commission for 
attending to the ship's business in port. 

FORM 62. — New York produce Exchange TmB Charter Partt 

Speed about 9 knots 
Consumption abovt 30 tons good coal 

TIME CHARTERS 

BOWRING & CO. 

17 BATTERY PLACE 

NEW YORK 

SHIP BROKERS AND STEAMSHIP AGENTS AND OENBRAL 
COMMISSION MERCHANTS 

GOVERNMENT FORM 

Approved by the New York Produce Exchange, November 6th, 191S 
THIS CHARTER PARTY made and concluded upon In the City of London, the SSth day of 

Aprii. 1916, Between Messrs. The Co. of New York 

Disponents [Agents for Owners) of the good English Screw Steamship of 

London, of 4S4S tons gross register, and 3171 tons net register, having engines of 403 nominal 
horse power and with hull, machinery and equipment In a thoroughly efBelent state, and classed 
100 Al »t Lloyd's of about S90.000 cubic leet Israln] bait capacity eicludinu 300 tons permanent 
buntcrs and about 7900 tons totcU dead weight capacity (cargo and bunkers. Including stores [not 
exceeding fifty tons) on Lloyd's Summer freeboard, inclusive of permanent bunkers, which are of 

the capacity of about tons of coal] now trading and Messrs 

<fc Co., Charterers of the City of London. 

WITNESSETH, That the said Owners agree to let, and the said Charterers asree to hire the said 

Steamship from the time of delivery, for [about] a voyage from Calcutta to the States {via Cape or Panama 
Canal) between Cape Hatteras and Boston, both inclvsive, calling at usual coaitng stations. Charterers 
to have liberty to sublet the Steamer for all or any part of the time covered by this Charter, but 
Charterers remaining responsible for the fulfllment of this Charter Party. 

Steamer to be placed at the disposal of the Charterorn. at Calrulta, in such flc'k or at such wharf or 
place (where she may always safely He afloat, at all times of tide), as the Charterers may direct, and 
being on her delivery ready to receive cnrgo with cle!)n-swept holds and tight, staunch, strong and In 
every way fitted for the .=w-rvice. having water ballast, steam winches and donkey boiler with capacity 
to run all the steam winches at one and the same time (and with full complement of ofdcers. seamen, 
engineers and firemen for a ve.'Jsel of her tonnage! . to be employed. In carrj'lng lawful merchandise. 
Including petroleum or Its products, and passengers so far as accommodations will allow (but any 
expense necessary to Ot the stpamer to comply with United States Passenger Inspection laws to be 
borne by Charterers) In such lawful trades, [between safe port and/or ports In British North America, 
and/or United States of America, and/or West Indies, and/or Central America, and/or Caribbean 

1 See Manual on Marine Insurance, by S. S. Huebner. 

5 Clauses enclosed In [ ] were eliminated from the printed form; those In Italics were Inaerted with 
typewriter. 



TIME CHARTER PARTIES 195 

FORM"62. — New York Produce Exchange Time Charter Party (Continued) 
Sea, and/or Gulf of Mexico, and/or Mexico, and/or South America] as above [and/or Eurooe and/or 
Africa, and/or Asia, and/or Australia, excluding River St. Lawrence from October 1st to May 1st 
White Sea. Black Sea and the Baltic out of season, Magdalena River, and all unsafe ports:] 

as the Charterers or their Agents shall direct, on the foliowirig conditions: 

1. That the Owners shall provide and pay for all provisions, wages and Consular shipping and 
discharging fees of the Captain. OlBcers, Engineers. Firemen and Crew: shall pay for the insurance 
of the vessel, also for all the cabin, deck, engine-room and other necessary stores, and maintain her 
class and keep the steamer In a thoroughly efficient state In hull, machinery and eaulpment for and 
during the service. 

2. That the Charterers shall provide and pay for all the Coals except as otherwise agreed Port 
Charges. Pilotages, Agencies. Commissions. Consular Charges (except those pertaining to the Captain 
Officers or Crew), and all other usual expenses except those before stated, but when the vessel puts into 
a port for causes for which steamer Is responsible, then .ill such charges incurred shall be paid bv owners 
but should vessel be driven into port or to anchorage through stress of weather or any accident to' 
cargo such detention and loss of time to be at Charterers' risk and expanse. 

Charterers are to provide necessary dunnage and shifting boards but Owners to allow them the use 
of the dimnage and shifting hoards already aboard Steamer. Charf^rers to huve the privilege of 
using shifting boards for dunnage, they making good for any damage thereto 

3. That the Charterers shall accept and pay for all Coal In the Steamer's Bunkers and the Owners 
shall, on expiration of this Charter Party, pay for all Coal left In the Bunkers at the current market 
price at the respective places where she is delivered to them, 

4. That the Charterers shall pay for the use and hire of the said Vessel 170,000 say Sctwnty thnvsand 

V. S. Dollars [Brltjsh Sterling] ... per Calendar Month. 

commencing on and from the day of her delivery, as aforesaid, and at and after the same rate for 
any part of a month: hire to continue until the hour of the day of her re-<lellvery In like good order and 
condition, ordinary wear and tear excepted, to the Owners (unless lost) at a port in the states between 
Cape Hattcras and Boston, both inclvsire, in Charterers' option. 

5. Payment of said hire to be made In New York In cash [at the current short sight rate of Exchange 
or in approved Bankers' sight bills on London, at Owners' option, semi-) monthly, in advance and 
for the last half month or part of same the approximate amount of hire, and should same not cover 
the actual time, hire Is to be paid for the balance day by day. as It becomes due. If so required by 
Owners, unless bank guarantee or deposit Is made by the Charterers, otherwise falling the punctual .and 
regular payment of the hire, or bank iniarantee. or any breach of the Charter Party a.1 herein .speciiled 
theOwner3,shallbe.itlli)erty to withdraw the vessel from the service of the f'hartere'rs. without prejudice 
to any claim they (the Owners) may otherwise have on the Ch.irterers in pursuarice of this charter 
Delivery to count from 7 a. m. on the working day following that on which written notice has been 
given before 4 p. m., but If required by Charterers. loadina to commence at once, such time used 
to count as hire. 

6. That the cargo or cargoes be laden and /or discharged in any dock or at any wharf or place that 
the Charterers or their Agents may direct, provided the Steamer can always safely He afloat at any time 
of tide, except at such places where it Is ciMtomary for similar slae steamers to .safely lie aground 

7. That the whole reach of the Ve.ssel's Holds, Decks, and usual places of loading and accommo- 
dations of the Ship (not more than she can rea.sonably stow and carry), shall be at the Charterers' 
disposal, reserving only proper and sufflclent space for Ship's officers, crew, tackle, apparel, furnltm-e 
provisions, stores and fuel. " 

8. That the Captain shall prosecute his voyages with the utmost de-spatch. and shall render all 
customary assl=:tance with Ship's crew and boats. The Captain (although appointed by the 
Owners), shall be under the orders and direction of the Charterers as regards employment or agency; 
and Charterers are to load, stow, and trim the cargo at their expense under the iupervislon of the 
Captain, who Is to sign Bills of Lading for cargo as presented. In conformity with Mates' or Tally 
Clerks' receipts. Owners to give Time Charterers the benefit of their Protection and Indemnity 
Club Insurance* to the same extent that Owners themselves would have been protected, and In cs.se 
of shortage or damage to cargo. Charterera to bear the franchise according to the Club rules, which 
Owne™ would have otherwise borne. 

9. That If the Ch.arterers shall have reason to be dissatisfied with the conduct of the Captain, 
Officers, or Engineers, the Owners shall on receiving particulars of the complaint. Investigate the 
same, and. If necessary, make a change in the appointments. 

10. That the Charterers shall have permission to appoint a Supercargo, who shall accompany the 
Bteamfer and see that voyages are prosecuted with the utmost despatch. He Is to be fumlaned. free 
of charge, with flrst-class accommodations, and same fare as provided for Captain's table. Provided. 
Charterers do not use the Supercargo privilege, owners to victual Pilots. Tally Clerki, Stevedore's 
Foreman. Customs Officers, etc.. as customary, free, but If Supercargo privilege Is used. Charterers 
to pay victualing of Pilots. Tally Clerks, etc., at the rate of 25c. per meal. 

11. That the Master shall be furnished from time to time with all requisite instn:ctIons and sailing 
directions, and shall keep a full and correct Log of the voyage or voyage*, which are to be patent 
to the Charterers or Agents, and to furnish the Charterers, their Agents or Supercargo, when required, 
a true dally copy of Logs, showing the course of steamer and distance rim and the consumption of coal. 

12. That the Master shall use diligence In caring for the ventilation of the cargo. 

13. (That the Charterers shall have the option of continuing this charter for a further period olj 

[on giving notice thereof to the Owners or their Agents] . . . . . .' .' . .' .' . .' .' .' .' .' .' .' .' .' .' .'[dayg previoiis to 

the expiration of the first named term, or any declared option.] 

14. That If required by Charterers, time not to commence before SSth April, 1916 and should 
Steamer not be ready for delivery on or before S!>th May next. Charterers or their Agents to hava 
the option of cancelling this Charier at any time not later than the day of Steamer's readiness. 

15. That in the event of the loss of time from deficiency of men or stores. Are. breakdown or damages 
to hull, machinery or equipment, grounding, detention by average accidents to ship or cargo, dry- 
fiocklng for the purpose of exiimlnation or painting bottom, or bv anv other cause preventing the full 
working of the vessel for more than 24 consecutive hours the payment of hire shall cease for the time 
thereby lost: and if upon the voyage the speed be reduced bv defect In or breakdown of any part of 
her hull, machinery or equipment, the time so lost, and the cost of anv extra coal consumed in conse- 
quence thereof, [and all extra expenses] shall be deducted from the hire. 

16. That should the Vessel be lost, money paid in advance and not earned (reckoning from the 
flate of loss or being last heard of) shall be returned to the Charterers at once. The act of God. 
enemles.lflre. restraint of Princes. Rulers and People and ail dangers and accidents of the Seas. Rivers, 
Machinery. Boilers and Steam Navigation, and errors of Navigation throughout this Charter Party, 
always mutually excepted. 

17. That .should any dispute arise between Owners and the Charterers, the matter In dispute shall 
be referred to three persons at New York, one to be appointed by each of the parties hereto, and the 
third by the two so chosen: their decision or that of any two of them, shall be final, and for the purpose 
of enforcing any award, this agreement may be made a rule of the Court. 

18. That the Owners shall have a Hen upon all cargoes, and all sub-freights for any amounts due 
under this Charter, and the Charterers to have a Hen on the Ship for aU moneys paid In advance 
and not earned, and any overpaid hire or excess deposit to be returned at once. 



196 OCEAN STFAMSHIP TRAFFIC MANAGEMENT 

FORM 62. — NEW YORK Produce Exchanqb Time Chartbb Partt iContinued) 

19. That all derelicts and salvage shall be for Owners' and Charterers' equal benefit after deducting 
Owners' and Clharterers' expenses and Crews' proportion. General average, H any, to be accordlnR 
to York-Antwerp Uules, 1!S!)0. 

If the Owners of the ship shall have exercised due diligence to make said ship In all respects sea- 
worthy, and properly nmunod, equipped and supplied. It Is hereby agreed that In ca.se of danger, damage 
or disaster resulting from fault or negligence of the pilot, master or crew. In the navigation or manage- 
ment of the ship, or from latent or other defects, or unseaworthiness of the ship, whether existing at 
time of shipment or at the beginning of t)hc 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 the Shipowner, shall contribute In General 
Average, .ind shall pay such special charges, as If such danger, damage or disaster had not resulted 
from such fnult, negligence, latent or other defect, or unseaworthiness. 

20. C^oais used by steamer while ofT hire, also for cooking, condensing water for crew's use, or for 
grates and stoves to be agreed to as to quantity, and the cost of replacing same, to be allowed 
by Owners. 

21. [That as the Steamer may be from time to time employed In tropical waters during the term of 
this Charter, Steamer is to be docked, bottom cleaned and painted whenever Charterers and Master 
think necessary, at least once In every six months, reckoning from time of last painting, and payment 
of the hire to be suspended until she is again In proper state for the service.) 

22. Owners shall provide gear (for all derricks) capable of handling lifts up to three tons, and 
maintain the gear of the ship as fitted, also provide ropes, fails, slings and blocks; but gear for heavier 
lifts shall be for Charterers' account. Owners also to provide lanterns and oil for nightwork, and 
steamer to give use of electric light, when so fitted. The Charterers to have the use of any gear on 
board the steamer. 

23. Steamer to work night and day. If required by Charterers, and all steam winches to be at 
Charterers' disi)osal during loading and discharging: steamer to provide men to work same day and 
night, as required. Charterers agreeing to pay winchmen, deck hands and donkeymen for work done 
between 6 p. m. and 6 a. m. and on Sundays, at the rate of ISc. per hour for winch operators and deck- 
hands, and 20c. per hour for Donkeymen. If the rules of the port, or labor unions, prevent crew from 
driving winches, shore winchmen to be paid by Charterers. In the event of short steam, or a disabled 
wlncli, or winches. Owners to pay for shore engine, or engines. In lieu thereof, If reqiilred, and. pay 
any loss of time occasioned thereby. 

24. It Is also mutually agreed that this Charter 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 Navigation of Vessels, etc. »nd also 
subject to the rules governing the Steamship Trade of the New York Produce Exchange. 

2j. Nothing herein stated is to be construed as a demise of the Steamer to the Time Charterers. 
The Owners to remain responsible for the navigation of the Steamer, Insurance, crew, and all other 
matters, same as when trading for their own account. 

26. A commission of Five per cent, upon the gross amount of this Charter, payable by the Steam- 
ship and Owners due to AND COMPANY, upon 

(the signing hereof] hire as earned Steamship lost or not lost, and also upon any continuation or 
extension of this Charter or on sale of Vessel. 

27. An address commission of 2H per cent, payable to Messrs dt Co. 

28. Penalty for non-performance of this Contract, estimated amount of damages. 



Agents. 

By cable authority from 

dated at 19 



For'and on behalf of the 

by cable authority of Messrs 

& Co., N. Y. 

(.Signed) A Co., 

As Agents 
Witness to thelslgnature of 

per pro & Co., 

(Signed) 29/4/16 

We Herebt Ckbtift the above to be altrue copy of the original Charter Party In our possession. 

BroKers 

Note: 

TIME CHARTER— SPECIALTCLAUSE. 
It is a condition of this charter and the charterers undertake that: — 

(1) The ship shall be employed only in such trades and employments and shall carry only sucll 
goods, persons and things as are lawful for a British ship and are not for the time belag prohibited 
by ills Majesty's Government. 

(2j The ship shall not be used nor be documented In any such way nor shall she carry any such 
cargo or any cargo so documented as would expose her to seizure or condemnation by Great Britain 
or any of her Allies. 

(3) There shall not be any breach of any of the warranties which are now or may during the con- 
tinuance of this charter be contained In the policies or contracts of Insurance of the ship with the War 
Risks Insurance Association in which the Ship isfentered. The warranties now contained la sucll 
policies are as follows: — 

(a) That the ship shall be employed In commercial trading. 

(b) That the ship shall not engage In any trade prohibited by His Majesty's Government or by 
the Committee of the Association, and shall comply as far as possible, with the orders of Hla 
Majesty's Government and the directions of the Committee as to sailing, routes, ports of call, 
stoppages, arrival and otherwise. 

(c) That the ship shall leave an enemy's port within the days of grace allowed by the enemy 
and shall comply with the terms of any pass granted by the enemy. 

(d) That the ship shall not enter or leave, or attempt to enter or leave, any port which Is known 
to be blockaded by the enemy. 

Upon breach of any of the conditions and undertakings mentioned In this clause, the owners shall 
have the right at any time to withdraw the ship from the service of the charterers, without prejudice 
to any claim they, the owners, may have on the charterers In pursuance or for breach of this charter. 

While the charter party reproduced in Form 61a, and analyzed 
above, is typical of the time charters in use at American ports, 
it varies sufficiently from others to emphasize the need of read- 



TIME CHARTER PARTIES 197 

ing the contents of time charters before signature is attached. 
The time charter approved by the New York Produce Exchange 
is reproduced in Form 62 for purposes of comparison. It differs 
from the charters shown in Form 61a and Form 61b, chiefly in its 
details, yet some of these details are of importance. The clause 
with respect to the appointment of a super cargo, for example, 
and those governing the loss of time due to deficiency of men or 
stores, fire, breakdown of machinery, etc., the performance of 
night work, the application of the shipping rules of the New 
York Produce Exchange, signature of bills of lading by captain 
and the rules governing payment of hire differ from the cor- 
responding clauses of the former charters. 

Government Time Charters 

During the war, when the Government acquired direct con- 
trol over a large number of vessels, the Shipping Board adopted 
a number of standardized time charters. Many privately owned 
vessels were requisitioned by the Board under the requisition 
charter reproduced in Form 63. It states that the vessel de- 
scribed in the charter has been requisitioned subject to three 
conditions: (1) that the terms and conditions under which the 
requisitioned vessel is to be operated shall be those contained 
in either the "time form" or the "bare-boat" form of the Ship- 
ping Board at the option of the United States ; (2) that the 
owner accepts these terms and conditions in full satisfaction 
of claims; and (3) that the United States may cancel the requi- 
sition charter on giving a written notice of five days when the 
"vessel is in a United States port." 

The time form provided for the operation of such requisi- 
tioned vessels differs from the commercial time charters ordi- 
narily in use principally in the following respects: (1) The 
period of time subject to cancellation as stated above is Hmited 
to six months after arrival of the vessel at an American port 
after peace is declared, unless it is required for Government 
purposes. (2) The United States is to provide any special equip- 
ment in addition to "that required for the vessel's previous usual 
service." (3) The crew shall so far as practicable consist of 
American citizens, the citizens or subjects of enemy or ally of 
enemy nations being excluded. (4) The charter rate shall be 



198 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

on a monthly basis determined from time to time by the United 
States Shipping Board, the owner, however, having the option 
on canceHng the requisition charter if the rate is fixed below 
that in effect on the date of requisition. In case the vessel 
loses time because of deficiency in crew or stores or other causes 
similar to those listed in a commercial time charter, the payment 
provided for is to be reduced to one-half until the vessel is again 
in an efficient state. (5) The United States agrees to reimburse 
the owner for any proper increases in wages and bonuses over 
the standard prevailing Aug. 1, 1917. (6) The United States 
agrees to bear the cost of insuring against war risks and spe- 
cial risks due to the use of the vessel elsewhere than on its 
usual voyages. The Government, moreover, assumes liability for 
marine losses in case the vessel becomes unseaworthy for rea- 
sons other than the neglect or misconduct of the owner or his 
agents; and upon giving a notice of five days the Government 
may assume all marine risks. The insurance clause also pro- 
vides that losses are presumed to be due to war risk if there is 
no evidence to the contrary ; and the owner is required to in- 
sure against "the usual protection and indemnity risks for the 
full protection of the owner and the United States, the expense 
thereof to be borne 50 per cent, by the owner and 50 per cent, 
by the United States." (7) The owners of passenger-carrying 
vessels operating under the time form are required to operate 
and maintain the salon mess, and if troops are carried a troop 
mess in which the meals are the equivalent of the regidar United 
States Army garrison ration, the United States in both cases 
being required to pay for these services "at reasonable rates to 
be fixed by the United States." (8) The vessel is to be subject 
to all the laws and regulations governing merchant vessels un- 
less it is taken over into the service of the War and Navy De- 
partment, when it shall have the status of a public ship and its 
officers and crew shall become the immediate employees and 
agents of and be absolutely under the control of the United 
States. Most requisitioned vessels were turned over to their 
owners or agents for operation under this time charter. 

Upon five days' written notice, however, any requisitioned 
vessel may be taken over for operation by the United States 
under what is known as the "bare-boat" form. Under this 
charter form the vessel is to be outfitted and equipped by the 



TIME CHARTER PARTIES 199 

owner and also be put into seaworthy condition by him, but 
the United States undertakes "at its sole expense (to) man, 
operate, victual and supply the vessel" ; also to pay all port 
charges, pilotages and other costs incident to the use and opera- 
tion of the vessel; and to assume all war, marine and other 
risks. Under the bare-boat form the owner receives pay for 
the use of his vessel at a monthly rate per deadweight ton, but 
the rate is lower than that paid under the regular time form 
as the increased services and risks assumed by the Government 
are taken into account. 



CODE WORDS: 

Requisition Charter — Retra U. S. S. B. CHARTER 

Time Form — Merof form no. 2 

Bare Boat Form — Erab 

UNITED STATES OF AMERICA 

REQUISITION CHARTER 



Name of Steamship 

Type of Steamship 

D. W. Tonnage 

Gross Tonnage 

Passenger capacity 

Knots per hour 

Date on which vessel entered into pay 

TMs Requisition Charier made and concluded upon in the District of Columbia the . . . .day of 1 

1917 between of 2 

of owner of the good American Screw Steamship 3 

of of tons gross register 4 

and tons net register, built in havlng^nglnos of 5 

nominal horsepower, provided with proper certificate for hull and machinery, and classed at 8 

of about cubic feet capacity and tons dead-weight 7 

capacity, summer freeboard, inclusive of permanent bunkers, capable of making an average voyage 8 

speed when loaded of linots an hour, under ordinary conditions, on a consumption of 9 

about tons of coal, or about barrels of oU per 2i hours; and the United 10 

States of America, through the United States Shipping Board— U 

WITNESSETH: 12 

Whebeas, by Requisition Order, dated 1917. pursuant to the Urgent Deficiency Act 13 

15 June. 1917, and the President's Executive Order 11 July, 1917, the United States has requl- 14 

sitioned the use of the steamship and the steamship has been delivered 15 

into possession of the United States pursuant to the RequiBitlon; and 19 

Whereas, it la fleelred by the United States and by the owner to fix the compensation (herein- 17 
after CAlled hire) which the United States shall pay to the owner for use of the steamship so requl- 18 
Bitioned, and to deflne by agreement the rights and duties of the United States and of the owner 19 
with respect to the operation of the vessel under the Requisition, and with respect to other matters 20 
tn conneetlon therewith: 21 

KOW. THEREFORE, IT IS AGREED AS FOLLOWS: 22 

Fir$t. The ternas and conditions under which the vessel is to be operated shall be those con- 23 
tained Iti the "Time Form" hereto annexed; provided, however, thr.t at the time of the Requisition 24 
or at any time thereafter, on Ave days' written notice, the United States may operate the vessel 25 
under the terms and conditions contstned in the "Bare Boat Form" hereto annexed, such operation 28 
to begin. when the steamship is In a United States port. 27 

Second. In consideration of the compensation provided and the other obligations assumed by 28 
the United States hereunder, the owner accepts this Requisition Charter in full satisf.ictlon of any 29 
and all claims he has or may haviy against the United States arising out of the Requisition and .30 
accepts the compensation herein provided for as the Just compensation required by law; provided, 31 
however, that the acceptance of this Requisition Charter shall be without prejudice to the claim, 32 
If any, the owner may have against the I'nlted States arising out of recoveries against the owner 33 
by third parties on the vessel's commitments. 34 

Third. Upon giving five days' written notice to the owner the United States may at any tlme,35 
when the vessel Is In a United States port, cancel this Requisition Charter without prejudice to 36 
the accrued rights of either party. 37 

Witness to the signature of 



By 

Witness to the signature of — The United States Shipping Board, 

By 

19284 17 

FOBU 63. — GOVERNMENT REQUISITION CHARTER 



200 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

When a requisitioned vessel is chartered, not to its owner but 
to another vessel operator, a different form of charter party is 
used by the Shipping Board. It is agreed that the vessel may 
not be sub-chartered without the written consent of the United 
States; that the charterer is to provide and pay for all items 
and assume all the risks and liability for which the United States 
is obligated under the requisition charter; that all settlements 
with the owner are to be made by the United States, but the 
charterer is to reimburse the United States within thirty days 
after vouchers are presented; that in case the vessel is lost and 
the United States under the requisition charter agrees to de- 
liver another vessel to the owner or obtain a building contract for 
him, the charterer is to pay the United States the value of the 
ship with interest at 6 per cent, per year beginning thirty days 
after date of loss ; and that the charterer is to pay the requisi- 
tion rate fixed by the Shipping Board for a vessel of correspond- 
ing description, and also an amount to cover overhead and other 
expenses borne by the United States. The United States under- 
takes that all the duties and obligations of the owner under the 
requisition charter may be carried out. This charter may be 
determined either by the United States or the charterer upon 
giving a notice of thirty days, the vessel then to be delivered at 
a United States port north of Hatteras in "as good order and 
condition as when received, ordinary wear and tear and dam- 
age due to the operation of risks assumed by the owner under 
the requisitioned charter excepted and free from all liens and 
claims for which the (charterer) is responsible." 

When the United States Shipping Board charters a vessel, 
not under requisition, still a different form of charter is exe- 
cuted. Since the element of compulsion is not dominant, condi- 
tions of this charter in such a transaction are similar to those 
of the usual commercial time charters, although they differ from 
the latter in certain respects. The Shipping Board agrees to 
assume loss or damage due to the operation of war risks, and 
it is given the privilege to equip the vessel with guns. The 
owner's lien for amounts due is restricted to "cargoes not owned 
by the United States and all sub-freight," the Shipping Board, 
however, having a lien on the ship for "all monies paid in ad- 
vance and not earned, and for any average claims against ship. 



TIME CHARTER PARTIES 201 

and any overpaid hire or excess deposit shall be returned at 
once." 

Government charters also include forms used for special types 
of vessels or to meet special conditions. There is, for example, 
a sailing vessel time charter; a special bare-boat charter to 
cover vessels chartered by the Shipping Board to the Emergency 
Fleet Corporation ; a rerequisition charter for tank steamers with 
an attached bare-boat form; a tank steamship requisition agree- 
ment and a supplemental requisition agreement for tank steam- 
ers; an agreement stating the "terms of employment of Dutch 
vessels" ; a uniform charter for Swedish steamers, and a "requisi- 
tion charter for tugs," with attached time and bare-boat forms. 



CHAPTER XIII 
TRIP OR VOYAGE CHARTERS 

When an ocean vessel is chartered for a single voyage or 
trip, a "trip charter party" is signed by the owner and charterer 
or their agents. The many different trip forms in use at Ameri- 
can ports may be grouped into three fundamental classes: (1) 
the gross form, (2) the net form, (3) modified gross or net 
forms. 

Gross Form Charter Parties 

The distinctive feature of the gross form charter is that the 
charter rate paid by the charterer to the owner covers the 
entire transportation service, including loading at shipping point 
and discharging at destination and also port charges. It re- 
quires the shipper to deliver his cargo where specified in the 
charter usually alongside the vessel, and the consignee to re- 
ceive it as specified; but within these limits the charter rate 
named in the gross form covers port charges and services as 
well as port to port transportation services and costs. 

The charters reproduced in Forms 64, 65 and 66 indicate the 
clauses usually contained in gross form charters and also make 
it clear that the provisions or conditions imposed in these clauses 
are subject to variations. As in case of time charters the man- 
ner in which the vessel is described or identified is not uniform, 
the full cargo berth terms grain charter shown in Form 65 
specifically requiring a statement of the vessel's classification 
under the rules of either British Lloyds or the French Bureau 
of Veritas and of its capacity expressed in terms of quarters of 
heavy grain, 10 per cent, more or less weight capacity and of 
cubic feet capacity for cargo. The berth terms grain charter 
moreover provides a range of American and European ports, 
any one of the former of which may be selected by the charterer 
and ordered in the bill of lading as the port of shipment and 
any one of the latter as the port of discharge upon payment 

202 



TRIP OR VOYAGE CHARTERS 203 

of the agreed charter rates or amount of freight, while the 
general trip charter shown in Form 64 and the coal charter re- 
produced in Form 66 leave blank space into which the ports of 
shipment and discharge are inserted when the charter arrange- 
ment is made. 

FoRU 64. — General Cargo Gross Form Charter Party 

THE GLOBE LINE 

GASTON, WILLIAMS & WIGMORE STEAMSHIP CORPORATION 
39 BROADWAY, NEW YORK 

THIS CHARTER PARTY, made and concluded upon In the Clty^of NEW YORK, the 

flay of in the year of our Lord one thousand nine hundred and 

between Agents for Owners of 

the good called the 

of classed of the 

measurement of tons net register, or thereabouts, 

now. of the first part, 

and of the second part. 

WITNESSETH that the Bald party of the first part agrees on the freighting and chartering of the 

eald (with the exception of the docli. cabin and necessary 

room for the crew, and the storage of provisions, sails, fuel and cables), or safHcient room for the 
cargo hereinafter mentioned, unto said party of the second part for a voyage from 

or so v^ttLT thereunto as she may safely get and there deliver her cargo on the terms following: 

1. The said shall be tight, staunch, strong and every way 

fitted for such a voyage, and receive on board during the aforesaid voyage, the merchandise here- 
inafter mentioned; and no goods or merchandise shall be laden on board otherwise than from the said 
party of the second part or Agent. 

2. The said party of the second part doth engage to provide and furnish to said 

a full and complete CARGO OF 

and to pay to said party of the first part, or Agent, for use of said vessel during the voyage aforesaid. 

3. The act of God, restraint of Princes, Rulers and People, fire and all and every other dangers 
and accidents of the seas, rivers and steam navigation of what nature and kind soever, riots, and 
strikes of pitmen, and all and every other unavoidable hindrances which may prevent the loading 
and delivery during the said voyage, always mutually excepted. 

4. It Is agreed that the lay days for loading and discharging shall be as follows: 

Consignees to receive cargo at port of discharge at the rate of not less than 

tons per running day. Sundays and Legal Holidays excepted. Lay days for loading and/or dis- 
charging to commence from the time the steamer Is ready to load 

and/or discharge cargo,!;and the master to give written notice of readiness. 



5. Also, that for each and every day's detention by default of said party of the second part, or 

Agent U. S. Gold per day. day by day, shall be paid by said party of the 

second part, or Agent, to said party of the flnst part, or Agent. 

6. Bills of Lading to be signed without prejudice to this Charter.lbut at not less than chartered 
rates. 

7. It Is mutually agreed that the Charterers' liability under this Charter shall cease when the 

cargo Is on board and BUls of Lading signed. The Master & Owners of the 

shall have an absolute lien upon the cargo for all freight, dead freight, and demurrage, and all and every 
other sum or sums of money which may become due the steamer under this Charter. 

8. It is also mutually agreed that this shipment is subject to all the terms and provisions of and 
all the exemptions from liability contained to the Act of Congress of the I'nlted States entitled 
"An Act relating to Navigation of Vessels, etc.," approved on the 13th day of February. 1893. Sea- 
worthiness warranted only so far as ordinary care can provide, and owners are not liable for loss, 
detention, or damage arising from latent defects existing at the time of sailing. If the owner of the 
ship s*-r^1I have exercised due diligence to make said .=;hlp In all respects seaworthy, and properly 
manneti. equipped and supplied. It i,s 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 ship 
or from latent or other defects, or unseaworthiness of the ship, whether existing at time of shipment 
or at the beginning of the 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 the 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 defect or unseaworthiness. General Average, if any, to be settled according to \ orii- 
Antwerp rules of 18SQ. 



204 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

FORM 64. — GENERAL CARGO GROSS FORM CHARTER PARTY (Continued) 

9. Lay days If required by Charterers, not to commcnro before 191 . . ; 

and should the not bo ready for cargo at her loadlriR port on or 

before 191 the ( Imrtcrcrs or their agents to have the option 

of cancelling this Charter Party at any time not lutor than the day of readiness. 

10.. to have liberty to tow and to be towed and to assist vessels 

In all'sltuatlons, also to rail at any port or ports for coal and/or other supplies. 

11. The cargo or cargoes to be received and delivered along-side the 

where she can load and discharge, always safely afloat within reach of her tackles; and lighterage, 
and also extra lighterage, 11 any, at the risk and expense of the cargo. 

12 to be discharged at'such wharf as charterers may designate, 

where steamer may always safely, lie afloat. 



13. Funds for the vessel's ordinary disbursements not to exceed one-half of the estimated freight. 
If desired by the party of the flr.st part or thuir Agents, to be advanced by the Charterers on account 

of the freight to the Master and Owners at Port of Loading. Paying per cent, to 

cover Interest, Insurance and commission. 

14. A commission of Ave per cent, on the amount of freight and demurrage Is due by the 

and Owners on signing of this Charter Party, ship lost or not lost, 

charter cancelled or not cancelled, to 

15. To the true and faithful performance of all and every of the foregoing agreements, we, 
the said parties, do hereby bind ourselves, our heirs, executors, administrators and assigns, each to 
the other In the penal sum of estimated amounttof freight. 

IN WITNESS WHEREOF, we hereunto set our hands, the day and year first above written. 
SIGNED IN THE PKESENCE OF 



WE HEREBY CERTIFY that the foregoing is a true and correct copy of the original Charter 
Party on flle In our Office. 

GASTON, WILLIAMS & WIGMORE STEAMSHIP CORPORATION 



Form 65. — New York Berth Terms Grain Charter Party 
(Pre-war Conditions) 

New York Produce Exchange. Approved Berth Term Contract, for Full Cargo Grain, of 1897 

BOWRING & COMPANY, SHIP BROKERS ^ 

17 STATE_ STREET 

New York, June SOth, 1914. 
MEMORANDUM OF AGREEMENT between Dominion Coal Co., Ltd.. Time Charterers (Agents 
for Owners) of the Norwegian Vessel " ALDEN" of Bcrocn of Z3J,0 tons net register, and guaranteed 

£6,000 Quarters of heavy grain 10 per cent., more or less, weight capacity, and about 

feet, cubic capacity for cargo, classed [100 A 1, at British Lloyds, or 3. 3. 1. 1. at French Veritas,] 
First Class Norweoian Veritas, now expected ready about July 2nd/Srd and Messrs. Ames Broots Co., 
of Duluth, Charterers. 

1. The Owners agree to let and the Charterers agree to hire the said Vessel for a voyage from 
Montreal to Rotterdam or Avonmouth (New York, or Philadelphia, or Baltimore, or from Newport 
News and/or Norfolk, at Ch.arterers' option (orders for flrst Loading Port to be given within twenty- 
four hours after receipt of notice of Vessel's arrival at Port of Call If coming in ballast, or prior to 
discharge. If coming to the United States with cargo) to London, Liverpool, Glasgow, Brkstol, 
Avonmouth. Manchester, Cardiff, Plymouth, Southampton, Dublin, Belfast, Hull. Leith, 
Newcastle-on-Ttne, Rotterdam, Amsterdam, Antwerp, Hamburg, Bremen, Dunkirk, or 
Havre] one port only, as ordered on signing Bills of Lading, on being paid a freight of two sMUings 
and three pence (.S/H) all In British Sterling, for each and every quarter of 4S0 pounds, English weight, 
dellvei-ed 

2. The Owners agree that the Vessel shall be tight, staunch and strong, and In every way Otted 
for the voyage. 

3. The Charterers agree to furnish a full and complete cargo of heavy grain, say wheat and/or 
corn and/or rye. [but reserve the privilege of shipping a full or a part cargo of flaxseed, and/or barley, 
and/or oats, in which case the Vessel is to receive same freight as it she had loaded a full and com- 
plete cargo of heavy grain, any saving In loading expenses to be for Vessel's benefit.] 

4. Notification of Ves-scl's readiness must be delivered at the oIHce of Charterers, or their Agents, 
at or before 4 P. M. (or at or before 12 M.. If on Saturday), Vessel also havhi? been entered at the 
Custom House, accompanied by pass of the Inspector of Vessel's readiness in all compartments, and 
the lay-days will then commence at 7 A. M. on the next business day, provided Vessel Is at loading 
place, as order'ni. otherwise days to count In accordance with the Rules governing at Port of Loading. 
Charterers' orders to move to loading place must be served on the Vessel's Agents by 5 o'clock P. M., 
(If on Saturday by 12 o'clock M.) of day of readiness or lay-days to begin. 

5. Vessel to haul to loading place or plajes. as ordered by c;harterers, but If ordered from her 
first loading place, the cost of this and any subsequent hauling to be paid by Charterers. (In case 
the Vessel loads at Newport News and/or Norfolk, the t;harterers have the privilege of shifting the 
Ves.sei between Newport News and Norfolk as often as may be required, they paying expenses 
Incurred, beyond those Incurred by the vessel In shifting once from her llrst to her second Loading 
Port, and allowing Owners for time lost In shifting on that account at the rate of thirty pounds (£30) 
British Sterling per day or part thereof.) 

> Clauses In [ ] were omitted from the printed form; those In italics were put In with typewriter. 



TRIP OR VOYAGE CHARTERS 205 

Form 65. — New York Berth Terms Grain Charter Party (.ContinueO) 
Steamer to pay elevator charges at loading -port if any. 

6. Charterers, or their Agents, shall have the option of cancelling this Charter Party If the 
Vessel be not ready to receive cargo on or before the 15tti July, 191 i. Such readiness shall Include 
the arrival of the Vessel at the Loading Port, entry thereof at the Custom House, and all compart- 
ments ready to receive cargo as shall be shown by the Master's written notification, accompanied 
by Underwriters' Surveyor's pass to that effect, which must be presented at the office of the 
Charterers, or their Agents, at or before 4 P. M., or If on Saturday before 12 o'clock noon of said 
day. This option to cancel shall be exercised not later than the presentation of the said Surveyor's 
pass of readiness. 

7. Lay-days, If required by Charterers, not to commence before 1st July, 191 Jt. 

8. Vessel to load and discharge at such wharf, place, or In such dock as may be named by Char- 
terers, or their Agents, provided that they are safe and customary places lor such berth Vessels to 
load and discharge. , 

9. [The Vessel to be loaded and] five (5) running days, except Sundays and holidays, to be allowed 
for loading and steamer to be discharged with customary berth dispatch, as applicable at Ports of 
(Loading and] Dlfjcharge, Owners paying any elevator charges at Port [or Ports] of Discharge necessary 
to Insure this, and If longer detained Charterers are to pay demurrage at the rate of 4d. i, British 
Sterling per net registered ton per day. 

10. This contract Is subject to all the conditions of the regular Berth Bill of Lading applicable 
to the Port of Discharge; and the Master, or person appointed by him, shall sign Bills of Lading as 
presented, without prejudice to his contract; any difference between Bills of Lading and the freight 
due vessel under this agreement is to be settled at Loading Port before clearance; If In favor of the 
vessel. In cash at the current rate of exchange, less Insurance; If In favor of Charterers, by draft of 
Master upon his consignees, payable five days after arrival at Port of Discharge. Charterers' 
liability to cease on cargo being shipped and difference of freight and/or demurrage. If any, paid, 
vessel having a lien on the cargo for freight. 

Charterers' stevedores to be employed at current rates for loading. 

If steamer is ordered to Avonmouih. cargo to be discharged in accordance vHth the rriles of the Bristol 
Channel and West Coast of England Corn Trade Association. 

Receivers of the cargo are in no case obliged to take delivery of the cargo at night without their consent 
and in any event steamer must bear all extra expenses incurred by workirig at night. 

11. The act of God, restraint of rulers and people, war. fire, epidemics, strikes, and all and every 
danger and accident of the seas, canals, rivers, and of navigation, always mutually excepted. It 
Is also mutually agreed that this agreement Is subject to all the terms and provisions of, and all 
the exemptions from liability contained In the Act of Congreps of the United States, approved on the 
13th!, day of February. 1893, and entitled "An Act relating to Navigation of Vessels, etc." General 
Average shall be adjusted according to York-Antwerp Rules, 1890. 

12. This agreement Is made subject to the Rules of the New York Produce Exchange, and all 
disputes arising at the Port of Loading shall be submitted to arbitration at New York, aa therein 
provided. 

13. A commission of two and one-half per cent. (2H per cont.)tand the customary freight broker- 
age Is due by Owners on signing this agreement to BOWRING & COMPANY, vessel lost or not 
lost, who or whose Agents at Port of Loading are to attend to ship's business on customary terms. 

(Signed) BOWRING & COMPANY, 

Witness to the Signature of R. N. Blact, Asst. Manager, S. B. Dept. 

ISigned) B. T. Young As Agents by telegraphic authority of Mr. J. R. Mclsaac, O.T.M. 

Dominion Coal Co., Ltd. 

Witness to the Signature of (.Signed)2Ame3 Brooks Co., 

per Julitu H. Barna. 
A true copy: 

~' '"' Brokers. 

Note. — Wherever the tcord "Owners" appears in this charter party it i» understood to mean ^"Time 
Charterers." 

FOBM 66. — Gross Form Coal Charter Party (Short Trips Alono Coast and to West Incibs) 

TRIP CHARTER PARTY ^ 

FORM Z-6-6-14 

BOWRING & CO. 
17 BATTERY PLACE, NEW YORK 

S. S. AGENTS AND SHIP BROKERS 

THIS CHARTER PARTY, made and concluded upon In the City of NEW YORK, the 18th 
day of September In the year of our Lord one thousand nine hundred and fifteen between Messrs. 

<fe Co., Agents for Time Charterers [Owners] of the 

Eood Steamship called the of Bergen, classed A 1 at 

Norwegian Veritas [Lloyds] of the measurement of 747 tons net reglster.!or, thereabouts, now trading 

of the first part, and The Co., of St. Johns. N. F., 

of the second part. 

WITNESSETH, that the said party of the first part agrees on the frelghthig and chartering of the 
said steamer (with the exception of the cabin and necessary room for the crew. and".the storage of 
provisions, sails, fuel and cables), or sufQclent room for the cargo hereinafter mentioned, unto said 

party of the second part for a voyage from Philadelphia. Pa., to St. Johns. N. F 

orfco near thereunto as she may safely get and there deliver her cargo on thelterms following: 

1. The said steamer shall be tight, staunch, strong and every way fitted for such a voyage, and 
receive on board during the aforesaid voyage, the merchandise hereinafter mentioned; and no goods 
or merchandise shall be laden on board otherwise than from the said party oflthe second part or Agent, 
unless otherwise mutually agreed. 

2. The said party of the second part doth engage to provide and furnish to said steamer a full 

and complete CARGO OF coat, say about ISOO tons 

and to pay to said party of the first part, or Agent, for use of said vesseljdurlng the voyage afore- 
said two dollars and fifty cents per ton of 2S40 lbs. of coal delivered, payable'at port of discharge in United 
States gold or its ei7iivalent, free of discount or Interest, upon delivery of cargo. Charterers are not 
to be liable for freight on cargo lost or Jettisoned. 

» Clauses In [ ] were omitted from the printed form; those In Italics were put In with typewriter. 



206 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Form 66. — Gnoss Form Coal charter Party (Short Trips Alono Coast and to 
West Indies) (.Continued) 
3. The act of God, restraint of Princes, Rulers and people. Are and all and every other dangers 
and accidents of the seas, rivers and steam navlKatlon of what nature and kind soever, rlota, and 
strikes of pitmen, and all and every other unavoidable hindrances which may prevent the loading 
and delivery durins the said voyage, alwaysmutually excepted. 

■1. It Is agreed that the lay days for loading and discharging shall be as follows: Steamer to take 
her turn In loading, as customary, and cargo to be loaded with customary despatch. Steamer to pav 
cost 0/ trimming. 

Consignees to receive cargo at port of discharge at the rate of not le3.s than five hundred (.600) tons 
per running day, Sundays and Legal Holidays excepted. Lay days for dl.scharglng to commence 
from the time the steamer l.s ready to discharge cargo. Cargo is to be discharged by steamer at her oicn 
expense. Charterers undertating that the cost of stevedoring shall not exceed Iwentv-flee cents per ton. 
it is undirslood that steamer is to give free use of steam, winches and men to run winches. Charterer! 
to have option of appointing stevedore if they so desire. 

5. Al.so, that for each and every day's detention by default of said party of the second part, or 
Agent, $150.00 [cents] U. S. Gold (per net register ton] per day, day by day, shall be paid by said 
party of the second part, or Agent, to said party of the fir.st part, or Agent. 

6. Bills of Lading to be signed without prejudice to this Charter, but at not less than chartered rates. 

7. [This charter being entered into on behalf of other parties. It Is hereby mutually agreed tJiiat 
the liabilltj' of the Freighters and Shippers under this charter shall cease upon the loading of the 
cargo.] Steamer to have a lien upon the cargo tor all treight, dead freight and demurrage, and all 
and every other sum, or sums of money which may become due the steamer under this charter. 

8. It is also mutually agreed that this shipment 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 entitled "An 
Act relating to Navigation of Vessels, etc.," approved on the 13th day of February, 189.3. Seaworthi- 
ness warranted only so far as ordinary care can provide, and owners »re not liable for loss, detention, 
or damage arising from latent defects existing at the time of sailing. It the owner of the ship shall 
have exercised due diligence to make said ship 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 ship, or from latent 
or other defects, or unseaworthiness of the ship, whether existing at time of shipment or at the begin- 
ning of the 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 the Shipowner, shall contribute In General Average, and shall pay such special charges, as 
If such danger, damage or dl.saster had not resulted from such fault, negligence, latent or other defect 
or unseaworthiness. General Average. If any, to be settled according to York-Antwerp rules of 1890. 

9. Lay days If required by Charterers, not to commence before September S5th. 1915, and should 
the steamer not be ready for cargo at her loading port on or before Oriober 10th. 1915, the Charterers 
or their agents to have the option of cancelling tnls Charter Party at any time not later than the 
day of steamer's readiness, 

10. Steamer to have liberty to tow and to be towed and to assist vessels in all situations, also to 
call at any port or ports for coals and/or other supplies. 

11. The cargo or cargoes to be received and delivered alongside the steamer, where she can load 
and discharge, always safely afloat within reach of her tackles; and lighterage, and also extra lighterage. 
If .'my, at the risk and expense of the cargo. 

12. Steamer to be discharged at euch wharf as charterers may designate, where steamer may 
always safely lie afloat. 

Steamer to be coruigned to Charterers or their agents at port of discharge, free of charge for attendance. 

."Steamer to be fret of wharfage charges at St. Johns. 

].■?. A commission of five per cent, on the amount of freight and demurrage is due by the Steamer 
and Owners on signing of thli Charter Party, ship lost or not lost, charter cancelled or not cancelled, 
to BOWRING 4 CO. 

14. To the true and faithful performance of all and every of the foregoing agreements, we, the 
said prrtlos, do hereby bind ourselves, our heirs, executors, administrators and assigns, eacb to the 
other. In the penal sum of estimated amount of freight. 

In Witness Whbmof, we heretmto set our hands, the day and year first above written. 

(Sigwii) <t CO.. 

As Agents for Ovmers. 

(Signed) Witness to the signature of (Signed) 

As Agentt for the Company. 

We Hereby Cebtht that the foregoing Is a true and correct copy of tlie original Charter Party 
on file in our office. 

Note. — Wherever the word "OWNERS" occurs in this charter, same refers to "TiKe Cbartertrs." 

The charter rate or freight paid to the owner under a trip 
charter is usually based upon the amount of cargo carried, sub- 
ject to the proviso that the cliarterer is to provide a full and 
complete cargo. So in the above-mentioned gross form grain 
charter, payment is made at a defined rate per quarter of 480 
pounds, English weight, delivered where specified in the charter. 
The general charter reproduced in Form 64 contains a blank 
into which the rate per ton of cargo or other defined unit of 
cargo, depending upon what commodity is being shipped, is 
inserted and the coal charter rate is based upon cargo tons of 
2,240 pounds. Trip charters basing freights upon tonnage of 



TRIP OR VOYAGE CHARTERS 207 

the vessel are exceptions to the general practice of basing them 
upon cargo tonnage. 

The freight clause of a trip charter is accompanied by various 
clauses further defining the rights and duties of owner and 
charterer. Among them there is the so-called "warranty" clause 
providing that the vessel "shall be tight, staunch, strong and 
every way fitted for the voyage." Another obligates the charterer 
to provide a full and complete cargo of the kind of cargo 
definitely specified, or in case of the berth terms grain charter 
of Form 65, of wheat, corn or rye, the charterer, however, hav- 
ing the privilege of shipping a full or part cargo of flaxseed, 
barley or oats at the same charter rate with the understanding 
that any saving in loading expenses due to such substitution is 
to be "for vessel's benefit." A bill of lading clause requires 
the captain to sign bills of lading as presented by the charterer, 
the freight charges in such bills of lading, however, being sub- 
ject to restrictions. In Form 64, for example, it is provided that 
they may not total less than the freight agreed upon in the 
charter. In Form 65 there is a corresponding proviso to the 
effect that "any difference between bills of lading and the freight 
due vessel under this agreement is to be settled at loading port 
before clearance ; if in favor of vessel, in cash at the current rate 
of exchange less insurance; if in favor of charterers, by draft 
of master upon his consignees, payable five days after his ar- 
rival at port of discharge." The coal charter provides that the 
"owner's regular bills of lading (are) to be signed conformed 
to this charter." The bill of lading clause in the charters shown 
in Forms 64 and 65 specifically provide that bills of lading are 
signed without prejudice to the charter party and this is the 
usual practice. 

Another clause provides that the owner has a "lien upon 
the cargo for all freight, dead freight and demurrage and all 
and every sum or sums of money which may become due the 
steamer under this charter." The term dead freight refers to 
the difference between the freight due the vessel as per the 
charter rates when applied to a full and complete cargo as pro- 
vided for in the charter, and a smaller amount based upon a cargo 
which is not full and complete. The owner is entitled to the 
entire amount regardless of the charterer's failure to ship a full 
and complete cargo. Demurrage refers to the agreed payments 



208 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

per day for which the charterer or his agent is Hable in case 
the vessel is detained by default of the charterer to deliver the 
cargo when loading or to receive it when discharging within 
the number of lay-days agreed upon. 

The so-called "lay-day" clauses specify the number of days 
allowed for loading cargo, and sometimes also for unloading; or 
the number of tons per day to be loaded or discharged. They 
may begin from the time the vessel "is ready to load or dis- 
charge, and the master to give written notice of readiness," and 
there may be provisions requiring such notification of readiness 
to be delivered at the office of the charterer or his agent at or 
before a certain hour of the day, the lay-days to begin at a 
stated hour on the next business day. There may also be a 
clause to the effect that if the charterer requires, lay-days shall 
not commence before an agreed date. Charters also provide 
whether lay-days shall be "running-days" which are consecu- 
tive, legal holidays and Sundays excepted; or "working days," 
which include only such days as are customarily devoted to 
loading or unloading at the ports of loading or discharge. The 
lay-days clauses of some charters further provide for the pay- 
ment by the owner to the charterer of "dispatch money" at fixed 
rates for each lay-day not used. 

Still another clause of importance specifies where the cargo 
is to be delivered by the charterer and where it shall be received 
at port of discharge. In Forms 64 and 65 it is provided that it 
shall be alongside the vessel "always within reach of her 
tackles" ; and that "lighterage and also extra lighterage, if any, 
(shall be) at the risk and expense of the cargo." The wharf, 
dock or place for loading and discharging may be named by the 
charterer or his agent, provided it is a safe place for the ves- 
sel and one customarily used for such purpose. Form 64 further 
provides that if the vessel is ordered to load at more than one 
loading place, the "cost of this and any subsequent hauling (is) 
to be paid by the charterers"; if the vessel is ordered to shift 
several times between Norfolk and Newport News, the charterers 
are required to pay the "expenses" incurred beyond those in- 
curred by the vessel in shifting once from her first to her second 
loading port and to allow the "owners for time lost in shifting 
on that account at the rate of thirty pounds British sterling per 
dry or part thereof." In the coal charter it is also provided that 



TRIP OR VOYAGE CHARTERS 209 

extra expense inrcurred by reason of working the vessel on Sun- 
days or holidays shall be for the account of the vessel if at the 
loading port and for the account of the cargo if at the dis- 
charging port, subject to the proviso that if such extra expense 
is incurred after the agreed lay-days have expired it shall be 
borne by the cargo whether at loading or discharging port. 

While the demurrage and lighterage charges, the costs or 
allowances paid when the vessel is asked to load at more than 
one wharf or loading place and the extra expense due to work 
on Sundays and holidays, are port charges for which the 
charterer is liable over and above the agreed charter rate, they 
are special and contingent in character and do not alter the 
original statement that the charter rate in a gross form charter 
party covers the cargo transportation, loading and discharging 
and also port charges. Lighterage charges are not included be- 
cause the charter requires the delivery and receipt of cargo 
alongside the vessel ; charterers' demurrage which is designed 
to speed up loading and discharging must, to accomplish its 
purpose, be excluded from the charter rate agreed upon when 
the charter is signed ; and expenses or allowances for extra, 
shiftings of the vessel are not included because the charter rate 
is based upon a voyage during which there will be but one load- 
ing and discharging place or not more than such larger numbers 
as may be specifically stated in the charter. It frequently hap- 
pens, however, that the charterer does not, at the time the 
charter is signed, know exactly where the cargo is to be loaded 
and unloaded. The exclusion of extra shiftings from the charter 
rate widens the charterers' option as to loading and discharging 
places and protects the owner against unnecessary requirements. 

Trip charters also contain a cancellation clause. In Form 64 
this clause provides that in case the vessel is not ready for 
cargo at her loading pier before a stated date, the charterer 
or his agent has the option of canceling the charter party at 
any time not later than the day of the vessel's readiness. In 
Form 65 the cancellation clause likewise confers upon the 
charterer the right to cancel if the vessel is not ready before a 
stated date, but not later than the presentation of the under- 
writers' surveyor's pass of readiness. Readiness is specifically 
defined to include not only the arrival of the vessel at loading 
port but also entry at the custom house, written notice by the 



210 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

captain that all compartments are ready to receive cargo, and 
presentation of a pass to that effect issued by the underwriters' 
surveyor. The coal charter contained in Form 66 permits the 
charterer to cancel at any time not later than the day of readi- 
ness if the steamer is not ready to receive cargo by a specified 
date ; and if the cargo license covering the coal shipment has 
not been received or is revoked, the charterer may cancel "not 
later than the date of steamer's arrival at loading port by pay- 
ing six days' demurrage in full liquidation of damages to 
owners." Cancellation is also permitted under this charter "at 
any time while the steamer is waiting for cargo by paying de- 
murrage, counting time on demurrage from time of steamer's 
arrival and adding six days' demurrage thereto." 

Other customary clauses are those ending the charterer's lia- 
bility under the trip charter when the cargo is on board and the 
bills of lading are signed ; and those limiting the owner's lia- 
bility for loss, damage or detention in accordance with the Harter 
Act of February 13, 1893, and in accordance with other condi- 
tions especially named in the charter. As in case of time 
charters, an examination of the trip charters reproduced in 
this chapter will show that these liability clauses have not been 
standardized. There may also be clauses providing for the 
settlement of disputes by arbitration ; the application of the rules 
at the ports of named local associations ; the making of advances 
by the charterer on account of the freight to cover the vessel's 
ordinary disbursements ; the payment of an address or agency 
fee to the charterer or his agents in case they attend to the 
ship's business at ports of loading or discharge ; and the pay- 
ment of a commission to the ship broker, "ship lost or not lost, 
charter canceled or not canceled."^ 

Net Form Charters 

The difference between the gross and net form of trip charters 
lies in the clauses which establish the responsibility of owner 
and charterer. The charter rate paid by the charterer under 
the net form covers only the actual transportation of the cargo 
and the owner is responsible only for such service. The char- 
terer is required to assume the cost not merely of placing the 

*See chapter XII p. 194. 



TRIP OR VOYAGE CHARTERS 211 

cargo alongside the vessel but of loading it aboard the vessel, 
of stowing it, and of discharging it at destination. He is also 
called upon to pay port charges, customs and harbor dues at 
the port of loading from the time the vessel is ready to receive 
cargo, and similar charges incurred at the port of destination. 
A comparison of the net form charter in Form 67 with the 
gross form charter in Form 64 will show that the various clauses 
are identical except that the lay-day clause (No. 4) has ap- 
pended to it the following highly important provision : "char- 
terers to load and discharge cargo at their expense, paying all 
outward port charges, customs and harbor dues at port of load- 
ing, and all inward port charges, customs and harbor dues or 
other foreign port dues in whatever nature at port or ports 
of discharge" ; and except that Clause No. 1 1 regarding receipt 
and delivery of cargo and lighterage expense is supplemented 
w'ith the following sentence: "Charterers shall pay all costs of 
wharfage at both loading and discharging ports." 

The net grain charters reproduced in Forms 68a and 68b may 
likewise be compared with the gross form berth terms charter 
shown in Form 65. While the clauses of these charters differ 
in various respects, the outstanding differences which indicate 
that the former is a net form charter are found in Clauses 10 
and 11. Clause 10 provides that "charterers, are to load, stow 
and trim the cargo at their own expense, under the direction of 
the master, but they shall not be responsible for improper stow- 
age. Charterers to pay all port charges incidental to the outward 
cargo at loading port or ports, including elevating, stevedore, 
wharfage and tarpaulins, and to provide and fill sacks required 
to secure bulk grain, also dunnage mats, if required, and to 
provide an agent for custom house business, but owners to pay 
all port and other charges at loading port until steamer arrives 
at loading berth." Clause 11 likewise requires the "charterers' 
agents to pay cost of discharging cargo, pilotage, and all port 
charges incidental to their cargo at the discharging port or 
ports to which steamer may be ordered, and to provide an agent 
for the custom house business, free of commission. If owners 
employ tally clerks for receiving or delivering cargo, charterers' 
tally clerks to have preference at equal rates." In this charter 
various special charges are separately arranged for. Thus "if 
the steamer discharge at Newport, Mon., and after discharging 



212 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

FORM fl7. — GEhnBRAL. Cargo Nbt Form Chartir Partt 

THE GLOBE LINE 

GASTON, WILLIAMS & WIGMORE STEAMSHIP CORPORATION 
39 BROADWAY, NEW YORK 

THIS CHARTER PARTY, made and concluded upon In the City of NEW YORK, the 

flay of In the year of our Lord one thousand nine hundred and 

between Agenta for Owners of the good 

called the of 

classed of the 

measurement of tons net register, or thereabouts, now 

of the first part, and of the second part. 

WITNESSETH that the said party of the first part agrees on the freighting and chartering of the 

Bald (with the exception of the deck, cabin and necessary 

room for the crew, and the storage of provisions, sails, fuel and cables), or sufflcleut room for the 
cargo hereinafter, mentioned, unto said party of the second part for a voyage from 

or 80 near thereunto as she may safely get and there deliver her cargo on the terms following: 

1. The said shall be tight, staunch, strong and every way 

fitted for such a voyage, and receive on board during the aforesaid voj'age. the merchandise herein- 
after mentioned; and no goods or merchandise shall be laden on board otherwise tbaa from the aald 
party of the second part or Agents. 

2. The said party of the second part doth engage to provide and furnish to said 

a full and complete CARGO OF 

and to pay to eald party of the first part, or Agent, for use of said vessel during the voyage aforesaid. 

3. The act of God. restraint of Princes. Rulers and people, fire and all and every other dangers and 
accidents of the sca.s. rivers and steam navigation of what nature and kind soever, riots, and strikes 
of pitmen, and all and every other unavoidable hindrances which may prevent the loading and delivery 
during the said voyage, always mutually e.xcepted. 

4. It Is agreed that the lay days for loading and discharging shall be as follows: 

Consignees to receive cargo at port of discharge at the rate of not less than 

tons per running day. Sundays and Legal Holidays excepted. Lay days for loading and/or dlaoharslng 

to commence from the time the steamer Is ready to Toad 

and/or discharge cargo, and the master to give written notice of readiness. Cfiartereri to load and 
discharoe cargo at their expense, paying all outward port charges, customs and harbor dues at port of 
loading, and all inward port charges, customs and harbor dues, or other foreign port dues in tchateter 
nature at port or ports of discharge. 

5. Also, that for each and every day's'detentlon by default of said party of the second part, or 

Agent U. S. Gold per day. day by day, shall be paid by aald party of the 

second part, or Agent, to said party of the first part, or Agent. 

6. Bills of Lading to be signed without prejudice to this Charter, but at not less than chartered 
rates. 

7. It Is mutually agreed that the Charterers' liability under this Charter shall cease when the 

cargo Is on board and Bills of Lading signed. The Master and Owners of the 

shall have an absolute lien upon the cargo for all freight, dead freight, and demurrage, and all and 
every" other sum or sums of money which may become due the steamer under this Charter. 

8. It Is also mutually agreed that this shipment is subject to all the terms and provlBions of and 
all the exemptions from liability contained In the Act of Congress of the United States entitled "An 
Act relating to Navigation of Vessels, etc.," approved on the 13th day of February. 1893. Sea- 
worthiness warranted only so far as ordinary care can provide, and owners are not liable for loss, 
detention or damage arising from latent defects existing at the time of sailing If the owner of the 
ship shall have exercised due diligence to make said ship 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 erew, In the navigation or management of the ship 
or from latent or other defects, or unseaworthiness of the ship, whether existing at time of shipment 
or at the beginning of the 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 the 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 defect or unseaworthiness. General Average, if any, to be settled 
according to York-.^ntwerp rules of 1S90. 

9. Lay days If reciuired by Charterers, not to commence before 

191 and should the not be ready for cargo at her 

loading port on or before 191 the Charterers or 

their agents to have the option of cancelling this Charter Party at any time not later than the day 
of readiness. 

10 to have liberty to tow and to be towed and to aMlft 

vessels In all situations, also to call at any port or ports for coal and/or other supplies. 

11 The cargo or cargoes to be received and delivered along-side the 

where she can load and discharge, always safely afloat within reach of her tackles; and lighterage, 
and also extra lighterage. If any, at the risk and expense of the c&Tgo.&Charterers thall vay aU eo$U 
of wharfage at both loading and discharging ports. 

12 to be discharged at suchTwharfSas charterers 

may designate, where steamer may always safely lie afloat. 

13. Funds for the vessel's ordinary dlsbiirsements not to exceed one-half of the estimated frelgbt. 
If desired by the party of the first part or their Agents, to be advanced by the Charterers on account 

of the freight to the Master and Owners at Port of Loading. Paying per cent. 

to cover Interest, insurance and commission 

14. A commission of five per cent, on the amount of freight and demurrage 1b due by the 

and Owners on signing of this Charter Party, ship loat 

^Inot lost, charter cancelled or not cancelled, to 



TRIP OR VOYAGE CHARTERS 213 

Form 67. — General Cargo Net Form Charter Party {Continued) 

"is. ' To the true and faitWui performance of ail and every of the foregoing agreements, we, the 
Bald parties, do hereby bind ourselves, our heirs, executors, administrators and assigns, each to the 
other In the penal sum of estimated amount of freight.. 

IN WITNESS WHEREOF, we hereunto set our hands, the dayrand yearlflrst above written. 
SIGNED IN THE PRESENCE OF 



WE HEREBY CERTIFY that the foregoing Is' a true and correct copy of the original Charter 
Party on file in our Office. 

GASTON, WILLIAMS & WIGMORE STEAMSHIP CORPORATION. 



FoBM 68a. — New York Net Grain Charter Party (Pre-Wab Conditions) 

NET GRAIN CHARTER 

BOWRING & CO. 

17 BATTERY PLACE 

NEW YORK 



IT IS THIS DAY MUTUALLY AGREED, between 

Agents for Owners of the Steamship of . . . . 

net register, British measurement; classed now. 



and Charterers, as follows: 

'1. — That the said steamship being tight, staunch and strong, and In every way fitted for the voyage 
(and according to Builders' scale and plan, which Owners believe to be correct, but da not guarantee, 

able to carry tons [2,240 lbs.] of wheat or maize, in addition to necessary 

bunker coal, and having cubic feet, grain space, available for such 

cargo) , shall proceed to for orders, the 

same to be given at once by Charterers on receipt of the Captain's telegram advising vessel's arrival 
there; to load at 

according to custom of port, a full and complete cargo of wheat and/or maize and/or other lawful 
merchandise, including deckload at shipper's risk, which Charterers bind themselves to furnish, and 
being so loaded shall therewith proceed, as ordered when signing bills of lading, to a safe port in the 
United Kingdom, or Continent, between Bordeaux and Hambtirg, both inclusive (Rouen excluded) 



or so near thereunto as she may safely get, and there, always afloat, deliver the cargo as customary 
at such wharf, dock or other safe place as Charterers' Agents may direct on arrival, in accordance with 
Bills of Lading, in consideration whereof Charterers shall pay the vessel freight as follows: 

Bhlllings pence. Sterling, per ton, If to a port in the United; Kingdom 

or Continent, between Bordeaux and "Hamburg 
both inclusive (Rouen excluded). 

shillings pence. Sterling, per ton, if 

shillings pence. Sterling, per ton, if 



2. — Charterers agree to load the vessel to full draft allowed by Underwriters' Surveyors, failing 
which they are to pay dead-freight for the number of tons, short shipped, as shown by the excess 
buoyancy. 

3.^ — Steamer to have liberty to sail with or without pilots, and to tow and assist vessels In all 
situations, also to coal at Norfolk or Newport News, !u which case Charterers or their Agents have the 
option of giving orders there; said orders to be given within 12 hours of arrival, or lay days to count, 
and for purposes of Freight to be considered as given on signing Bills of Lading. Captain to give 
written notice before sit-'ning Bills of Lading, whether he calls for coal or not, and at which coaling 
station. Steamer to have liberty to coal at a port in the United Kingdom or Coptnliagen, if ordered 
to Denmark, Sweden or the Baltic; or at Gibraltar, if ordered to the Mediterranean or Adriatic. 

4. — If ordered to Denmark, orders for the second port. If used, to be given on signing Bills of Lading, 
or after arrival at the first port at Charterers' option. 

5. — Should the Steamer be ordered to discharge at a port on the Continent, excepting Rouen, 
where there is not sufficient water, under normal conditions, for the Steamer to enter first tide after 
arrival, and to lie always afloat, lay days are to count from 24 hours after notice of arrival at nearest 
safe ciii^'omary anchorage, and any lighterage incurred to reach the port of discharge is to be at the 
e.xpense and risk of the receiver of the cargo, any custom of tlio port to the contrary notwithstanding. 

6. — Should the Steamer be ordered to a port of dlscharce in the Sound, Sweden, Denmark, or the 
Baltic, Inaccessible by reason of Ice on the Steamer's arrival, the Master shall have the option of 
waiting imtil the port is again open, or of proceeding to the nearest sate open port or roadstead 
(telegraphing his arrival there to Charterers), where he shall receive fresh orders for an open and 
accessible port of discharge, within said Countries or in the United Kingdom or Continent, as above, 
within 24 hours of arrival, or lay days to count. If so ordered, the Steamer shall receive the same 
Freight as If she had discharged at the port to which she was originally ordered. 



214 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Form 68a. — New York Net Grain Charter Partt (Pre-war Conditions) (ContinueO) 

7. — FrclRht payalilo per ton of 2,240 lbs. delivered on rlcht delivery of cargo. In cash. If at a port 
In the I'nltcd Kinj,'ili)ni, or at current rate of exchange for bankers' .short .sight bills on London If 
In ail'' (ithor cmintry. 

8. — f hartrror.s to have 'he privilege of deslfrnatInK wharves or other safe places for loafllnc or dls- 
charRliii;. The rarso Id In- brouRht to. and luKrii fro'u iilonKSldo the .steamer, at Mcrr-h;ints' risk 
Snd expense. Steamer to stii)ply .steam and winchmen to drive winches, and to give use of necessary 
Rear, aiao to load or dlschnrKi- «t iil^ht, im Sundays or holidays or on day when notice Is Klven If 
required by t'hanerers, KU'h thne not counllnt'. they paying all extra expenses and labor Incurred, 
Includlnc overtime of winchmen. 

9. — ("usb for Captain's ordinary disbursements at port of loading to be advanced. If required. 
Steamer paving two-and-a-half per cent, commission and cost of Insurance thereon, the amount of 
advance" to be covenvl by captains draft payable three days after ship's arrival at port of discharge 
out of freight and on which the draft shall form a lien. 

lO.^Ch.artcrers are to load, stow and trim the cargo at their own expense, under the direction of 
the Master, but Ihi'y shall not be rciponsiblj for huproper stowage. Charterers to pay all port charges 
incidental to the outward cargo at loading port or ports. Including elevating, stevedore, wharfage and 
tarpaulins, and to provide and fill sacks required to secure bulk grain, also dunnage mats. If required, 
and to r'rovkie an agent for Custom House business, but ow-ners to pay all port and other charges at 
loading port until steamer arrives at loading berth. 

II.- — Charterers' Agent to pay cost of dUcharging cargo, pilotage, and all port charges Incidental 
to their cargo at the discharging port or ports to which Steamer may be ordered, and to provide an 
agent for the Custom HoiLse business, free of commission. If owners employ tally clerks for receiving 
or delivering cargo. Charterers' tally clerks to have the preference at equ.tl rates. If steamer dis- 
charge.? at Newport. Mon., and after discharging loads outward cargo there, the Newport dock dues 
(covering Inward and outward entries) to be borne equally by charterers and owTiers. Towages at 
discharging ports, other than assisting to berth or berths, to be for owners' account. 

12. — Charterers to have use of any dunnage or mats, etc., as may be aboard. 

13. — "The Steamer shall be consigned to Charterers' Agents at ports of loading and discharge, and 
shall employ their Broker to attend to the Ship's business, free of commission. 

14. — The Captain shall sign bills of Lading or Master's Receipts as and when presented, without 
prejudice or reference to this Charter-party, and any difference between the amount of Freight by the 
Bills of Lading and this Charter-party, to be settieii at port nt loading before sailing, as customary. 

15. — Lay days at port of loading are not to count before the unless 

with Charterers' -written consent, and to commence on the day following receipt by Charterers' .\gent3 
of Captain's written notice of readiness, accompanied by Surveyor's Certificate. Should the-Steamer 

not be ready to load on or before noon of the Charterers 

have the option of cancelling this Charter-party. 

16. — running days (Sundays and holidays 

excepted) sliall be allowed the Charterers for loading and discharging. Should the cargo not be 
delivered to Vessel at loading ports and/or discharged at port or porta of destination within the 
specified time, for each and every day over and above said lay days, Charterers are to pay, day by day, 

the sum of per day demurrage, any detention 

through Quarantine to vessel or cargo, not to count In lay days. If sooner dispatched, steamer to 
pay for each day saved. 

17.- — The clauses herein regarding payment of port charges, stevedores, etc., at ports of loading 
and discharging refer only to such charges as are ordinarily Incurred, any extra expenses caused by tho 
steamer being under average, are to be adjusted In the usual way. All spaces to be placed at 
Charterers' disposal, which would be used for cargo If loading for Owner's account, and wherercargo 
has been carried before. 

18. — If the cargo cannot be delivered, loaded or discharged by reason of a strike or lockout of any 
class of workmen, or stoppage of labor or lighters, or anything beyond the control of the Charterers 
of Receivers essential to the delivery, loading or discharge of the cargo, the days for loading and 
discharging shall not count during the continuance of such .strike, stoppage or lockout. A strike 
of the Receiver's men only shall not exonerate him from any demurrage for which he may be liable 
under this Charter If by the use of reasonable diligence he could have obtained other suitable labor 
or lighters. 

19. — If the Nation under whose flag the Vessel sails be at war, whereby her free navigation Is en- 
dangered, thereby causing extra or prohibitory Insurance on the cargo, the Charterers shall have the 
privilege of cancelling this Charter-party at the last outward port of sailing, or at any subsequent 
period when the difficulty may arise previous to cargo being shipped. Charterers or stevedores shall 
not be responsible for any damage occurring while loading or discharging cargo by reason of any 
defect In 'Vessel's machinery or tackle, nor for neglect on the part of Vessel's otBcers or crew. 

20. — -The Act of God, perils of the sea. Are on board. In hulk or craft, or on shore, barratry of tho 
Master and Crew, enemies, pirates and thieves, arrests and restraints of princes, rulers and people, 
collisions, stranding and other accidents of navigation excepted, even when occasioned by negligence, 
default or error In judgment of the Pilot. Master, Mariners, or other servants of the Shipowners. 
Not answerable tor any loss or damage arising from explosion, bursting of boilers, breakage of shafts, 
or any latent defect in the machinery or hull, not resulting from want of due diligence by the Owners 
of the Ship, or any of them, or by the Ship's Husband or Manager. General average shall be adjusted 
according to York-Antwerp Rules, 1890. 

It is also mutually agreed that this shipment 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, ISO,?, and entitled, "An Act relating to Navigation of Vessels," etc., and Blila 
of Lading are to be signed in conformity with said Act. 

21. — Charterers' liability to cease when the cargo Is shipped, the Owner or Master of the Steamer 
having an absolute lien upon the cargo for the recovery and payment of all Freight, Dead Freight, 
and Demurrage. 

22. — Owners .shall furni.sh Charterers with a copy of vessel's scale, and plan showing cubic capacities 
of all holds and spaces upon signing of this Charter-party. 

23. — Owners or Master shall cable Vessel's departure from 

last port to enter upon this Charter, and they shall telegraph likewise, at once, if any accident happens 
to the vessel while under this contract. 

I- 24. — Penalty for non-performance of this agreement to be proven damages, not exceeding estimated 
amount of freight. 

By cable authority dated 

Agenta 



Vfe certify this to be a true copy of the original Charter Party in our Possession. 

Brokers 

running days (Sundays and Holidays excepted) remain for the dis- 
charge of this cargo. All conditions of this Charter-party have been complied with at loading 
port 

The Brokerage of five per cent, on the gross amount of freight, dead freight, and demurrage due 
under this Charter-party, Steamer lost or not lost, shall be paid by Owners to Bowrhag & Co, 



TRIP OR VOYAGE CHARTERS 215 

FOBM 68b. — New York Net Grain Charter Partt (War Conditions) 

NET GRAIN CHARTER ' 

BOWRING & CO. 
17 BATTERY PLACE, NEW YORK 

S. S. AGENTS AND SHIP BROKERS 

NeiD YoTt, December Srd. 1917 

IT IS THIS DAY MUTUALLY AGREED hetween''Messrs. A. P. Moller of Copenhagen. (Agents 
for] Managing Owners of the Steamship "ARNOLD MAERSK" of 1209 tons net register, British 
measurement; classed 100 A 1 now reported bound iiAth cargo from^River Plate, U. S. and calculated 
discharged U. S. end December ^and THE OCEAN TRANSPORTATION CO. OF NEW YORK 
Charterers, as follows: 

1.— That the said steamship being tight, staunch and strong, and In every way fitted for the voyage 
(and accordiiig to Builders' scale and plan, which Owners believe to be correct, but do not guarantee, 
able to carry about 2700 tons (2,240 lbs.) of (wheat or maize,] dead-weight cargo, In addition to necessary 
bunker coal, and having about lItS,000 cubic feet, grain space, available for such cargo), shall proceed 

to (for orders, the same to be given at 

once by Charterers on receipt of the Captain's telegram advising vessel's arrival there; to load at] 
New York and there load according to custom of port, a full and complete cargo of (wheat and/or 
maize and/or other] lawful merchandise, excluding guns, ammunition, explosives, barbed wire and 
injurious cargo. In the event of naphtha, benzine, calcium carbide, guictlime. ferro silicon or similar 
cargo being shipped, same to be loaded into speciallv constructed magazines {provided by Charterers and 
at their expense) in accordance with Danish insurance policy regulations, including deckload at 
shipper's risk and expense, which Charterers bind themselves to furnish, and being so loaded shall 
therewith proceed, as ordered when signing bills of lading, to [a safe port In the United Kingdom, or 
Continent, between Bordeaux and Hamburg, both inclusive (Rouen excluded)] Lisbon. Portugal. 
or so near thereunto as she may safely get, and there, always afloat, deliver the cargo as customary 
at such wharf, dock or other safe place as Charterers' Agents may direct on arrival, in accordance 
with Bills of Lading, In consideration whereof Charterers shall pay the vessel freight as follows: 
Two hundred sixty shillings (260/). Sterling, per U>n.\of S.2i0 lbs. on basis of clause 2. (If to a port In 
the,United Kingclom or Continent, between Bordeaux and Hamburg, both Inclusive, (Rouen^eicluded.)] 

(shillings] (pence. Sterling, per ton. If] 

fshilllngsl (pence. Sterling, per ton. If] 

Total freight to be prepaid to Bowring & Company in cash, without discount, at current rate of exchange 
for banters' short sight bills on London, upon signing of bills of lading and before vessel sails. Such freight 
never to be returnable to charterers' ship or cargo lost or not lost. 

2.— Charterers agree to load the vessel to full draft allowed by Underwriters' Surveyors, failing 
which they are to pay dead-freight for the number of dead-weight tons of 2,240 lbs., short shipped, as 
shown by the excess buoyancy. 

3. — Steamer to have liberty to sail with or without pilots, and to tow and assist vessels In all situa- 
tions, (also to coal at Norfolk or Newport News, In which case Charterers or their Agents have the 
option of giving orders there; said orders to be given within 12 hours of arrival, or lay days to count, 
and for purposes of Freight to be considered as given on signing Bills of Lading. Captain to give 
written notice before signing Bills of Lading, whetl>er he calls for coal or not, and at which coaling 
station.] Steamer to have liberty to coal [at a port In the United Kingdom or Copenhagen, if ordered 
to Denmark. Sweden, or the Baltic; or at Gibraltar, If ordered to the Mediterranean or Adriatic! 
en route. 

4. — [If ordered to Denmark, orders for the second port, if used, to be given on signing Bills of Lading, 
or after arrival at the first port at Charterers' option.] 

5. — .Should the Steamer be ordered to distiiarge (at a port on the Continent, excepting Rouen, 
where there is not sufficient water, under normal conditions, for the Steamer to enter first tide after 
arrival, and to lie always alloat, lay days are to count the same as provided in clause 16 hereof (from 24 
hours after notice of arrival at nearest safe customary anchorage,] and any lighterage incurred to reach 
the port of discharge Is to be at the expense and risk of the receiver of the cargo, any custom of the 
port to the contrary, notwithstanding. 

6.— [Should the Steamer be ordered to a port of discharge In the Sound, Sweden. Denmark, or the 
Baltic, inaccessible by reason of ice on the Steamer's arrival, the Master shall have the option of 
waiting until the port Is again open, or of proceeding to the nearest safe open port or roadstead (tele- 
graphing his arrival there to Charterers), where he shall receive fresh orders for an open and accessible 
port of discharge, within said Countries or In the United Kingdom or Continent, as above, within 24 
hours of arrival, or lay days to count. If so ordered, the Steamer shall receive the same Freight m 
If she had discharged at the port to which she w.as originally ordered.) 

7. — (Freight payable per ton of 2,240 lbs. delivered on right delivery of cargo. In cash. If at a port 
In the United Kingdom, or at current rate of exchange for bankers' short sight bills on London u in 
any other country.) 

8. — Charterers to (have the privilege ©f] deslgnatlnglwharves or other safe places for loading or dis- 
charging. The cargo to be brought to, and taken from alongside the Steamer, at Merchants' risk 
and expense. Steamer to supply steam and v/lnchmen to drive winches, and to give use of 
necessary gear, also to load or discharge at night, on Sundays or holidays or on day when notice is 
given if required by Charterers, such time not counting, they paying all extra expenses and labor In- 
curred, including overtime of winchmen. Shore winchmcn, if required, to be for charterers' account. 

9. — [Cash for Captain's ordinary disbursements at port of loading to be advanced. If required. 
Steamer paying two-and a-half per cent, commission and cost of insurance thereon, the amount of 
advance to be covered by Captain's draft payable three days after ship's arrival at port of discharge 
out of freight and on which the draft shall form a lien.) No claim shall be made against owners owing 
to consequences of delay through difflculties with crew or steamer's inability to get bunkers, but ownert to 
use all possible diligence in these matters. 

10. — Charterers are to load, stow and trim the cargo at their own expense, under the direction 
of the Master, but they shall not be responsible for improper stowage. Charterers to pay all port 
charges incidental to the outward cargo at loading port or ports, including elevating, stevedore, wharfage 
and tarpaulins, and to provide and fill sacks required to secure bulk grain, also dunnage mats, dunnage 
feeders shifting boards, if required, and to provide an agent for Custom House business, but owners to 
pay all port and other charges at loading port until steamer arrives at loading berth, but American 
tonnage dues (if any ore required) to be paid by steamer's agent are to be for charterers' account. 

11. — Charterers' Agent to pay cost of discharging cargo, pilotage, and all port charges incidental 
to their cargo at the discharging port or ports to which Steamer liiay be ordered, and to provide an 

i Clauses in [ ] were omitted from the printed form; those In Italics were put in with typewriter. 



216 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

FORM 68b. — NEW YORK Net Grain Charter Party (War Conditions) {Continued) 
agent for the Custom House biislntss, free of commission. If owners employ tally clerks for receiving 
or dcUvcrliis c.irijo. ( 'lia'-ttTors' ip.Ily cUrks to luive the preference at equal rates. [H steamer dls- 
cliarses at Newport Mon.. and after (llsehnrulnK loads oulward caryo there, the Newport dock dues 
(covering Inward I'lul outward entries i l>i lie borne equall.v by charterers and owner.s.l Towages 
at discharging porl.s. otner than assistins to berth or berths, to be for owners' account. 

12. — (Charterers to have use of any dunnage or mats, etc., as may be aboard.] 

13. — The Steamer shall be consigned to charterers' Agents at ports of loading and discharge, and 
Bhall employ their Droker to attend to the Ship's business free of commission. 

1-1. — The Captain shall sign bills of Lading or Master's Kecelpts as and when presented, without 
prejudice or retoreuce to this Cliarter-parly, and any dlflercnce between the amount of Freight by 
the UlHs of Lading and this Charter-party, to be settled at port of loading before sailing, as customary. 

15. — Lay days at port of loading are not to count before the 1st January, lois. unless 
with Charterers' written consent, and to commence on tlie day [following] receipt by Charterers' Agents 
of Captain's \vrltten notice of readiness, accompanied by Surveyor's CertlOcate. Time sJiall thus 
count Ttgardlcss of whctl^er or not steamer is in berth conuesllon or consequences of war. Sliould the 
Steamer not be ready to load on or before noon of the Slsl January, 191S — Charterers have the 
option of cancelling this Charter-party. 

16. — Ten (10) running days (Sundays and holidays excepted) shall be allowed the Charterers for 
all purposes including loading and discharging. Charterers guarantee a ready berth for steamer at 
the port of discharge, or failing steamer getting same lav days are to count from lime of her arrival at or 
off the port, irrespective of berth, congestion or consequences of tear. .Should the cargo not be delivered 
to Vessel at loading port and/or discharged at port [or ports] of destination within the specified time, 
for each and every day over and above said lay days. Charterers are to pay, day by day, the sum (of 
four pence per net register ton] three hundred pounds per day demurrage, any detention through 
Quarantine to vesbol or cargo, not to count In lay days. If sooner dispatched, steamer to pay (£10 for 
each dav saved]. One hundred and fifty pounds for each lay day saved. Charterers guarantee the pay- 
ment of all demurrage incurred at both ends, to Bowring & Co., New York. 

17. — The clauses herein regarding payment of port charges, stevedores, etc., at ports of loading and 
aischorglng refer only to such charges as are ordinarily Incurred, any extra expenses caused by the 
steamer being under aver:ige. are to be adjusted In the usual way. All spaces to be placed at Char- 
terers' disposal, which would be used for cargo If loading for Owner's account, and where cargo has 
been carried before. 

18. — If the cargo carmot be delivered, loaded or discharged by reason of a strike or lockout of any 
class of workmen, or stoppage of labor or lighters, or anything beyond the control of the Charterers 
or Receivers essential to the delivery, loading or discharge of the cargo, the days for loading and dis- 
charging shall not count during the continuance of such strike, stoppage or lockout. A strike of the 
Receiver's men only shall not exonerate him from any demurrage for which he may be liable under thla 
Charter If by the use of reasonable diligence he could have obtained other suitable labor or lighters. 

19. — If the Nation under wliose flag the Vessel sails be at war, whereby her free navigation Is en- 
dangered, thcreliy causing extra or prohibitory Insurance on the cargo, the Charterers shall have 
the privilege of cancelling this Charter-party at the last outward port of sailing, or at any subsequent 
period when the difBculty may arise previous to cargo being shipped. Charterers or stevedores shall 
not be responsible for any damage occiuring while loading or discharging cargo by reason of any 
defect In Vessel's machinery or tackle, nor for neglect on the part of Vessel's officers or crew. In the 
event of Denmark becoming engaged in war prior to the steamer's reporting for loading hereunder, owners 
to have liberty of cancelling this charter party. 

20. — The Act of God, perils of the sea, fire on board. In hulk or craft, or on shore, barratry of the 
Master and Crew, enemies, pirates and thieves, arrests and restraints of princes, rulers and people, 
collisions, stranding and other accidents of navigation excepted, even when occasioned by negligence, 
default or error In judgment of the Pilot, Master, Mariners, or other servants of the Shipowners. Not 
answerable for any loss or damage arising from explosion, bursting of boilers, breakage of shafts, or 
any latent defect In the machinery or hull, not resulting from want of due diligence by the Owners 
of the Ship, or any of them, or by the Ship's Husband or Manager. General average shall be adjusted 
according to York-Antwerp Rules, 1890. 

It Is also mutually agreed that this shipment 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, IS93, and entitled, "An Act relating to Navigation of Vessels," etc., and Bills of 
Lading are to be signed in conformity with said Act, 

21. — [Charterers' liability to cease when the cargo is shipped,] the Owner or Master of the Steamer 
having an absolute lien upon the cargo for the recovery and payment of all Freight, Dead Freight, 
Demurrage, Dues, Taxes, etc. 

22. — [Owners shall furnish Charterers with a copy of vessel's scale, and plan showing cubic capacities 
of all holds and spaces upon signing of this Charter-party.] 

23. — Owners or Master shall cable Bowring-Ncio York Vessel's departure from last port to enter 
upon this Charter, and they shall telegraph likewise, at once, tf any accident happens to the vessel 
while under this contract. 

24. — Penalty for non-performance of this agreement to be proven damages, not exceeding estimated 
amount of freight. 

This charter is subject to the approval of the Interallied Chartering Executive, also the U. S. Shivping 
Board. 

All dues and/or taxes on cargo or Imposed on steamer by reason of having this cargo aboard to be for 
charterers' account. Bills of Lading shall be issued for all the cargo loaded into steamer, and shall contain 
the names of the firms to whom the cargo is consigned — following such names the following words shall be 
addid "not to order." 

Charterers guarantee that the Untied States Government Export Licenses will be furnished, covering all 
the cargo loaded into steamer. 

Owners hereby guarantee the United States Shipping Board that the steamer icill, following discharge 
at Lisbon, return to a United States Atlantic or Gulf port either with cargo or in ballast from Portugal, the 
Spanish Atlantic or North Africa, not below 25 degrees North, excluding the Mediterranean Sea. 

running days (Sundays and Holidays excepted) remain for the discharge. 

of this cargo. All conditions of this Charter-party have been complied with at loading port 

The Brokerage of 2,S percenton the gross amount of freight, dead freight and demurrage due under 
this Charter-party, Steamer lost or not lost, shall be paid by Owners to Bowking & Co. 

By cable authority dated London, December Srd, 1917. 
From Messrs. H. Clarkson <& Co., for the Managing 

Oicners [Agents.\ 

(Signed) BOWRING & COMPANY, 

R. N. Black, Asst. Mgr. S B. Dept. 
As Agents, 
f (Signed) OCEAN TRANSPORTATION CORP., 
\ Wm. F. Vidal, Pres. 

We certify this to be a true eopy'of the original Charter-party in our Possession 

[Brolert.] 



TRIP OR VOYAGE CHARTERS 217 

loads outward cargo there, the Newport dock dues (covering 
inward and outward entries) to be borne equally by charterers 
and owners. Towages at discharging ports other than assisting 
to berth or berths, to be for owners' account." 

Modified Gross and Net Charters 

Many trip charters have been so modified that they are neither 
of the gross nor the net form and are variously referred to ^ 
as modified gross or semi-net charters. The nitrate charter 
parties reproduced in Forms 69a and 69b, for example, are 
modified gross charters as the charter rate does not definitely 
cover the entire cost of discharging. They provide that when 
the cargo is discharged at the Atlantic or Gulf ports of the 
United States the charterers are to name the stevedore, while 
the owners are to pay agreed amounts for stevedoring and also 
"half the cost of weighing of three cents per bag." Loose nitrate 
is to be bagged at ship's expense, but the consignees are to pro- 
vide bags and twine. Under the terms of the trip charter used 
in the Brazilian coffee import trade the coffee is sometimes dis- 
charged at the American importer's pier by his own stevedores, 
the owners agreeing to pay the charterer an agreed amount per 
bag for stevedoring and a per diem charge for the use of his pier. 
The so-called "Welsh form" of coal charter, reproduced in Form 
70a, provides that the charterer shall discharge the cargo and that 
the owner shall pay him an agreed amount per ton to cover dis- 
charging expenses, and that all wharfage dues on the cargo shall 
be paid by the charterer. The saiHng vessel charter commonly 
used in shipping corn or linseed from the River Plate to the 
United States requires the charterer to pay a number of specified 
port dues and to provide dunnage and shifting boards. In the 
usual "Cuban Ore charter" the freight paid by the charterer is in 
full of "all charges, pilotages, consulages, lighterage, trimming 
lights, Qyde dues, and all other dues customarily payable by 
steamers," but the provision governing loading and discharging 
makes it a modified gross charter. The captain is to supply the 
charterer's stevedore both at the ports of loading and discharge, 
paying to the charterer specified amounts per ton which may be 
deducted from freight. The standard "Cuban sugar charter" used 
in shipping sugar to the United States before 1917 was a gross 



218 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Form 69a. — Nitrate CnARTERTPARTT (Phe-Wab Co^fDITION8) 

NITRATE CHARTER PARTY ' 

BOWRING & COMPANY 

17 BATTERY PLACE, NEW YORK 

SHIP BROKERS AND STEAMSHIP AGENTS AND GENERAL [COMRUSSION 

MERCHANTS 

New York, Februarj/ ISth, 1914. 

IT IS THIS DA Y MUTUALLY AGREED between Messrs 

Company of \\ llmlngton, Delaware, Chartercra and Afessrs Co. 

acting as Agents for the Owners of the good .steamship, called the 

classed 100 Al of the burthen of S5St tuns net ret,lstcr or hereabouts, now trading and expected 
ready load hereunder about April 20th. Captain being bound to report by wire his arrival at and 
departure from port where steamer last Is prhir to entering on this charter, to his Owners, who are 
bound to Inform Charterers of all news recelveii from the steamer Witnesseth: — 

1. That the said steamer, being tight, .staunch and strong, well and .sufndently manned, stored 
and victualled, and In every respect fit to perform the voyage hereinafter mentioned shall. If bound 
to West Coa.st of South America In ballast, proceed In ballast to Valparaiso for orders, to be given 

within twenty-four hours after receipt of Master's notice of arrival to 

Chile. Cable address (to whom all applications 

referring to steamer and cargo on the West Coast have to be made) or If bound to West Coast with 
cargo, shall with all possible despatch, after having discharged such Inward cargo, proceed, as ordered 
at last port of discharge (which orders are to be given before 12 o'clock noon on the day of completion 
of discharge of inward cargo at a port on the West Coast of South America, the Captain keeping Mr. 

well advised of when discharge will probably be completed and charterers 

always having privilege up to time of completion of discharge of altering any orders previously given) 
to lo.ad at one, two or three ports and/or adjacent Caletas between Taltal and Pisagua both included 
(iQuique and/or Pisagua and/or their adjacent Caletas counting for one port, also Tocopllla and/or 
Mejiilonea and/or Antofagasta and/or Caleta Coloso counting as one port), where she shall receive 
a full and complete cargo of Nitrate of Soda In bags not exceeding what she can reasonably stow and 
carry over and above her cabin, tackle, apparel, provisions and furniture. It is hereby mutually 
agreed that the steamer shall not load more than 6800 tons and not less than GSOO tons English gross 
weight. The Master must declare upon arrival at the first loading port the exact amount of cargo 
he will take 'within twenty-five tons more or less. 

2. The steamer to pay all port charges and to be consigned in the said ports of loading to Char- 
terer's .Agents, to whom the customary agency fee of Five pounds British sterling for doing the 
steamer's business shall be paid by the Master, payable at one port only. 

3. The cargo to be placed by the shippers free alongside of the steamer at the Shippers' risk and 
expense. 

The loading of the said cargo shall be at an average rate of not less than 500 tons per working day. 
the lay days not to commence before the 10th of April. 1914. to be reckoned from the day after the 
Master gives notice In writing that the steamer (being clear of all Inward cargo, and being well cleaned 
by the crew) is ready to receive cargo at port of loading to her day of despatch, and in addition ten 
running days on demurrage are to be allowed Charterers at the rate of fourpence British sterling per 
net registered ton per day. or its equivalent for each and every day's detention, payable dally. It is 
understood that the lay days shall be reckoned according to the custom of the West Coast, viz. 
taking the word "working" to exclude surf days, Sundays and all other holidays, whether ecclesiastical 
or civil, also days of strikes and lockouts. Time occupied in shifting ports not to count as lay days. 
Shotild the steamer be unnecessarily detained at any other period of the voyage, such detention to 
be paid for by the parly delinquent at the above-named rate of demurrage. 

4. The Master to give notice in writing, when he Is ready to receive or deliver cargo, and Char- 
terer's Agents to inform him in like manner when he Is at liberty to proceed on his voyage. Bills 
of Lading containing negli-cence clause as per clause 12 to be signed by the Master, "weight and quality 
unknown all on board to be delivered" at such rate of freight as Charterers or their Agents may direct, 
but at not less a rate than hereinafter stipulated, and without prejudice to this Charter Party. 

5. The cargo to be properly stowed. Owners to employ Charterers' stevedore and the necessary 
dunnage to be found by the steamer, and the Owners to be responsible for bad stowage; but should 
Charterers require different parcels of the cargo to be separated for other purposes than for the pre- 
vention of damage, they are to find the materials. No cargo to be received on board except by order 
of the Charterers or their Agents. Owners are to have an accurate tally kept of the number of bags 
placed aboard steamer, furnishing enough competent men to secure such tally, but not less than one 
tally man to each hatch when beiisg worked. 

6. After the despatch of the steamer, loaded as aforesaid, should the vessel put Into port of 
distress, or be under average, she Is to be consigned to Charterers or their Agents, paying them usual 
charges and commissions, and, in case average statement be required, the same to be made by adjusters 
appointed by Charterers who are to attend to settlement and collection of the average subject to 
customary charges. General average, if any, to be adjusted according to the lYork-Antwerp 
Rules, 1S90. 

7. After receiving on board the said cargo, stowing It In the customary manner ana being duly 
cleared out at the Custom House, the said steamer shall proceed under full steam to St. Lucia, St. 

Thomas or Trinidad wheretthe, Master shall receive orders from the 

Company, of (cable address ) 

sent by them within 24 hours, Sundays and holidays excepted, after they receive the Master's tele- 
graphic advices of arrival, to proceed to any one .safe Atlantic or Gulf port in the United States between 
Boston and Galveston, both included; or she shall, as ordered, proceed direct to port or ports included 
within the ranee of above options or as near thereunto as she can safely get and there, always afloat, 
according to Bills of Ladln? and Charter p.^rty, deliver the cargo, which is to be discharged and taken 
from alongside according to the custom of the port for steamers, and so end the voyage. Charterers 
to have the option of a .second port of discharge within the range above provided for, such option 
to he declared on or before the completion of discharging at first port of discharge but In case thi* 
option Is availed of, S2wh second port to be in the Gulf If first port of discharge is a Gulf port, or the Atlantic 
if first port is an Atlantic port. 

8. It is understood and agreed that should the steamer be ordered to the Delaware River, Char- 
terers are to have the option of discharge at three ports on the Delaware River (Pigeon's Point and/or 
Thompsons Point and/or Philadelohia in any order) not north of Philadelphia, as ordered on arrival 
at Delaware Breakwater, such three ports on the Delaware River only counting as one port of dis- 
charge under this c:harter. Charterers airree that the port charges (including towages and boatages) 
of the three Delaware River ports, If used, shall not exceed the port charges of two Delaware River 

gorts. and that lay days shall count the same as if steamer discharged at two ports In the Delaware 
;lver. 
' 9. [After receiving on board the said cargo, stowing It In the customary manner and being duly 

» Clauses In [ ] were omitted from the printed form; those In italics were put In with typewriter. 



TRIP OR VOYAGE CHARTERS 219 

FORM 69a. — Nitrate Charter Party (Pre- War Conditions) (Continued) 
cleared out at the Custom House, the said steamer shall proceed under full steam to San Francisco 
where the Master shall receive orders from the E. I. du Pont de Nemours Powder Co., of Wilmington, 
Delaware (through their representative at San Francisco) to be given by him within 24 hours, Sundays 
and Holidays excepted, after they receive the Master's written advice of arrival to proceed with his 
steamer for discharge at San Francisco (City or Bay) and/or du Pont, Washington, or as near there- 
unto as she can safely get and there, always afloat, according to Bills of Lading and Charter Party, 
deliver the cargo, which Is to be discharged and taken from alongside according to the custom of the 
port for steamers, and so end the voyage. If Charterers exercise the option of discharging at both porta 
this option to be declared on or before the completion of discharging at first port of discharge.] 

10. [Charterers to have the option on sijnlng Bills of Lading of ordering the steamer either direct 
to a port within the aftermentioned limits or to St. Vincent, where she shall receive orders from Char- 
terers within twenty-four hours (Sundays and Bank Holidays excepted) after receipt of Master's 
telegraphic advice of arrival to proceed with his steamer for discharge to a safe port In the United 
Kingdom or on the Continent between Ha^'Te and Hamburg, both included, or so near thereunto as 
Bhe may safely get, always afloat and there, according to Bills of Lading and Charter Party, deliver 
the whole of her cargo, which Is to be dischar,f;ed and taken from alongside according to the custom 
of the pnrt for steamers, and so end the voyage. Charterers to have the option of a second port of 
discharge within the range provided for in this clause, such option to be declared on or before the 
completion of discharging at first port of discharge.] 

11. Charterers' Agents have the privilege of naming the discharging dock or place, provided they 
avail themselves of same within twenty-four hours before the arrival of the steamer at port of dis- 
charge Is notiaed to them by the Master or his Agent, and such dock or place to be one into which 
she can at once safely enter and He afloat at all times. [If ordered to Hamburg steamer to discharge 
in stream if required by Charterers.] 

12. In consideration of all which the Charterers do hereby agree to pay or cause to be paid, to 
the Captain or his order for freight of the said steamer, on true and right delivery of the cargo In the 
port of discharge, according to the Bills of Lading and Charter Party. [If sent to a port of call tor orders 

to discharge In United States] nineteen shillings pence say 19/ British 

Sterling (without reduction If orders are given before sailing to proceed to a direct port of discharge,) 
In full, per ton of 2.240 pounds Avoirdupois English gross weight delivered. [If sent to a port of call 

for orders to discharge In the United .Kingdom or on the Continent] (shillings) 

[pence say] [British Sterling (without reduction If orders 

are given before sailing to proceed to a direct port of discharge). In lull, per ton of 2,240 pounds of 
Avoirdupois English gro.ss weight delivered.) 

If a second port of discharge {[j° \^l u°k! or on^Continent (bet. H. and H.)]} 's "sed ticelve (/2) 
pence British Sterling additional freight on entire cargo per ton 2.240 pounds delivered to be paid. 

13. Freight to be paj'able In the following manner: [If discharged in the United States), one 
third In cash en arrival at the current rate of exchange for short bills on London, and the remainder 
after true delivery in Charterer's drafts on their London otace at ninety days' sight free of all dis- 
count, or in cash less three months' discount at the rate of 5'~"o per annum at the option of consignees. 
(If discharged in the United Kingdom one-third In cash on arrival without discount, and remainder 
on true and right delivery of the cargo, likewise In cash without discount, or If discharged at a port 
on the Continent, one-third In cash on arrival at the printed rate of exchange for short date bills on 
London without discount, and remainder on true and right delivery of the cargo In good and approved 
banker's sight bills on London.) In the event of the steamer having free wharfage at port of dis- 
charge, a reduction of four pence (4d) per ton of 2.240 pounds, to be made In the freight rate. 

14. The Master If required by him to be supplied at port of loading with a sum not exceeding five 
hundred pounds Sterling (£500) at the current rate of exchange, and subject to 5 per cent to cover 
Interest, commission, and cost of Insurance, to be deducted from the first payment of freight after 
arrival of the vessel at the port of discharge. And It Is hereby expressly agreed that the receipt of the 
master for any such sum or sums of money as shall be supplied or advanced to him by the Charterers 
Bhall be conclusive and binding upon the owners, and they shall hereby be prevented as between them 
and the Charterers from Inquiry Into the necessity for or the appropriation of the sum of money, which 
In such receipt or receipts shall be acknowledged to have been received. 

15. The act of God, earthquakes. Inundation, perils of the sea, fire, barratrj' of the master and 
crew, enemies, pirates, assailing thieves, arrest and restraint of princes, rulers and people, political 
disturbances or Impediments, strikes and lockouts, collisions, stranding and other accidents of navi- 
gation, even when occasioned by the negligence, default or error In judgment of the pilot. Master, 
mariners, or other servants of the Shipowners, from the signing of this Charter Party to the.concluslon 
of the said voyage, always mutually excepted. 

16. The steamer has liberty to call at any port in any order for coaling purposes, and to sail without 
pilots, to tow and assist vessels In distress, and to deviate for the purpose of saving life and property. 
Owners or master must notify Charterers by wire within twenty-four hours after sailing of steamer's 
departure from the final coaling port for port of discharge In the United States. In case owners fall 
to give such Immediate telegraphic notification Charterers shall not be responsible for any resulting 
losslof time Incurred at discharging port. 

17. Steamer not answerable for losses through explosion: bursting of boilers, breakage of shafts, 
or any latent defect In the machinery or hull, not resulting from want of due diligence by the Owners 
of the Ship, or any of them, or by the Ship's hu.sband or manager. All and any liability of the 
Charterers under this Agreement shall cease and determine as soon as the cargo Is on board and upon 
payment of the aforesaid advance Freight; all questions abroad whether of demurrage or otherwise 
to be settled and adjusted at port of loading, the Owner and Captain having a lien on the cargo for 
demurrage and damage for detention, as well as for freight and dead freight. 

18. Should the steamer not be ready to load at loading port on or before 6 P. M. on Mav 10th, 1914, 
Charterers' Agents to have the option of canceling this Charter Party. 

19. Steamer to pay half the expense of weighing, of three cents per bag, and loose nitrate to be 
bagged at ship's expense, consignees providing bags and twine for their account. If the steamer 
discharges at a U. S. Atlantic or U. S. Gulf port, the Charterers are to name the stevedore who will 
discharge the cargo, for which the Owner of said Steamer will pay thirty-five cents per ton. [If the 
steamer discharges at a United States West Coast port. Charterer's stevedore to be employed at 
current rates.) 

20. Steamer to supply canvas slings, 8 feet by 8 feet, for loading and discharging cargo. 

21. And for the true and punctual fulfillment of each and all the conditions herein mentioned, the 
contracting parties do hereby bind themselves to each other In the penal sum of the estimated amount 
of freight, to be forfeited and paid by the party delinquent to the party observant. 

22. Brokerage of five per cent. Is due to Bowrlng & Company on signing of this Charter Party, 
ship lost or not lost, and Steamer to be consigned to them or tUelr Agents, as shipbrokers, at port of 
discharge, or to forfeit twenty pounds British Sterling damages. 

(Signed) Witness to the Signature of (Signed) Co. 

T. M. 

(Signed) Witness to the Signature of (Signed) & Company 



.\s agents for Owners by cable authority of Messrs & Co., London. 

We Hehbbt Certift the above to be a true copy of the original Charter Party In our possession. 



220 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

FORM 69n. — Nitrate ChartebIPartt (War Conditions) 

NITRATE CHARTER PARTY ' 
BOWRING & COMPANY 
17 BATTERY PLACE, NEW YORK 

SHIP BROKERS AND STEAMSHIP AGENTS AND GENERAL COMMISSION 

MERCHANTS 

New Yort. June 14. 1918. 

IT IS THIS DA Y MUTUALLY AGREED between Company 

of WlImlnKton, IJelaware. Charterers, and U. S. Shipping Board, acting as Agents for the Chartered 
Owners of the good steamship, called the ^TIM MARU. classed 100 Al, ot the burthen of S91S 
tons net register or thereabouts, now expected due at Seattle about June ISth. Captain being bound 
to report bv wire his arrival at and departure from port where steamer Uvst la prior to entering on thla 
charter, to his Owners, who are bound to Inform Charterers of all news received from the steamer 
Wltnesseth: — 

1. That said steamer, being tight, staunch and strong, well and sufficiently manned, stored and 
victualled, and In every respect fit to perform the voyage hereinafter mentioned shall. If bound to 
West Coast of South America In ballast, proceed In ballast to Ara If coming South or Taltal If going 
North for orders, to be given within twenty-four hours after receipt of Master's notice of arrival to ... . 

Chile, Cable address, (to whom all applications referring to 

steamer and cargo on the West Coast have to be made) or If bound to West Coast with cargo, shall with 
all po.ssible despatch, after having discharged such inward cargo, proceed, as ordered at last port of 
discharge (which orders are to be given before 12 o'clock noon on the day of completion of discharge 
of inward cargo at a port on the West Coast of .South America, the Captain keeping Mr. Edge well 
advised of when discharge will probably be completed and charterers always having privilege up to 
time of completion of discharge of altering any orders previously given) to load at one or two [or 
three] ports and/or adjacent Caletas between Taltal and Pisagua both included (Iqulque and/or 
PLsagua and/or their adj.acent Caletas counting for one port, also Tocopllla and/or Mejiilones and/or 
Antofagasta and/or Caleta Coloso counting as one port), where she shall receive a full and complete 
cargo of Nitrate of Soda In bags not exceeding what she can reasonably stow and carry over and 
above her cabin, tackle, apparel, provisions and furniture. It Is hereby mutually agreed that the 
steamer shall not load more than 7700 tons and not less than 7100 tons English gross weight. The 
Master must declare upon arrival at the first loading port the exact amount of cargo he will take within 
twenty-five tons more or less. 

2. The steamer to pay all port charges and to be consigned at the said ports of loading to Charterer's 
Agents, to whom the customary agency fee of Five pounds British Sterling for doing the steamer's 
business shall be paid by the Master, payable at one port only. 

,3. The cargo to be placed by the shippers free alongside of the steamer at the Shipper's risk and 
expense. 

The loading of the said cargo shall be at an average rate of not less than SOO tons per working day, 
tne lay da.vs not to commence before the IGth July, WIS, to be reckoned from the day the Master 
gives notice In writing that the steamer (being clear of all inward cargo, and being well cleaned by 
the crew) Is ready to receive cargo at port of loading to her day of despatch, and in addition ten running 
days on demurrage [are to] or held by be allowed Charterers at the rate of fourpence British Sterling 
per net registered ton per day, or its equivalent for each and every day's detention, payable dally. 
It Is understood that the lay days shall be reckoned according to the custom of the West Coast, 
viz.: taking the word "working" to exclude surf days, Sundays and all other holidays, whether 
ecclesiastical or civil, also days of strikes and lockouts. Time occupied in shifting ports not to count 
as lay days. Should the steamer be unnecessarily detained at any other period of the voyage, such de- 
tention to be paid for by the party delinquent at the above-named rate of demurrage. 

4. The Master to give notice In writing, when he Is ready to receive or deliver cargo, and Charterer's 
Agents to Inform him In like manner when he Is at liberty to proceed on his voyage. Bills of Lading 
containing negligence clause as per clause 14 to be signed by the Master, "weight and quality un- 
known all on board to be delivered" at such rate of freight as Charterers or their Agents may direct, 
but at not less a rate than hereinafter stipulated, and without prejudice to this Charter Party. 

5. The cargo to be properly stowed. Owners to employ Charterers' stevedore and the necessary 
dunnage to be found by the steamer, and the Owners to be responsible for bad stowage; but should 
Charterers require different parcels of the cargo to be separated for other purposes than for the pre- 
vention of damage, they are to And the materials. No cargo to be received on board except by order 
of the Charterers or their Agents. Owners are to have an accurate tally kept of the number of bags 
placed aboard steamer, furnishing enough competent men to secure such tally, but not less than one 
tally man to each hatch when being worked. 

6. (After the despatch of the steamer, loaded as aforesaid, should the vessel put Into port of distress, 
or be under average, she Is to be consigned to Charterers or their Agents, paying them usual charges 
and commissions, and, in case average statement be required, the same to be made by adjusters 
appointed by Charterers who are to attend to settlement and collection of the average subject to cus- 
tomary charges.] General averages, if any, to be adjusted according to the York-Antwerp Rules, 1890. 

7. After receiving on board the said cargo, stowing It In the customary manner and being duly 
cleared out at the Custom House, the said steamer shall proceed under full steam to Colon, [St. Lucia, 
St. Thomas or Trinidad at Owners' option] where the Master shall receive orders from the 

Company, of 

(cable address ) sent by them within 24 hours, Sundays and holi- 
days excepted, after they receive the Master's telegraphic advices of arrival, to proceed to any one 
safe Atlantic or Gulf port In the United States between Boston and Savannah both Included; or she 
shall, as ordered, proceed direct to port included within the range of above options or as near there- 
unto as she can safely get and the.-e, always afloat, according to Bills of Lading and Charter party, 
deliver the cargo, which Ls to be discharged and taken hut at an average rate of not less than 800 tons per 
weather working day, Sundays and holidays excepted, from alongside according to the custom of the 
port for steamers, and so end the voyage. [Charterers to have the option of a second port of dis- 
charge within the range above provided for, such option to be declared on or before the completion 
of discharging at first port of discharge.) Any time saved in loading to count as additional time for dts- 

I Clauses enclosed In [ ] were eliminated from the printed form; those In italics were inserted wltb 
typewriter. 



TRIP OR VOYAGE CHARTERS 221 

, Form 69b — Nitrate Charter Party (Wah Conditions) {Continued) 

i tltarging and vice versa, if longer detained charterers to vay demurrages of $2700 -per day or pro Tola for 
van of day. 

S. It is understood and agreed that should the steamer be ordered to the Delaware River, Charterers 
are to have the option of discharge at three ports on the Delaware River (Pigeon's Point and/or 
Thompson's Point and/or Deepwater Point and/or Philadelphia In anv order) not north of Phila- 
delphia, as ordered on arrival at Delaware Breakwater, such three ports on the Delaware River odly 
counting as one port of discharge under this Charter. Charterers agree that the port charges (Including 
towages and boatages) of three Delaware River ports, if used, shall not exceed the port charges of two 
Delaware River ports, and that lay days shall count the same as if steamer discharged at two porta 
In the Delaware River. 

.9. [After receiving on board the said cargo, stowing it In the customary manner and being duly 
cleared out at the Custom House, the said steamer shall proceed under full steam to San Francisco 
where the Master shall receive orders from the E. I. du Pont de Nemours & Co., of Wilmington 
Delaware (through their representative at San Francisco) to be given by hhn within 24 hours, Sundays 
and holidays excepted, after they receive the Master's written advice of arrival to proceed' with his 
steamer for discharge at San Francisco (City or Bay) and/or du Pont, Washington and/or Powder 
Point, British Columbia, or as near thereunto as she can safely get and there, always afloat, according 
to Bills of Lading and Charter Party, deliver the cargo, which is to be discharged and taken from 
alongside according to the custom of the port for steamers, and so end the voj'age. If Charterers 
exercise the option of discharging at two or three ports this option to be declared on or before the 
completion of discharging at first port of discharge.! 

10. Charterers' Agents have the privilege of naming the discharging dock or place, provided they 
avail themselves of same within twenty-four hours before the arrival of the steamer at port of dis- 
charge Is notified to them by the Master or his Agent, and such dock or place to be one into which 
Bhe can at once safely enter and He afloat at all times. 

11. In consideration of all which the Charterers do hereby agree to pay or cause to be paid, to the 
Chartered oicners [Captain or his order for] freight of the said steamer, on true and right delivery of 
the cargo in the port of discharge according to the Bills of Lading and Charter Party. If sent to a 

port of call for orders ticenty-fivc dollars (SSS.OO) U. S. Gold [shillings] [pence say) .... 

[British Sterling] (without reduction If orders are given before sailing to proceed to a direct port of 
discharge). In full, per ton of 2.240 pounds Avoirdupois English gross weight delivered. 

12. Freight to be payable In the following manner. One-third in cash on arrival at the current 
rate of exchange for short hills on London, and the remainder after true delivery [in Charterer's drafts 
on their London oflSce at ninety days' sight free of all dlscoimt, or In cash less three months' discount 
at the rate of 5% per annum at the option of consignees. In the event of the steamer having free 
wharfage at port of discharge, a reduction of four pence (4d) per ton of 2,240 pounds, to be made In 
the freight rate.) 

13. The Master if required by him to be supplied at port of loading with a sum not exceeding 
Twenty-tLve htmdred pounds Sterling (£.2500), at the current rate of exchange, and subject to 6 
per cent, to cover Interest, commission, and cost of insurance, to be deducted from the first pay- 
ment of freight after arrival of the vessel at the port of discharge. And It is hereby expressly agreed 
that the receipt of the master for any such sum or sums of money as shall be supplied or advanced 
to him by the Charterers shall be conclusive and binding upon the owners, and they shall hereby be 
prevented as between them and the Charterers from Inquiry into the necessity for or the appropriation 
of the sum of money, which in such receipt or receipts shall be acknowledged to have been received. 

14. The act of God, earthquakes. Inundation, perils of the sea, fire, barratry of the master and 
crew, enemies, pirates, assailing thieves, arrest and restraint of princes, rulers and people, political 
disturbances or Impediments, strikes and lockouts, collisions, stranding and other accidents of navi- 
gation, even when occasioned by the negligence, default or error In judgment of the pilot. Master, 
Mariners, or other servants of the Shipowners, from the signing of this Charter Party to the con- 
clusion of the said voyage, always mutually excepted. 

15. The steamer has liberty to call at any port In any order for coallngpurposes, and to sail without 
pilots, to tow and assist vessels in distress, and to deviate for the purpose of saving life and property. 
Owners or master must notify Charterers by wire within twenty-four hours after sailing of steamers' 
departure from the final coaling port for port of discharge In the United States. [In case owners fall 
to give such Immediate telegraphic notification Charterers shall not be responsible for any resulting 
loss of time Incurred at discharging port.] 

16. Steamers not answerable for losses through explosion; bursting of boilers, breakage of shafts. 
or any latent defect In the machinery or hull, not resulting from want of due diligence by the Owners 
of the Ship, or any of them, or by the Ship's husband or manager. All and any liability of the Char- 
terers under this Agreement shall cease and determine as soon as the cargo is on board and upon 
payment of the aforesaid advance Freight; all questions abroad whether of demurrage or otherwise 
to be settled and adjusted at port of loading, the Owner and Captain having a lien on the cargo for 
flemurrage and damage for detention, as well as for freight and dead freight. 

17. Should the steamer not be ready to load at loading port on or before 6 P. M. on 1st September, 
1918, Charterers' Agents to have the option of cancelling this Charter Party. 

18. Steamer to pay half the expense of weighing, of three cents per bag, and loose nitrate to be 
bagged at ship's expense, consignees providing bags and twine for their account. (If the steamer 
discharges at a U. 8. Atlantic or U. S. Gulf port, the] Charterers are to name the stevedore who will 
discharge the cargo, for which the Owner of said Steamer will pay current rates. [If the steamer dia- 
cliarges at a United States West Coast port. Charterer's stevedore to be employed at current rates.] 

19. Steamer to supply canva,s slings, 8 feet by 8 feet, for loading and discharging cargo. 

20. And for the true and punctual fulfillment of each and all of the conditions herein mentioned, 
the contracting parties do hereby bind themselves to each other In the penal sum of the estimated 
amotmt of freight, to be forfeited and paid by the party delinquent to the party observant. 

21. [Brokerage of five per cent. Is due to Bowring & Company on signing of this Charter Party. 
Bhlp lost or not lost, and Steamer to be consigned to them or their Agents, as shipbrokers, at port 
of discharge, or to forfeit twenty pounds British Sterling damages.] 

An address commission of 2l-i% is due to charterers on the amount of freight earned under this Charter. 
This Chartefis subject to the approval of the Chartering Committee of the U. S. Shipping Board. 

Witness to the Signature of 

, , , , (.Signed) & Co. 

Witness to the Signature of Traf. Mgr. 

(.Signed) U. S. Shipping Board, 

As agents for Owners by cable authority of 

WB Hebebt Cebtut the above to be a true copy of the original Charter Party in our possession. 



222 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

FORM 70A. — Coal Charter Party — Welsh Form 

COAL CHARTER PARTY— WELSH FORM^ 

BOWRING & CO. 

STEAMSHIP AGENTS AND BROKERS 

17 STATE STREET, NEW YORK 

New Yort, June Srd, 191B. 

IT IS THIS DAY MUTUALLY AGREED, between & Co., 

Agents for Owners of the Greek Steamship 

Of .' '.'.'." built in07. at Sloctlon of SG91 net tons register or there. 

abotits and about tons dead weight exclusive of bunkers, classed 1st class In 

now tr'adincr and Messrs Co.. of New York. 

1 That the said Steamer being tight, staunch, and strong, ana every way flttcd for the Voyage, 
shall, with all possible dispatch, sail and proceed to lialtlmore or Hampton Roads, at Charterers' option 
order's to be given before leaving last port in ballast and there load, always afloat, in the customary manner. 

from the Charterers, In such Dock as may be ordered by them on or before arrival [In] 

(Roads) 1 '»" a"'l complete Cargo of Coal 

not exceeding 0700 tons, nor less than GMO tons, and not exceeding what she can reasonably stow and 
carry, over and above her Tackle. Apparel, Provisions and Furniture; and being so loaded, shall 
therewith proceed, with all possible dispatch, to Marseilles, Genoa, Savona. Spezzia. Naples, Leghorn 
or CivUa Vecchia, as ordered on signing bills of lading or so near thereunto as she can safely get. and 
there dollvor her cargo alongside any Wharf, and/or Vessel and/or Craft, as ordered, where she can 
safely deliver, always afloat, but If required to shift, the expense of so doing to be paid by Consignees, 
and the lime to count: on being paid Freight at the rate of forty sMllings (40/) if ordered to Marseilles 
or forty-fire shillings (4-5/) if ordered to Spezzia, Genoa, Naples, Savona. Leghorn or Civlta Vecchia. 
one port only, per ton of 20 cwt. or 1.015 kilos [delivered, or] on BUI of Lading quantity less two per 
cent [at Receiver's option, to be declared In writing, before bulk la broken. If the Receiver should 
elect to weigh the Cargo at the port of destination, the weighing shall be done (by an official weigher) 
at his expense The o^vner may provide a check weigher at Steamer's expense. Should any deficiency 
be alleged on the authority of such weighing, it sliall affect the freight only, from which no deduction 
Bhall be made for alleged shortage of cargo, any custom of the port of discharge notwithstanding, but 
the] owner shall furnish. If required, a Statutory Declaration by the Master and other officers that 
all the Cargo received on board has been delivered. The freight Is in lull of Trimming, and of all Port 
Charges, Pilotage, and Consulages on the Vessel. All Wharfage dues on the Cargo to be paid by the 

2. A sailing telegram to be sent to the Charterers or their agents on Steamer leaving her last 
port or In default twenty-four hours more to be allowed for loading. 

3. The cargo to be loaded leith ciistomary despatch [hours] (excluding Bunkering time, Sundays, 
Custom House, Colliery, and Local Holidays, and from 6 p. m. on Saturday or the day previous to 
any such Holiday to 7 a. m. on Monday, or the day after any such Holiday, unless used) commenclrig 
when written notice Is given of Steamer being completely discharged of Inward cargo and ballast In 
all her holds, and ready to load, such notice to be given between business hours of 9 a. m. and 5 p. m.. 
or 1 p. m. on Saturdays. Any time lost through riots, strikes, lockouts, or any dispute between masters 
and men, occasioning a stoppage of pitmen, trimmers, or other hands connected with the working or 
delivery of the coal for which the Steamer is stemmed, or by reason of accidents to minas or machinery, 
obstructions on the Railway or In the Docks: or by reason of floods, frosts, logs, storms or any cause 
beyond the control of the Charterers, not to be computed as part of the loading time (unless any cargo 
be actually loaded during such time). In the event of any stoppage or stoppages arising from any ot 
these causes continuing for the period of six nmning days from the time of the vessel being ready 
to load, tills Charter shall become null and void, provided, however, that no cargo shall have been 
Bhipped on board the Steamer previous to such stoppage or stoppages. In case of partial holiday, or 
partial stoppage of Colliery or Collieries from any or either of the aforenamed causes, the lay hours 
to be extended proportionately to the diminution of output arising from such partial holiday or.stop- 
page. If longer detained. Charterers to pay one Shilling per ton on steamer's net register per day (per 
running hour] demurrage. No deduction of time shall be allowed for stoppages, unless due notice 
be given at the time to the Master or Owner. If any dispute or difference should arise under this 
charter, same to be referred to three parties In the City of New York, one to be appointed by each of 
the parties hereto, the third by the two so chosen and their decision, or any of them, shall be final 
and binding, and this agreement may, for enforcing the same, be made a rule of Court. 

4. The Cargo to be trimmed by men appointed by the Charterers at the tariff rate of the Port. 
5 Bunker Coals to be kept properly separated from the Cargo to Charterers' satisfaction at the 

Steamer's expense and the quantity to be endorsed on the Bills of Lading. If any Cargo is carried 
In a hold communicating directly with the Stokeholds, the doors to be securely fastened on the 
Cargo side. 

6. The Bills of Lading shall be prepared In accordance with the Dock or Railway weight In the 
form endorsed on Charter, and shall be endorsed by the Master, Agent or Owner, weight unknown 
freight and all conditions as per this Charter, such Bills ot Lading to be signed at the Charterers' or 
Shippers' Office, within twenty-four hours after the Steamer Is loaded. 

7. The Act of God, the King's Enemies. Restraints of Princes and Rulers, and Perils of the Seas 
excepted. Also Fire. Barratry of the Master and Crew, Pirates, Collisions, Strandlngs and Accidents 
of Navigation, or latent defects In, or accidents to, Hull and/or Machinery, and /or Boilers, always 
excepted, even when occasioned by the negligence, default or error in Judgment of the Pilot. Master. 
Mariners, or other persons employed by the Shipowner, or for whose acts he Is responsible, not 
resulting, however, in any case from want of due diligence by the Owner of the Ship, or by the Ship's 
Husband or Manager. Charterers not answerable for any negligence, default, or error in judgment 
of Trimmers or Stevedores employed in loading or discharging the Cargo. The Steamer has liberty 
to call at any ports in any order, to sail without Pilots, to tow and assist vessels in distress, and to 
deviate for the purpose of saving life or property, and to bunker. It Ls also mutually agreed that this 
shipment is subject to all the terms and provisions of and all the exemptions from liability contained 
lalthe Act of Congress of the United States, approved on the, 13th day ot February, 1893, and entitled 
"An Act relating to Navigation of Vessels." etc. 

8. The Cargo to be taken from alongside by Consignees at (Port of Discharge.] Marseilles, free oi 
expense and risk to the Steamer, at the average rate of six hundred (GOO) tons per day. weather per- 
mitting. Sundays and holidays excepted, provided Steamer can deliver it at this rate: and at Genoa, 
Spezzia, Naples, Savona, Leghorn. Civlta at the customary rate per day according to the Italian scales for 
discharging and stevedoring; if longer detained. Consignees to pay Steamer demurrage at the rate of 

> Clauses enclosed in [ ] were eliminated from the printed form; those In Italics were Inserted with 
typewriter. 



TRIP OR VOYAGE CHARTERS 223 

Form 70a. — Coal Charter Party — Welsh Form {Continued) 
one sMllino per net register ton per running day (or pro rata for part thereof). Time to commence 
(when Steamer is ready to unload and written notice given,! from arrival of Steamer at or off port, 
whether in berth or not. In case of strikes, lockouts, civil commotions, or any other causes or acci- 
dents beyond the control of the Consignees which prevents or delays the discharging, such time la 
not to count unless the Steamer is already on demurrage. Consignees to effect the discharge of the 
Cargo, Steamer paying oiio shilling at Marseilles or according to customary Italian scale if at one of 
above-mentioned Italian ports per ton of 20 cwt., or 1,015 kilos, and providing only steam, steam- 
winches, winchmen, gins, and fails. 

9. The FREIGHT to be paid in advance [it required by the Owner] on signing Bills of Lading 
(ship lost or not lost), in Cash, less 3 per cent, for Insurance and Interest at sight rale of exchange; 
I (the Owner or his Agents giving Charterers or Shippers written notice before the .Steamer com- 
mences loading, if any advance freight is required), and the remainder on right delivery of the 
Cargo, In sufficient Cash for Steamer's ordinary disbursements at current exchange, and the balance 
(unless otherwise arranged between the Owners and Charterers) by a good and approved Bill on 
London at three Months' date, or In Cash equal thereto at Captain's option. The Receiver of the 
Cargo to be bound to pay freight on account during delivery, if required by the Captain. The 
Charterers' account at port of loading to be paid when rendered, otherwise the Charterc-s may deduct 
It on settlement of freight at port of destination (together with a charge of three per cent, to cover all 
charges Including Insurance and interest.)] 

10. The Steamer to be free of address at Port of Discharge, but to pay the usual Commlasion ol 
Two per cent., on the amount of Freight on signing Bills of Lading. 

Charterers have option of mating the Address Cummi3:Hon payahle at Port of Discharge. 

11. In case of Average, the same to be settled according to York/Antwerp Rules, 1390, and as If 
the vessel were British. Should the vessel put into any Port or Ports leaky or with damage, the 
Captain or Owner shall without delay inform the Charterers thereof. 

Captain to Telegraph Charterers in case of putting in anywhere. 

12. Loading hours not to commence before 9 a. m. on August 20th and if .Ship be not ready In 
loading dock as ordered before 9 a. m. on September 20th, 1915, or if any wilful misrepre.?entation be 
made respecting the size, position or state of the Steamer, Charterers to have the option of cancelling 
this Charter, Jsuch option to be declared on notice of readiness being given. 

Charterers to supply first class bunker coals reguired at loading port at $3.25 per ton of 2,240 lbs., if 
Baltimore or SS.40 if Virginia, trimmed in bunkers. 

13. The Charterers' liability shall cease as soon as the Cargo Is shipped, and the advance of 
Freight, Dead Freight, and Demurrage in Loading (if any) are paid, the owner having a lien on the 
Cargo for Freight, Demurrage and Average. 

14. Penalty for non-performance of this Agreement, proved damages, not exceeding the estimated 
amount of Freight. 

15. A commission of five per cent, and the customary Freight Brokerage is due by the "Vessel on 
signing of this Charter Party to BOWRING & COMPANY, Vessel lost or not lost, whose Agents at 
Port ol Loading are to attend to ship's business on customary terms. 

Witness to the Signature of (Signed) Company 

(Signed 

Witness to the Signature of 

(Signed) As Agents by cable authority ol London 

(Signed) The Co.. Inc. 



charter unless in particular instances special modifying pro- 
visions were written into the printed form. The printed form 
was modified only in that the steamer was free of weighing 
charges at the ports of discharge. The sugar charter of the 
United States Shipping Board which has been used since 1917 
is also a gross charter with minor modifications. The shipper 
or his agent is responsible for the expense of towing between 
Savannah and the refinery at Port Wentworth, and the vessel 
is free of weighing charges at ports of discharge. 

An example of a modified semi-net charter party is the 
Savannah (lump sum) charter. Its charter rate, which is un- 
usual in that it is based upon net register tonnage of the 
vessel instead of upon cargo tonnage, is "in full of all 
port charges and pilotages." The "charterers are to pay 
for loading cargo and compressing cotton at loading port, 
but no other charges." The "asphalt charter" commonly used 
when steamers are chartered to carry asphalt from Trinidad 
to the United States is primarily a net charter. It holds the 



224 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



charterer responsible for the expense of loading cargo at Brigh- 
ton, Trinidad, and for discharging it in the United States, but 
provides that the steamer is ''to pay seven cents per long ton 
for trimming asphalt in bulk and ten cents per long ton for 



11 



o I 



•S S ■? !" t' t 



J||||| 



3.1 
i ^ ! 

1 i ^ I 

t 5 a * 



S i 
■a 5 



5 ^ 



I 5 i 

•5 "a o 



11 



I I ui 



Form 70B. — Reverse of 70A 

asphalt in barrels." The so-called "pixpinus" charter governing 
chartered shipments of pitch pine requires the charterers to "pro- 
vide and pay a stevedore to do the stowing of the cargo under 
the supervision of the master, to supply dogs and chains (at 
their risk), pay wharfage, custom house tonnage, quarantine 
dues (but not fumigating expenses or other special charges con- 



TRIP OR VOYAGE CHARTERS 225 

sequent upon sickness of the crew), and consular fees for en- 
trance and clearance, harbor master fees, and pilotage in and 
out of the port of loading, at four dollars per St. Petersburg 
standard of 165 cubic feet, on the entire cargo taken on board 
at port of loading." 

Sufficient examples have been cited to make it clear that 
many trip charters are neither gross nor net in all respects 
and that there are many variations in the charter provisions 
that govern the rights and responsibilities of owners and char- 
terers. There are so many special trip charters that the greatest 
care is essential on the part of owners or operators, charterers 
and ship brokers whenever any particular chartering transaction 
is undertaken. 



PART THREE 
OCEAN RATES AND REGULATION 



CHAPTER XIV 
OCEAN FREIGHT CLASSIFICATIONS AND TARIFFS 

One of the differences between rail and ocean traffic prac- 
tices is the relatively small extent to which ocean freight is 
classified. While railroad freight agents regularly use freight 
classifications in the quotation of rates, many of the principal 
ocean lines do not classify freight. In the North Atlantic trade 
of the United States with Europe, which is heavier than that 
of any other ocean route, no general classification of freight 
has been adopted by steamship lines, the only exceptions being 
the German lines which before the war classified freight shipped 
from Germany to the United States into six classes. To date 
the classification of the ocean freight has been the exception 
rather than the rule. 

A number of lines, however, have classified freight. The New 
York and Cuba Mail Steamship Company (Ward Line), operat- 
ing from New York, and the Kerr Steamship Line and Wolvin 
Line, operating from New Orleans to Mexican ports, provide 
for three numbered classes — 1, 2, and 3 — and rate certain addi- 
tional articles at ly^ and double the first-class rates. The United 
Fruit Co. in its services from New York and New Orleans to 
Pacific ports in Colombia, Ecuador, Peru and Chile publishes 
tariffs which contain four numbered classes and additional rat- 
ings of double, four and five times the first-class rates for cer- 
tain articles. The Panama Railroad Steamship Line in its tariffs 
covering traffic from New York to Colon and Cristobal names 
five numbered classes and also higher ratings of 1 1-5, l}^, and 
double first-class and double second-class rates for some iterps ; 
and in its tariffs covering traffic from New York to Pacific 
ports in Colombia, Ecuador, Peru and Chile it provides four 
numbered classes and lists some articles at double and five 
times the first-class rates. The Gulf Foreign Freight Commit- 
tee Lines, including the Atlantic Steamship Lines of the South- 
em Pacific Railroad, the Munson Line, United Steamship Com- 

229 



230 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

pany, Peninsular and Occidental Steamship Company, and the 
United Fruit Company classify traffic shipped from Key West, 
New Orleans and Galveston to Havana and Cuban out ports 
into the classes provided for in the Official Classification of the 
eastern trunkline railroads, i.e., six numbered classes, two rules 
(Rule 25 and 26) and in certain instances multiples of Gass 
No. 1. 

The failure of many ocean lines to classify freight traffic is 
due, at least in part, to the presence of tramp competition, to 
the competitive character of berth cargoes, to the making of 
traffic arrangements for shippers in many instances by for- 
warders, and to the long-standing custom of charging ocean rates 
at stated amounts per ton, weight or measurement, ship's option. 

Ocean Tariffs 

Although the publication of rate tariffs by ocean steamship 
lines is somewhat more common than the classification of ocean 
freight, the relative scarcity of published ocean tariffs is like- 
wise in sharp contrast with railroad practice. Steamship lines 
engaged in the coastwise trade are under the shipping act of 
1916 required to publish tariffs showing their maximum charges 
and to file them with the Shipping Board, but those engaged in 
the foreign trade are not required to do so. 

It is the exception rather than the rule for steamship lines 
engaged in the foreign trade to publish rate tariffs. Instances 
that may be cited include the lines operating between the United 
States and the ports of Mexico and the West Indies; those 
operating between the United States and the west coast of South 
America; and some of the trans-Pacific steamship lines. Rates 
were published by the German lines on westbound traffic from 
Germany to the United States in connection with the freight 
classification mentioned above, and steamship agents at various 
American ports have published so-called rate cards showing 
rates to European ports, but the North Atlantic steamship lines 
do not regularly publish tariffs. The trades between the Atlantic 
ports of the United States and Australasia, the Orient, Africa, 
and the east coast ports of South America are also characterized 
by a general absence of published tariffs. The freight agents of 
steamship lines that do not publish tariffs are provided with 



FREIGHT CLASSIFICATIONS AND TARIFFS 



231 



tariffs or rate sheets for their own use in quoting rates, but the 
shipper is usually not permitted to consult these unpublished 
tariffs. 

Published ocean freight tariffs, moreover, are confined to the 
regular line service. The rates at which tramp vessels are 
chartered, except during the war emergency, when they were 
under direct Government control, fluctuate almost constantly, and 
very largely in accordance with current changes in the relation 
between the supply of and demand for tonnage. Charter rates 
in normal times have not been stabilized in published or un- 
published tariffs; each charter rate has usually been the result 
of bargaining. 

The contents of published ocean tariffs may be divided into 
three main parts. In case the issuing lines classify freight traffic, 
one part contains a statement of such classification and a list of 
classified articles with the class assigned to each. A second 
part contains the published freight rates, — class rates for each 
class in case the issuing lines classify freight, and commodity 
rates for each of the various commodities contained in an al- 
phabetically arranged list. There may also be general cargo 
rates per ton, weight or measurement, to cover articles not as- 
signed specific class or commodity rates. The sample page show- 
ing class and commodity rates from shipside New York to 
Tampico, Vera Cruz, Puerto Mexico, and Progreso, Mexico, is 
taken from the published tariff of the New York and Cuba Mail 
Steamship Company. (See Table I.) 



TABLE I 
Sample Page from Ocean Tariflf Stating Class and Commodity Rates. 

Item 22 CLASS RATES 



TO 



Tampico (See Item 21)...^^^^ 1 00 lbs. 



1 . 125 cu. ft. 

2.25 



Vera Cruz 
Puerto Mexico 
Frogreso 



fl.I2§ c 

\2.25 I 



h cu. ft. 
00 lbs. 



1 . 12J cu. ft. 

2.25 100 lbs. 

ri.i6| cu. ft. 

\2.32l 100 lbs. 



52 1 cu. ft. 

65 100 lbs. 

52 1 cu. ft. 

05 100 lbs. 

52§ cu. ft. 

05 100 lbs. 

56I cu. ft. 

12J 100 lbs. 



45 cu. ft. 

90 100 lbs. 

45 cu. ft. 

90 100 lbs. 

45 cu. ft. 

90 100 lbs. 

49 cu. ft. 
972 100 lbs. 



232 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 



Item 23 



COMMODITY RATES 



COMMODITY 



Per 



Tampico Vera 
(See Item 21) Cruz 



Puerto Progreso 
Mexico 



Acid, Muriatic and Sulphuric, 
in carboys, not exceeding 
255 lbs. each 

Acid, Sulphuric, in iron drums 

Automobiles, Boxed 

Bags and Sacks, Jute 

Barley 

Beans, viz.: 

Cocoa 

Vanilla 

Blankets 



Carboy $4.72^ 

100 lbs 1.50 

Cu. ft 30 

100 lbs 

100 lbs 75 



Bonds and Stocks 

Bran 

Brick, Common or Fire 

Bullion, Gold and Silver Bars 

and Bullion 

Cement, in barrels 

Cement, in bags 

Clay, Fire or Common 

Coal 

Codfish, in cases 

Corn 

Cornmeal 

Cornstarch 

Currency (Except Specie) 

Diamalt 

Fertilizer 

Flour, Corn, Rye and Wheat. 

Formaldehyde 

Gasoline 

Grease (Soapstock) 

Glucose 

Hay 

Iron and Steel Articles, viz. : 

Angle ' 

Band 

Bar 

Beams 

Beams, brake 

Boiler 

Bolts 

Cams, Dies, Heads, Shoes 
and Tappets (Cast Iron 
or Steel) for Stamp Mills 

Chain 

Channels 



Cu. ft. 

Ad Valorem. 

Cu. ft. 

or 
100 lbs. 
Ad Valorem. 

100 lbs 75 

100 lbs 75 



.4I3 

lV6% 
.90 

lV6% 



Cu. ft. 

or 
100 lbs. 



■ 35 
.70 



54-723 

1.50 
.30 
.56^ 
•75 

• 41I 

iV6% 



$4-72§ 
1.50 
•30 
.56i 
•75 

.41J 



Ad Valorem. iV6% 

100 lbs 44 

100 lbs 50 

100 lbs 75 

Special 

100 lbs 90 

100 lbs 75 

100 lbs 75 

100 lbs 75 

Ad Valorem. ^% 

TOO lbs 84 

100 lbs 75 

100 lbs 75 

100 lbs 1.23 

100 lbs 3.60 

100 lbs 75 

100 lbs 75 

Special 



•35 
.70 



$4 



95 
49 



.90 

•75 
•75 

iVb% 

•44 

•50 

•75 
Special 

.90 

•75 

•75 

•75 
H% 

.84 

•75 

•75 
1.23 
3.60 

•75 

•75 
Special 



.90 



•45 
■97l 



lV6% lV5% 

.75 -82^ 

•75 •82I 



lV6% 

•44 

•50 

•75 
Special 

.90 

•75 

•75 

•75 

5/8% 

.84 

•75 

•75 
1.23 
3 -60 

•75 

•75 
Special 



lV6% 

.66^ 

•83 
.82^ 
Special 

!82i 

.82§ 

.82^ 
M% 
• 91^ 
.82^ 
.82^ 
1.302 
3^67i 
.82^ 

.82^ 

Special 



• 35 
.70 



•39 

.77f 



A third part of the ocean tariff contains the shipping rules 
that shall govern. While no standard code of tariff rules has 
been adopted, the following may be noted as typical of their 
general character : a statement to the effect that the rates con- 



FREIGHT CLASSIFICATIONS AND TARIFFS 233 

tained in the tarifif are subject to change without notice; that 
commodity rates take precedence over any class rates that may 
be published ; that a mixture of various articles in a single pack- 
age takes the highest rate for any article included; that the 
published rates are based upon a stated value limit, and that 
articles of greater value are required to pay the published rates 
plus a stated percentage of their value ; that the minimum charge 
shall be that expressed in the line's bills of lading; that rates 
shall be prepaid, although this is not a universal practice ; that 
the published rates do not include marine insurance ; and that 
certain named articles, such as glassware, crockery, and fragile 
articles as to breakage, oil and liquids as to leakage, and perish- 
able goods as to frost, heat and decay, and deck cargoes are 
accepted at owner's risk. Packing requirements are also con- 
tained in some of the published ocean tariffs, and when livestock 
is shipped the shipper may be required to arrange for their feed 
and attendance, or if the ship's crew cares for the livestock, to 
pay for such service in accordance with a scale of pay published 
in the tariff. 

During the war, when rates reached an unprecedented level, 
a so-called war surcharge was provided for in some of the 
tariffs. In some instances the payment of "primage," constitut- 
ing 5 or 10 per cent, of the freight charges, is still provided for. 
In the past primage was a special charge to provide a fund for 
the officers and crew in order to encourage care in loading and 
storing cargo, but it has in later years been merely an addition 
to the freight charges to be disposed of by the steamship line 
in its discretion. Many lines have abandoned the practice of 
charging primage. 

Tariff rules may also contain provisions to the effect that the 
published rates do not apply if the weight of a package exceeds 
a stated maximum amount. The number of copies of the bill 
of lading to be provided for the carrier's use may be stated. 
The contents of the bill of lading as to the naming of the con- 
signee, the statement of weights for each item or in other re- 
spects may be defined, and the tariff may for the convenience of 
the freight agent and shipper contain the principal consular re- 
quirements of the foreign countries to which the cargoes are 
destined. 

Published ocean tariffs do not necessarily contain all the rates 



234 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

actually charged by the issuing lines, and the published rates have 
not always been strictly adhered to. They are moreover applic- 
able only to the regular cargoes of the steamship lines, the rates 
at which berth cargoes are accepted being highly competitive in 
character and usually subject to bidding between lines and 
tramps and between the lines themselves. Much freight is also 
covered by time contracts, in which special rates are granted to 
shippers who in return for such rates and an assured service 
agree to book with the contract lines all or a specified part of 
their overseas shipments to certain ports during agreed periods. 

Ocean Rate Quotations 

In the past the general practice of ocean lines in quoting 
rates was to state them at a given number of dollars and cents 
or shillings and pence per ton, weight or measurement, ship's 
option. There was little if any difference between the rates on 
different commodities. The rate at a particular time was so 
much per ton and the ship operator had the option of computing 
the freight charge either on the basis of an avoirdupois ton of 
weight or a measurement ton of space. The weight ton usually 
was the long ton of 2,240 lbs., and the measurement ton usually 
represented 40 cubic feet. It depended upon the bulky or 
weighty character of a commodity as to whether it would go as 
weight or measurement cargo, and the carrier had the option of 
selecting the basis which yielded the greater revenue. 

In later years the practice of charging different rates for dif- 
ferent commodities became more common, but many of these 
rates continue to be quoted on the basis of the ton, weight or 
measurement, ship's option. More ocean line rates are quoted 
on this basis than on any other. The weight ton is the English 
ton of 2,240 lbs., or less commonly the metric ton of 2,240.6 lbs., 
or the short ton of 2,000 lbs. The measurement ton is 40 cubic 
feet, unless in connection with particular commodities it is spe- 
cifically defined otherwise. The option possessed by the carrier 
when rates are quoted on this basis is highly important to both 
the steamship line and the shipper. A rate of $25 per ton, 
for example, would in case of a package weighing 2,240 lbs., but 
measuring 60 cubic feet, mean the collection of $30 instead of 
$25, as the published rate of $25 per ton is the equivalent of 50 
cents per cubic foot. 



FREIGHT CLASSIFICATIONS AND TARIFFS 235 

Many ocean line rates are quoted in terms of smaller units 
than the ton, the carrier, however, retaining an option as between 
the weight and measurement basis. Two rates may be quoted 
for a particular class or commodity, one at so much per 100 
lbs. and the other at a stated amount per cubic foot, the carrier 
charging whichever in a particular shipment results in the 
larger sum. 

There are also many instances in which the optional rule is 
not specifically applied in connection with particular commodi- 
ties, although their relative weight and measurement is consid- 
ered in fixing such rates. Thus, grain rates are sometimes quoted 
per bushel or per quarter of defined weight ; flour, per bag or 
barrel; coffee, per bag; case oil, per case; liquids, acids, etc., per 
carboy, drum, or similar unit; lumber, per M feet; cement, 
barbed wire, and other commodities, per weight ton; rosin, per 
280 lbs. ; cotton or wool, per bale ; bricks, per M ; dynamite, 
per pound; or live animals, per head. The use of specific units 
other than weight or measurement for quoting rates is mainly 
confined to those trades in which standardized bags, cases, bales, 
or other commercial units have been widely adopted by ship- 
pers. 

Rates may also be quoted in terms of a percentage of a com- 
modity's value. Shipments of gold bullion or coin are in many 
instances assigned an "ad valorem" rate, equal to 5^ of 1 per cent. 
or other per cent, of their value. The extra rates charged over 
and above the regularly quoted rates, in case a shipment of any 
kind of cargo exceeds the value limit fixed in the tariff rules or 
bill of lading, are also in many instances fixed at a percentage of 
the commodity's value. 

The charter rates or hire paid to the owner of a vessel 
operated under a trip or voyage charter, as in the case of line 
freight rates, are usually based upon the weight ton, measure- 
ment ton, or other unit of the particular commodity that is being 
shipped. Under time charters the payment to the owner is 
usually based upon the deadweight tonnage of the vessel if it is 
a cargo carrier, and upon the gross register tonnage of the vessel 
if it is a passenger steamship. Lump sum payments and other 
variations from the usual practices in the chartered service have 
been more fully discussed in the chapters dealing with charter 
parties. 



CHAPTER XV 

OCEAN RATE-MAKING 

The distinction between ocean line and chartered freight 
services that was noted in connection with their organization 
and management is equally fundamental in a discussion of ocean 
freight charges. Line and charter rates are made differently; 
their bases are different and the forces influencing them differ 
in some respects. 

Ocean Line Rate-Making 

Before the war the ocean conferences described in Chapter V 
provided the organization or machinery through which most of 
the freight rates of ocean lines were determined. Their im- 
portance was reduced during the war when the general level of 
rates reached a high point, when the lines had no difficulty in 
obtaining cargoes, and when the rates of many lines were subject 
to direct government control ; but when the emergency created 
by the war disappears there is every likelihood that the lines will 
again make their rates cooperatively through conferences. In 
some instances the actual rates were agreed upon; in others the 
rate agreements provided minimum rates below which the actual 
charges of the conference lines would not go but above which 
they would fluctuate as fixed by the individual lines ; and some 
rate agreements extended differential rates to indirect lines or 
to direct lines providing inferior services so as to enable them 
to share in the available traffic. As the bulk of the export trade 
of the United States was carried in foreign vessels, many of 
which were operated by foreign steamship lines, the line rates 
on exports were in some instances established by conference 
committees located in foreign ports. In other instances the con- 
ferences were conducted at American ports. 

The governing principle of the conferences in making ocean 
line freights has been to fix them at "what the traffic will bear."^ 

236 



OCEAN RATE-MAKING 237 

The cost of the service and the length of the voyage are not the 
principal rate factors. The Hnes aim to maintain their rates at 
a level which will yield the largest revenues in the long run 
rather than for a single voyage. Rates fixed at what the traffic 
will bear are not, in periods of normal business, set at the high- 
est possible level consistent with the moving of such traffic as 
is awaiting shipment, for maximum revenues depend in part 
upon the steady development of the volume of ocean traffic. The 
exorbitant charges demanded during the war, when there were 
more cargoes than available ocean tonnage, temporarily set aside 
the usual desire of the lines to develop traffic. It is worthy of 
note that charter rates in the tramp service which are largely the 
result of bargaining and are not made by conferences, likewise 
advanced rapidly when hostilities began in Europe. 

In fixing line rates at what the traffic will bear the conferring 
agents have usually been forced to consider the competitive 
forces which in all ordinary peace times have persisted in ocean 
shipping and international commerce. While the prevalence of 
line conferences makes it clear that regular line rates are not the 
result of unrestricted competition, it is equally clear that the 
occasional arbitrary advance or maintenance of a rate does not 
comprise evidence that the conference lines have a complete 
monopoly over line rates. 

"Some competition between conference steamship lines per- 
sists even though they cooperate in the making of their charges. 
The conferences control and restrict rather than eliminate com- 
petition. Even when the absolute rates are fixed in conference 
committee meetings, the effects of competition are not v/holly 
avoided, for the wishes of the weak and strong conference lines 
need to be heeded. Their competition is verbal rather than 
physical. Its form is changed and its severity modified, but its 
life is not extinguished. On some routes, moreover, certain in- 
dependent lines continue to operate, although the competition 
maintained by them is limited. 

"A distinction needs to be made between the regular cargo 
rates of ocean lines and their so-called 'berth cargo' rates. 
The berth cargo of lines consists mainly of commodities such as 
grain or case oil which line vessels frequently carry to fill surplus 
cargo spaces not taken up by traffic which they carry at regular 
line rates. Berth cargo rates are frequently reduced to a low 



238 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

level at large ports, such as New York, which are served by many 
regular lines. At times such cargoes are carried in lieu of bal- 
last, and their rates are regarded as profitable so long as they 
yield anything over and above the immediate costs incurred in 
handling them. They are explicitly excluded, in many instances, 
from the commodities whose actual or minimum rates are fixed 
in conference; or are subjected to only a modified amount of 
control. The minimum rate agreements of the lines operating 
between the United States and the United Kingdom before the 
outbreak of the war in Europe, for example, did not cover grain, 
flour, oil cakes, cotton and similar heavy, bulky commodities. 
In regard to grain, the lines merely agreed not to accept more 
than specified quantities per vessel at less than three cents per 
bushel. 

"Although ocean liners and tramp vessels are mainly engaged 
in different services, the rates charged for the services of ocean 
lines are nevertheless influenced to some extent by tramp com- 
petition. The competition is particularly acute in the fixing of 
berth cargo rates, because the commodities carried by lines as 
berth cargoes are especially adapted to transportation in ship- 
load lots. At large ports, for example, where many lines con- 
gregate, the lines sometimes obtain most of the grain cargoes, 
but at rates that are in a large measure influenced by tramp 
competition. 

"The general cargo rates of the lines are less subject to tramp 
competition, but even they are not wholly free from its influence. 
Shippers of iron and steel manufacture, and other heavy goods 
that may be shipped either in ship-load lots or as general cargo, 
frequently have a choice of services; and should the line rates 
on general cargo that is usually handled almost exclusively by 
the lines become unreasonable as compared with the cost of 
chartering vessels, tramp competition may at any time become 
an active factor. As is stated by Mr. P. A. S. Franklin, presi- 
dent of the International Mercantile Marine Company, the tramp 
service is under such conditions available both to small and large 
shippers : 

Neither the large nor the small shipper is ever at the mercy of the 
steamship lines if rates advance to a point which may be thought to 
be unreasonable. If the rates exceed or even approximate the rates at 
which tramp steamers can be chartered, large shippers of special com- 
modities immediately protect themselves by the employment of tramps 



OCEAN RATE-MAKING 239 

for the transportation of their shipments; and small individual shippers, 
who cannot accumulate merchandise in quantities sufficient to justify 
the chartering of tramp steamers, are at such times served by chartering 
brokers, who are always ready, when rates by the regular lines advance 
to such a point that a profit can be made by chartering, to lay chartered 
steamers on the berth, themselves accumulating the shipments of num- 
bers of small merchants, who by this means can always protect them- 
selves against oppression. 

"When a tramp vessel is placed on the berth by a ship broker 
or speculator as here stated, it is, of course, not engaged in the 
tramp service as that service is ordinarily conducted and under- 
stood; the tramp is temporarily engaged as a general carrier. 
It is, however, from among the world's fleet of tramps that 
such vessels are chartered. 

"Ocean line rates are further influenced by the indirect compe- 
tition known as 'market' or 'commercial' competition. Many 
American exports to non-European markets, for example, need 
to be marketed in competition with similar goods offered by 
European exporters. This obliges the lines serving thie ex- 
porters of the United States to maintain a degree of parity be- 
tween their rates and those in effect from Europe to a given 
competitive market. The effect of this competition is similar to 
the well-known force of industrial and commercial competition 
upon railroad charges, but differs in that it is more largely in- 
ternational in scope. Its influence upon the rate activities of 
ocean conferences is clearly shown in the following statement 
by Mr. WilHam Boyd, president of Houlder, Weir & Boyd, Inc. : 

Deprived of the protection offered by the system of rebates or some 
other effective tie upon the shipper, the existence of conferences depends 
entirely upon affording the shipper a satisfactory service and reasonable 
rates. This is the position of the American conference. Theoretically, 
working under an agreerrent in a trade where there is no outside com- 
petition, conferences can arbitrarily fix rates. They do fix them, but 
they cannot, because of the international character of the over-sea trade 
and the freedom of the ocean to everything that floats, maintain an 
unreasonable rate for any length of time. An unreasonable rate on 
any commodity can result only in that commodity being supplied by 
some other country, and the loss of its carriage to the conference lines. 
This would not be good business, nor would it be good policy. 

. . . The whole history of the shipping business has proved the folly 
of conferences which tried to trade upon an apparent monopoly, and 
experience and self-interest have evolved the present-day conference 
idea, which is combination for the development of trade, and restraint 
only of wasteful competition amongst themselves. It must surely b? 
evident that, in a business where the buyer has the opportunity of buying 



240 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

in the United States, England, Germany, Belgium or France, the carrying 
line from America must help the American seller or shipper to make 
his sale. If the sales are not made, there is no freight to carry. The 
proper answer to the question therefore is, that while theoretically a 
conference enables the lines to establish rates, such rates cannot be 
arbitrary, but must be reasonable. Self-interest demands that they must 
enable the shipper or merchant to compete with the shipper or merchant 
of other manufacturing countries. 

"Market competition also exerts an influence over the relative 
ocean rates charged to or from different ports of the United 
States. The rates from American ports to Cuba, as described 
in the report of the Committee on the Merchant Marine and 
Fisheries, are typical : 

It may be added that the rates from New York are about the same 
as those from the Gulf ports, and that in the case of most articles it 
would be impossible for the Gulf ports to enjoy a differential since 
the Atlantic lines would meet the rates. . . . The New York and Cuba 
Mail Line, the principal line from New York, is a member of the Gulf 
Foreign Freight Committee for the purpose, as stated by the manage- 
ment of the line, that "we may obtain information as to the freight rates 
from the Mississippi Valley to the seaboard and from the Gulf to the 
Cuban ports in order to enable us to meet their competition." Only 
in the case of grain and packing-house products, because of the greater 
nearness to the territory producing the same, do the Gulf lines probably 
make the rates, the same being followed by the New York lines with 
a view to developing trade from their territory. 

"The rate parity maintained between competitive countries and 
rival ports is by no means absolute. Yet a relationship is main- 
tained, and this is ordinarily true even when the services avail- 
able to American shippers are offered under foreign flags. Fla- 
grant discriminations, however, have occurred at times, and 
these, although they are exceptional, have contributed their 
share to the desire for a larger American deep-sea marine and 
for a measure of public regulation. Unfair discriminations are 
less likely to occur in the future, because the Shipping Board, 
mentioned above, has the power to correct any rate that is un- 
justly discriminatory between shippers or ports or against 'ex- 
porters of the United States as compared with their foreign 
competitors.' Even in the absence of regulation the transporta- 
tion disadvantages of American exporters have sprung mainly 
from unequal services rather than from unequal ocean rates. 

"Although ocean line rates are largely determined in confer- 
ence in accordance with the commercial requirements of inter- 



OCEAN RATE-MAKING 241 

national commerce and the limits set by direct and indirect com- 
petition, various additional rate factors are instrumental. The 
value of the commodities carried is considered in determining 
what the traffic will bear. Particularly is this the case when 
different rates are assigned to different commodities, or when 
an ocean line adopts a freight classification. 

"Ocean line rates are also influenced by differences in the value 
of the services rendered. Slower or indirect lines are frequently 
accorded differentials because the value of their service is less 
than that of faster or more direct lines, and unless their rates 
are lower they would, in years of normal shipping, fail to ob- 
tain their proportionate share of the traffic. The value of the 
service likewise determines the maximum above which neither 
individual class and commodity rates nor ocean line rates as a 
whole can be permanently maintained. 

"The relative supply of, and demand for, tonnage and cargoes 
influence line rates somewhat. Ocean conferences tend to pre- 
vent the constant rate fluctuations which would occur if supply 
and demand were the sole consideration, but the conference 
lines are not loth to increase their charges in case a shortage of 
tonnage should occur. Neither could they maintain their line 
rates at a high level throughout a long period of insufficient 
shipping and surplus tonnage. The exorbitant advance in ocean 
rates since the outbreak of the war in Europe is due, in large 
part, though not entirely, to a relative shrinkage in available 
ocean tonnage. The gradually increasing volume of freight as 
against the reduction in active merchant tonnage caused by the 
destruction of belligerent and neutral tonnage, the seizure of 
merchant ships for transport, hospital, supply and other war 
purposes, the enforced idleness of nearly the entire ocean ton- 
nage of Germany and Austria, and the reduced merchant ton- 
nage output of the world's shipyards during the first two years 
of the European War, have enabled the lines as well as the 
ocean-going tramps to raise their rates to an unprecedented level. 
Conditions of supply and demand frequently cause wide varia- 
tions in opposite directions over a particular route. 

"It is clear that line rates are fixed primarily at what the traffic 
will bear, i.e., in accordance with the commercial and competi- 
tive forces mentioned above ; yet the cost of the services rendered 
by the lines is also a rate factor. Cost of the service influences 



s 



242 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

line rates in two general ways. First, it determines the minimum 
below which the general level of line rates on a given route may 
not long be maintained. The lines do not establish their rates 
by computing their total costs and adding to this an amount to 
yield a profit, but they resist any reduction that causes rates to 
be lowered to the cost of the service, and they advance their 
rates in case their costs rise to a higher level and commercial 
j conditions do not prevent. A portion of the increase in ocean 
} rates since the outbreak of the war is traceable to the resulting 
increase in insurance costs, terminal charges and running ex- 
penses, including the outlay for wages, supplies and fuel. Should 
the costs of a particular line, however, differ widely from those 
of competitive lines or other lines performing similar services, 
it may at times find itself unable to maintain its rates at a profit- 
able level. 

"The second way in which the cost of service influences line 
rates has to do with the making of the rates on particular com- 
modities as distinct from the general level of all line rates. 
Particular rates are seldom based upon the total cost of service 
chargeable to an individual commodity on a cost accounting 
basis. Should special expenses of any kind, however, arise in 
connection with a particular article, it may be obliged to pay 
a higher rate than other commodities, provided always that com- 
mercial conditions do not prevent such action. In case trans- 
shipment costs are incurred, moreover, or special expenses arise 
in handling a consignment in port, the special amounts are, in 
many instances, added to the line rates in the freight bill that is 
submitted for payment. The extent to which particular rates 
are influenced by the cost of service depends in a large measure 
upon whether the commodity in question is relatively free from 
or subject to competition. 

"Since distance or the length of an ocean voyage is a cost-of- 
service factor, it follows that it likewise is not a controlling 
rate basis. The rates on commodities, the movement of which 
is not controlled by active commercial competition or competi- 
tion between ocean carriers, are gauged generally, although not 
precisely, in accordance with distance. Thus the rates on ar- 
ticles such as grain, flour and provisions shipped from the United 
States to Europe vary widely as regards ports of destination. 
On the other hand, the rates on traffic that is more subject to 



OCEAN RATE-MAKING 243 

commercial or market competition are frequently blanketed over 
many ports regardless of relative distances. Differences in the 
volume of inbound or outbound traffic, or in the relative ability 
of different trades to bear a higher or lower rate, may cause 
distance discrepancies involving hundreds and even thousands 
of miles. Such rate differences cannot be taken at their face 
value, for they may at times be due to differences in the quality 
or amount of service performed by the various lines. They are 
usually traceable, however, to the fundamental practice of mak- 
ing ocean rates at what the traffic will bear. Commercial.expedi- 
ency rather than the cost of the service has been the ocean 
r^te -makers' guide." ^ 

Ocean Charter Rate-Making 

As was stated in Chapter V ocean conferences in the chartered 
service are relatively unimportant. The business organization 
for making charter rates is consequently very different from that 
prevailing in the Hne service. In the overseas trade, charter 
rates are not made cooperatively by a limited number of con- 
ference committees. Except when under direct government con- 
trol, as was the case during the war, they are usually the result 
of bidding or bargaining between vessel owners or agents and 
shippers or other charterers. The bargaining may be conducted 
directly or more commonly through ship brokers, and it may 
also be facilitated by organized grain, produce, or maritime ex- 
changes. Charter rates resemble the prices of grain or other 
farm staples in that they may change many times in the course 
of a single day. 

While competitive forces exert an important influence over 

ocean line rates, in making charter rates, competition dominates 

the entire rate structure. No prices are more competitive than 

charter rates in the overseas trade; they fluctuate with every 

noticeable change in the relation of traffic to ocean tonnage. Local 

conditions of supply and demand cause rate variations, but the 

governing competitive forces are world wide in scope. The 

owners of ocean going tramps throughout the commercial world 

are in normal times of peace in direct competition with each 

other to secure desirable cargoes, and when bidding for cargoes 

* The paragraphs in quotation marks are taken from the "Principles 
of Ocean Transportation" by E. R. Johnson and G. G. Huebner. 



244 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

of grain, case oil, iron and steel, and other heavy, bulky com- 
modities also sought by the lines either as berth or regular car- 
goes, this direct competition between the tramps is supplemented 
by line competition. 

Government Rate-Making 

Under the Shipping Act of 1916 the United States Shipping 
Board has the power to prevent unreasonable ocean line rate dis- 
crimination in the foreign trade, but it cannot prescribe line rates 
in the absence of such discrimination, and ocean charter rates 
are specifically excluded from its jurisdiction. Its rate-making 
powers, aside from the prevention of unreasonable discrimina- 
tion, are limited to domestic shipping in interstate commerce. 
After the United States entered the war, however, the President 
was granted rate powers by special act of July 18, 1918. The 
Shipping Board had in fact begun to prescribe charter rates for 
requisitioned vessels even before the enactment of this legisla- 
tion. This war emergency legislation, however, specifically em- 
powers the President to "require that vessels of the United 
States of any specified class or description, or in any specified 
trade or trades, shall not be chartered unless the instrument in 
which such charter is embodied, and the rates, terms, and condi- 
tions thereof are first approved by him" ; also "that no citizen of 
the United States or other person subject to the jurisdiction 
thereof, shall charter any vessel of foreign nationality unless the 
instrument in which such charter is embodied and the rates, 
terms, and conditions thereof are first approved by the President." 
The same act provided that "the President shall have power to de- 
termine, prescribe, and enforce reasonable freight rates and the 
terms and conditions of affreightment which shall govern the 
transportation of goods on vessels of the United States, which 
shall be filed with the United States Shipping Board and open to 
public inspection. It shall be unlawful to charge or collect any 
compensation for the transportation of goods on any such vessel, 
or to enforce or attempt to enforce any terms or conditions of 
affreightment, or to make or receive any payment or do any 
act with respect to such transportation not in accordance with 
the rates, terms, and conditions so prescribed. . . ." 

The ocean rate-making powers of the President were exer- 



OCEAN RATE-MAKING 245 

cised through the Shipping Board. Beginning in September, 
1917, the United States followed the example set in Great Brit- 
ain's Blue Book rates. The base rates for chartered vessels pre- 
scribed by the Shipping Board differed from the British Blue 
Book charter rates, however, in that they did not prevent the 
vessel operators from making highly attractive profits. The pre- 
scribed charter rates varied according to whether the vessels 
were operated under the bare boat or time charters described in 
Chapter XII ; also according to the tonnage of the vessels ; their 
speed, and whether engaged in the cargo or passenger traffic. 
More attention was paid to the cost of service than was custo- 
mary in the chartered service prior to government control, and 
less attention was paid to the forces of supply and demand. 
War conditions simplified greatly the rate-making work of the 
Shipping Board, for the Government had direct control over 
both vessels and cargoes. Under such conditions it was rela- 
tively easy in prescribing charter rates to modify or set aside 
the usual close relationship between the supply of and demand 
for chartered vessels. 

The President through the Shipping Board also exercised his 
"power to determine, prescribe and enforce reasonable freight 
rates," for vessels of the United States and foreign vessels under 
charter to American citizens or the Government in the foreign 
trade. The following excerpt taken from a Shipping Board 
tariff effective January 27, 1919, from the North Atlantic ports 
of the United States to various named ports in Great Britain 
illustrate how the Government prescribed detailed freight rate 
tariffs : 

TABLE II 

UNITED STATES SHIPPING BOARD 

TARIFF NO. 8 Rates of Freight 

From United States North Atlantic Ports 
to 
Liverpool, London, Manchester, Hull, Avonmouth, Bristol, Cardiff, Glasgow, 

Leith, and Belfast 

COMMODITIES NOT ENUMERATED TAKE RATE OF $1.00 PER 100 LBS. OR 50 CENTS 
PER CUBIC FOOT, SHIP's OPTION, EXCEPT DANGEROUS CARGO ON WHICH 
SPECIAL RATES WILL BE QUOTED ON APPLICATION. 

RATES 

Acetate of Lead |i . oo per loo lbs. 

Acetate of Lime i . oo per loo lbs. 

Acetone i • 50 per 100 lbs. 



246 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

RATES — Continued 

Acetic Acid i . 50 per 100 lbs. 

Agricultural Implements i .00 per 100 lbs. or 50c. cu. ft. 

Agricultural Tractors 1 .00 per 100 lbs. or 50c. cu. £t. 

Ammonia i .25 per 100 lbs. 

Apples, in barrels 3.00 net bbl. 

Apples, in boxes 85 net box 

Asbestos 1 .00 per 100 lbs. 

Asbestos Powder l .00 per 100 lbs. 

Asphalt 1 .00 per 100 lbs. 

Auto Trucks 1 .00 per 100 lbs. or 50c. Cu. ft. 

Ball Bearings 1 . 00 per 100 lbs. 

Bark and Roots, in bales and bags, except 

Cascara 1 .25 per 100 lbs. 

Bark, Cascara — See Cascara Bark 

Bars, Black 20.00 per ton weight 

Bary tes 20 . 00 per ton weight 

Beef Extract i . 00 per 100 lbs. 

Belting, leather and rubber 50 per cu. ft. 

Binder Twine, in bundles 1 .00 per 100 lbs. 

Bitumin 1 . 00 per 100 lbs. 

Blocks, Mangle and Maple Roller 1 .00 per loo lbs. 

Blue Prints and Drawings 50 per cu. ft. 

Boat Oars 1 .00 per 100 lbs. 

Boiler Tubes 20 . 00 per ton weight 

Bolts and Nuts 20 .00 per ton weight 

Books 50 per cu. ft. 

Boracic Acid 1 . 00 per 100 lbs. 

Borate of Lime 1 .00 per 100 lbs. 

Spokes, oak 1 . 00 per 100 lbs. 

Spool Wood 1 . 00 per 100 lbs. 

Staples 20. 00 per ton weight 

Starch, in bags i . 00 per 100 lbs. 

Steel Billets 20 . 00 per ton weight 

Steel, cold roller — in boxes 20.00 per ton weight 

Steel Hoops, in coils 20 . 00 per ton weight 

Steel Rails, light not over 30 ft. in length. . 20.00 per ton weight 

Stems 1 .00 per 100 lbs. 

Straw-board 1 . 00 per 100 lbs. 

Syrup 1 . 00 per 100 lbs. 

Thorium 75 per cu. ft. or I % ad. val. 

Tobacco (Kings Warehouse delivery) 2 . 00 per 100 lbs.net (noprimage) 

Tomato Ketchup 1 . 00 per 100 lbs. 

Tula Fiber, in bales 1 . 25 per 100 lbs. 

Turpentine, in bbls 1 . 25 per 100 lbs. 

Typewriters 5° per cu. ft. 

Vanadium 1 .00 per 100 lbs. or l% ad. val. 

Varnish, in bbls 1 . 50 per 100 lbs. 

Vitreous Clay 1 . 00 per 100 lbs. 

Watches 75 per cu. ft. or 1% ad. val. 

Wax I • 00 per 100 lbs. 

White Lead 1 .00 per 100 lbs. 

Wire, in coils, or bbls 20 . 00 per ton weight 

Wire Netting i .00 per 100 lbs. 

Wood Alcohol 1 . 50 per 100 lbs. 

Wood Pulleys 50 per cu. ft. 

Woodpulp 1 . 00 per 100 lbs. 

Wool Noils, in compressed bales, occupying 

100 sq. ft. or less 1 . 50 per 100 lbs. 

In uncompressed bales 2 .00 per 100 lbs. 



OCEAN RATE-MAKING 247 

KATES — Continued 

Wrenches 1 .00 per 100 lbs. 

Zinc 1 . 00 per 100 lbs. 

Zinc Ashes 1 .00 per 100 lbs. 

Zinc Dross 1 .00 per 100 lbs. 

Zinc Oxide i .00 per 100 lbs. 

Issued by 

RATE DEPARTMENT 

Division of Operations. 
Approved : 

J. H. ROSSETER, 

Director of Operations. 

Five supplements to this United Kingdom tariff have been 
issued by the Shipping Board. The Board has similarly pre- 
scribed rates to other parts of the world. Some of the principal 
tariffs are as follows : No. 12B, applying from the Gulf ports to 
the United Kingdom and various continental European countries ; 
No. IIB, from the South Atlantic ports to these destinations; 
No. 9F, from the North Atlantic ports to specified ports in con- 
tinental Europe; No. IOC, from the Atlantic and Gulf ports to 
Europe on cotton; No. 21 A, from the North Atlantic ports to 
the North Africa-Levant-Red Sea district; No. 22A, from the 
North Atlantic ports and Charleston, S. C, to Europe on coal 
and coke; No. 18C, from the North Atlantic ports to Greek- 
Adriatic ports; No. 17D, from the North Atlantic ports to the 
Far East; and No. 5A, from the Atlantic and Gulf ports to South 
America. 

The act of July 18, 1918, under which these tariffs were issued, 
is, however, avowedly a war measure. The rate powers granted 
to the President, as the Act now stands, expire when the treaty 
of peace is proclaimed between the United States and Germany, 
unless the President by proclamation extends the provisions of 
the Act for an additional period, not exceeding nine months. It 
was recently announced by the Shipping Board that its control 
over ocean freight rates on all privately owned and controlled 
vessels will be relinquished in the near future, but that it will 
continue to publish tariffs covering cargoes carried in vessels 
owned or controlled by the Board. 



CHAPTER XVI 
OCEAN RATE-MAKING (Continued) 

While the Freight Traffic Department of a steamship line is 
most directly concerned with the port-to-port freight rates which 
the various lines individually or in conference with others put 
into effect from time to time, it is also concerned with the com- 
bined inland and ocean freight rates on shipments moving be- 
tween interior points in the United States and foreign countries. 
The inland rates to and from interior points exert a distinct in- 
fluence over the flow of ocean traffic, the development of which 
is one of the functions of the traffic organization of an ocean 
carrier. The freight agents, solicitors, and brokers of an ocean 
steamship line, when soliciting traffic, need to be familiar with 
the railroad' rates from interior points in the United States to 
the ports of export, and with the rates on imported cargoes des- 
tined to inland destinations. Ocean freight forwarders when 
quoting through rates to foreign destinations are as much con- 
cerned with inland as with ocean rates, for the through rates 
quoted by them are based upon both. When steamship lines or 
railroads undertake the forwarding of cargoes for interior ship- 
pers, inland as well as ocean rates are likewise a consideration, 
and the importance of both rates to interior importers and ex- 
porters is obvious. 

Inland Rates to and From Shipside 

Most export shipments of carload freight from interior points 
are made on railroad rates which apply to shipside at the port 
of export ; and imports are similarly carried in carload lots from 
the ports to interior destinations on rates applicable from ship- 
side at the ports of entry. The rates on less-than-carload lots 
are more frequently applicable to or from the port, additional 
costs being incurred in transferring them between the railroad 
car and vessel. 

848 



OCEAN RATE-MAKING 249 

Care needs to be taken in quoting the inland rates because 
there are numerous routes with different rates, and one and the 
same route may have domestic as well as special export or im- 
port rates. Between the Central West and the North Atlantic 
ports, for example, there are standard and differential all-rail 
routes ; and standard and differential lake-and-rail routes. There 
is also a Lake-and-Erie Canal route; a Lake-and-St. Lawrence- 
Rail route; a Lake-and-St. Lawrence River route; ocean-rail 
routes tlirough Philadelphia, Baltimore, or Virginia ports ; ocean- 
rail routes via South Atlantic and Gulf ports; and lake transit 
routes for grain. The number of available routes varies at the 
different North Atlantic ports and interior points. A knowledge 
of the so-called "port differentials" should moreover be acquired, 
because rates to and from the various North Atlantic ports are 
fixed so that the rates of one port bear a definite relationship 
to those of the other North Atlantic ports. Steamship lines and 
other shipping concerns located at the ports are vitally interested 
in any change of the existing port differentials that may be pro- 
posed, because a change in their relative inland rates would in- 
fluence the flow of traffic to one port as compared to another. 

If no special export and import rates are applicable to a par- 
ticular export or import shipment the domestic tariffs to and 
from the ports govern. As the domestic rates vary somewhat 
via different inland routes, the routing of the cargoes to and from 
the ports is important not only with respect to promptness of 
delivery, likelihood of damage to freight, and available special 
services and privileges, but also because careful routing may 
reduce the exporter's or importer's freight bill. 

Foreign trade shipments are in many instances entitled to 
export and import rates which are substantially lower than the 
domestic rates. 

Before the war, export and import rate tariffs were in effect 
via the ports of each of the three seaboards, although those ap- 
plicable at the Gulf and Pacific coast ports were more compre- 
hensive than those in effect at the North Atlantic ports. When 
railroad freight congestion, particularly at the North Atlantic 
ports, became acute, efforts were made to restrict and control 
foreign trade rather than to increase its volume, and the Director 
General of Railroads in his rate order of May 25, 1918, ordered 
the cancellation of the import and export rates then in effect. 



250 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

Later, however, a number of export and import tariffs were 
again authorized. A transcontinental tariff, effective May 29, 
1919, for example, names import commodity rates from ship- 
side at Pacific Coast ports on shipments originating at Asiatic 
points and points in the Philippine Islands, Australia, New Zea- 
land, and the Oceanic islands, Central and South America, 
Mexico, and the Hawaiian Islands (when specifically shown in 
individual items) to a large range of destinations in the United 
States and the eastern provinces of Canada. The rates given 
in this tariff for the North Pacific ports apply from shipside, ex- 
cept when the charges for storage, wharfage, loading, unload- 
ing, and handling exceed one dollar per net ton. In such cases 
the excess over one dollar per net ton is collected in addition to 
the stated import rates. At California ports the rates given in 
the tariff apply from shipside and include charges for terminal 
services, regardless of their amount. The tariff also provides 
that in case of import shipments moving from California ports 
to the east through the Gulf ports via rail-and-water routes, other 
than the Atchison, Topeka and Santa Fe lines, marine insurance 
shall be included in the import rates. 

The Railroad Administration has also put into effect export 
rates from interior ports through the Pacific and Gulf ports 
with a view to enabling these ports to compete with the ports of 
the North Atlantic. The Gulf and South Atlantic ports are, how- 
ever, pressing demands for further export and import rate con- 
versions. The increasing interest of all sections of the United 
States in the foreign trade is likely to result in numerous changes 
in existing export and import rates and perhaps in the adoption 
of a larger number of such rates than were in effect before the 
war. The forces which tend to give lower railroad rates to 
exports and imports than to domestic shipments are mainly the 
commercial competition which the United States meets in the 
foreign trade and the rivalry of the ports, each port desiring to 
increase its share of ocean shipping. Should the railroads be 
returned to their owners for operation, the more acute compe- 
tition between them in the foreign than in the domestic trade may 
also become a factor as it was in the past. In the import trade 
there is the further tendency to counteract the effect of pro- 
tective import duties. 



OCEAN RATE-MAKING 251 

Through Rail-Ocean Rates 

In the domestic trade much freight is shipped on through rail- 
and-ocean rates, effective on railroad and coastwise steamship 
Hues handHng joint traffic. The Director General of Railroads 
has established such through rates between many points, and as 
is more fully stated in Chapter XVII the Interstate Commerce 
Commission has jurisdiction over interstate traffic moving partly 
by rail and partly by water. 

In the foreign trade, however, the common practice is to quote 
combination rates, consisting of separate inland and ocean 
rates. Through rail-ocean rates are exceptional in the overseas 
trade. The most recent instances of such rates are the through 
rates on freight shipped by way of certain steamship lines to 
Tampico, Frontera and Vera Cruz, Mexico, through New Or- 
leans, Port Arthur, and Texas City. Until July, 1916, the trans- 
continental railroads also quoted through rates from interior 
points through Pacific coast ports to certain Asiatic and Austra- 
lasian points, the rail proportions, however, being fixed amounts 
and stated separately from the ocean proportion of the through 
rates. Those contained in the tariffs of the Transcontinental 
Freight Bureau were "for information only"; the ocean pro- 
portions were not guaranteed. 

Through rail-ocean rates in the foreign trade were more 
common in the past. Until 1890 the railroads frequently took 
a percentage of fluctuating through rates. The fluctuations in 
ocean freights were so abrupt, however, and the through rates 
to foreign destinations were at times so low as compared with 
domestic rates that many through tariffs were withdrawn. Later, 
the Hepburn Amendment of 1906 to the Interstate Commerce 
Act made it unlawful for railroads to accept a percentage of 
fluctuating through rates, for it requires the publication and 
filing of interstate railroad charges and a notice of thirty days 
before changes become effective. 

When an exporter desires a through rate to a foreign destina- 
tion he ordinarily obtains it from an ocean freight forwarder. 
The separate rail and ocean freight rates are in this case paid 
by the forwarder, while the shipper or his consignee pays a 
through charge to the forwarder.* 
*See Chapter VI. 



252 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

The rail and ocean freight rates mentioned above do not con- 
stitute the entire freight bill of the exporter or importer. It 
also includes such port or terminal charges as are assessed 
against shippers. Charges of this kind are fully discussed in 
the manual on Wharf Management, 

Ocean Passenger Fares ^ 

"The principles governing the making of ocean passenger 
fares are generally the same as those stated in connection with 
ocean freight rates, subject to certain inherent differences be- 
tween the nature of passenger and freight traffic. Over a given 
route they are fixed at varying amounts per passenger subject to 
a threefold variation: (1) They are different via different hues 
or steamers depending upon their relative speed, accommoda- 
tions or the superior character of their services. On the North 
Atlantic route, where the steerage traffic is generally pooled by 
the passenger lines, the steerage fares via given lines or steam- 
ers may, moreover, be advanced relative to those via others with 
a view to directing the volume of steerage traffic so as to main- 
tain the percentages allotted to each line. (2) They vary ac- 
cording to the class of passage selected by the traveler, i.e., ac- 
cording to the passenger service classification maintained by the 
carriers. (3) On a given steamer the cabin fares within a class 
vary for different cabins or staterooms according to their loca- 
tion, reservation for individual passengers or other special con- 
siderations. This gradation of fares is due partly to considera- 
tions of what the traffic will bear and the relative value of the 
service rendered, and partly to cost differences. 

"Though ocean fares are usually fixed primarily at what the 
traffic will bear, the competitive forces affecting them differ 
somewhat from those influencing line freight rates. The force 
of international commercial competition and port rivalry, al- 
though by no means entirely absent, is not so prevalent as in 
freight transportation. Ocean fares, moreover, are not subject 
to tramp competition. Direct competition is limited to the lines 
themselves, and is subject to control by conferences. 

"Prior to the war in Europe there were at least twelve North 

*This section is reproduced from Johnson and Huebner, "Principles 
of Ocean Transportation," pp. 335-337. 



OCEAN RATE-MAKING 253 

Atlantic passenger agreements {see Chart VII in Chapter V), 
through which the heavy steerage traffic moving between the 
United States and Europe was pooled and its fares established 
in conference, and through which minimum first and second- 
class cabin fares were agreed upon. The N. D. L. V. passenger 
agreement referred to in Chapter V, for example, provided 
that 2 

No line has the right to alter its steerage and second-cabin rates without 
previously informing the Secretary. The Board of Secretaries cannot 
compel any line to fix its gross rates for adult steerage passengers at 
less than 100 marks, unless with the consent of the Board of Presidents. 
The lines agree to commence with definitely fixed steerage rates, all of 
which are stipulated in the contract. The lowest cabin rate must be 
at least SO per cent, higher than its steerage rate and 30 per cent, higher 
than the highest steerage rate of any of the other lines. 

"Few passenger conferences or agreements exist outside of the 
United States-European traffic, but the competition in the pas- 
senger business between the lines operating elsewhere is in- 
directly controlled through their many freight agreements. Ex- 
cept on the North Atlantic route the long-distance ocean pas- 
senger traffic is secondary to the freight traffic of the passenger- 
carrying lines. Any agreement concerning division of territory 
or ports, the number of their sailings, vessel tonnage, or number 
of steamers influences passenger as well as freight competition. 

"Ocean fares have fluctuated less, and have, on the whole, been 
maintained at a higher level than freights, both because of the 
difference in competitive conditions mentioned above and be- 
cause of the higher capital, operating and maintenance costs of 
the passenger service. While the economies resulting from in- 
creased size of vessels and efficiency of marine engineering were 
accompanied by lower freight rates, similar economies in pas- 
senger steamers were largely offset by the additional costs oc- 
casioned by increased speed, comfort, luxury and betterments of 
the passenger service. There are times, of course, when ocean 
freights temporarily soar to levels which passenger fares can- 
not approach. The war in Europe, for example, although stimu- 
lating an acute demand for freight tonnage, caused a pronounced 
shrinkage in the volume of the North Atlantic passenger traffic." 

* House Committee on the Merchant Marine and Fisheries, Vol. IV, 
"Proceedings in the Investigation of Shipping Combinations," p. 28. 



CHAPTER XVII 

GOVERNMENT REGULATION OF OCEAN RATES AND 
SERVICES 

Throughout this manual reference has been repeatedly made 
to the customs laws and regulations of the United States and to 
the consular regulations of foreign countries because the legal 
requirements regarding the entry and clearance of vessels and 
cargoes are of direct concern to the traffic departments of 
steamship lines, to the operators of tramp vessels, and to the 
various agencies that have been described. The United States 
Government has also for many years applied its so-called naviga- 
tion lav^s, which comprise a volume of over 550 pages, the most 
comprehensive statute being the Seamen's Act of March 4, 1915. 
They include the vessel registry acts, the measurement laws, the 
tonnage tax laws, and the statutes regulating the seaworthiness, 
safety and inspection of vessels. They include the many pro- 
visions applicable to the nationality, licensing, qualifications, 
powers and number of officers on American vessels; and those 
governing the minimum number of the crew, the shipping of 
certified lifeboat men and able seamen, the ability of 75 per cent, 
of the crew to understand orders given by a vessel's officers, the 
payment of the crew's wages, the agreements under which the 
crew members are shipped, their provisions and water allow- 
ance, the size and condition of their quarters, the number of 
watches when at sea and the number of hours of work when 
in port, the treatment of the crew by officers and the penalty for 
desertion. These and other navigation laws are variously ad- 
ministered by the U. S. Commissioner of Navigation, the Cus- 
toms Service, the Shipping Commissioners, Corps of Engineers, 
Bureau of Public Health, Consular Service, Department of Agri- 
culture, Post Office Department, Navy Department, Steamboat 
Inspection Service, War Trade Board Section of the State De- 
partment, and other federal executive departments, bureaus and 
boards. The principal maritime laws that concern ocean ship- 

254 



GOVERNMENT REGULATION OF OCEAN RATES 255 

pers, ship owners and operators, ship officers and seamen are 
discussed in a separate manual of this series on Lazvs of the 
Sea by Mr. George L, Canfield. Some of them concern steam- 
ship traffic management, but many are primarily apphcable to 
the work of other departments in a steamship company's or- 
ganization.^ 

The administration of ports by local authorities is also a factor 
in traffic management, although one that is more directly con- 
nected with steamship operation. The Federal Government and 
the local, state and municipal authorities exercise dual authority 
in the regulation of piers, wharves, elevators and other facilities, 
port charges and dues, dockage and wharfage practices, health 
and quarantine control, and police supervision. Both exercise 
control over pilots and pilotage although state regulation is in 
this case by permission of Congress.^ 

The purpose of this chapter is to give an account of the extent 
to which the Government regulates steamship services and ocean 
rates, for such regulation is particularly applicable to traffic 
management. 

Passenger and Immigration Laws 

Although the ocean freight and cabin passenger services were 
for many years relatively free from government control, except 
such as resulted indirectly from the customs, consular, and gen- 
eral navigation laws referred to above, steerage passenger traffic 
has been subjected to special regulation since 1882. The pas- 
senger act enacted in that year, as amended to date, limits the 
number of steerage passengers that a vessel may carry; it re- 
quires reasonable steerage accommodations and prescribes the 
minimum space per passenger on steerage decks ; it regulates the 
food, light and air, discipline and cleanliness, medical attention 
and the privacy of steerage passengers. The carriage of cargo 
and stores on steerage decks, and of explosives and livestock on 
vessels carrying steerage passengers is prohibited. The keeping 
of a passenger list is required, and fees are prescribed in case 
of the death of steerage passengers. Inspection of vessels by 

^ See also E. R. Johnson and G. G. Huebner, "Principles of Ocean 
Transportation," Chapter XXIV (General Navigation Laws of the U. S.). 

" Ibid., Chapter X, Ocean Ports and Terminals, pp. 130-135, and Chapter 
XXVI, Aid and Regulation by States and Municipalities. 



256 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

the customs authorities is provided to insure the enforcement 
of the act. 

The steerage service is also affected directly by the United 
Stales immigration laws. Immigrants brought to the United 
States are subjected to examination by the Immigration authori- 
ties, and if found to be afflicted with tuberculosis or w^ith a 
"loathsome or dangerous contagious disease" are excluded. The 
Immigration Act of 1917 also excludes aliens of the following 
classes : — idiots, imbeciles, feeble-minded, epileptic or insane 
persons; persons who have had previous attacks of insanity; 
persons of constitutional psychopathic inferiority ; vagrants ; 
persons with chronic alcoholism ; professional beggars ; paupers, 
and persons with mental or physical defects that may affect their 
ahihty to earn a living; persons likely to become a public charge; 
those who were convicted of or admit having committed a felony 
or other crime or misdemeanor involving moral turpitude; po- 
lygamists and those believing in or advocating polygamy ; an- 
archists and members of anarchistic organizations ; prostitutes and 
white slavers; contract laborers, with certain exceptions, and 
persons coming because of advertisements for laborers printed 
or distributed abroad; persons whose passage is paid by a cor- 
poration, association, society, municipality or foreign govern- 
ment; stowaways, unless otherwise admissible and allowed to 
enter in the discretion of the Secretary of Labor; and children 
under sixteen years of age, unless accompanied by or coming to 
one or both parents or admitted in the discretion of the Secretary 
of Labor as persons not likely to become a public charge. This 
law also excludes, with certain expressed exceptions, aliens over 
sixteen years of age who cannot read the English language or 
some other language or dialect. The immigration of natives 
from Oriental countries is prohibited subject to exceptions con- 
tained in the law or in existing treaties. 

The solicitation of alien immigrants by vessel owners or op- 
erators or by the masters, officers or agents of vessels is specifi- 
cally prohibited and penalized. If any excluded aliens are 
brought to the United States by a steamship company and their 
disease, inability or other grounds for exclusion could have been 
detected at the time of embarkation by means of a competent 
medical examination or by the exercise of reasonable precau- 
tion, the steamshio company may be required to pay specified 



GOVERNMENT REGULATION OF OCEAN RATES 257 

amounts to the customs collector and "in addition a sum equal 
to that paid by such alien for his transportation from the initial 
point of departure, indicated in his ticket, to the port of arrival 
for each and every violation of the provisions of this section, 
such latter sum to be delivered by the collector of customs to 
the alien on whose account assessed." The act of 1917, more- 
over, provides "that all aliens brought to this country in violation 
of law shall be immediately sent back, in accommodations of the 
same class in which they arrived, to the country whence they 
respectively came, on the vessels bringing them, unless in the 
opinion of the Secretary of Labor immediate deportation is not 
practicable or proper. The cost of their maintenance while on 
land, as well as the expense of the return of such aliens, shall 
be borne by the owner or owners of the vessels on which they 
respectively came." Steamship companies are also required, 
with certain exceptions, to pay a head tax of eight dollars for 
every alien immigrant who is admitted by the immigration 
authorities. 

The Interstate Commerce Act 

The Interstate Commerce Act of 1887 as amended to date 
applies directly to the traffic of steamship companies in interstate 
commerce and in the trade with adjacent foreign countries when 
handled partly by rail and partly by water under "a common 
control, management or arrangement for a continuous carriage 
or shipment," and as amended by the Panama Canal Act of 
1912 it applies directly to all interstate traffic handled partly by 
rail and partly by water. In the coastwise and Great Lakes 
trade the Interstate Commerce Commission may establish 
through rail-water routes, maximum joint rates, and maximum 
proportional rates applicable to rail-water traffic; it may order 
the carriers to establish physical connections between rail and 
water carriers; it may order the issue of through bills of lading; 
it may fix rate divisions between the railroads and steamship 
companies; and it may regulate ferries operated and terminal 
facilities used in connection with interstate rail-water traffic. 

The interstate commerce act does not, however, apply to the 
port-to-port charges or services of steamship companies engaged 
in interstate commerce or in the trade with adjacent foreign 



258 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

countries. The only direct powers of the Commission in the 
port-to-port business are embodied in Section 20 of the inter- 
state commerce act, which under a ruling of the Supreme Court 
empowers the Commission to obtain statistical reports and pre- 
scribe a system of accounts covering the port-to-port as well as 
the rail-water traffic of domestic steamship lines who handle 
traffic in connection with the railroads; and in Section 11 of the 
Panama Canal Act which provides that steamship lines owned 
or controlled by railroads with whom they are or might be in 
competition may under certain conditions continue to be so 
owned or controlled with the consent of the Interstate Com- 
merce Commission, but that their rates, schedules and practices 
must be filed with the Commission and become subject to the 
Interstate Commerce Act to the same extent as those of the con- 
trolling railroads. 

The charges and services of steamship companies engaged in 
the overseas foreign trade are not within the jurisdiction of the 
Commission as regards either their port-to-port business or the 
traffic which they handle in connection with the railroads. The 
Commission can regulate ocean carriers in the overseas foreign 
trade only indirectly by regulating the railroads with whom they 
interchange traffic, and the ocean terminals used by the railroads 
in the foreign trade. The Commission can regulate the export 
and import rates of the railroads, their rules and regulations, 
their demurrage and other charges and their practices exactly 
as in case of the domestic traffic of the railroads. The Panama 
Canal Act of 1912 also provides that "if any rail carrier subject 
to the act to regulate commerce enters into arrangements with 
any water carrier operating from a port in the United States to 
a foreign countrj^ through the Panama Canal or otherwise for 
the handling of through business between interior points of the 
United States and such foreign country, the Interstate Com- 
merce Commission may require such railway to enter into similar 
arrangements with any or all other lines of steamships operating 
from said port to the same foreign country." The Commission 
has power to regulate the export and import charges and ser- 
vices of the railroads, but its jurisdiction does not extend to 
the charges and services of ocean carriers in the overseas trade. 

The Interstate Commerce Act as amended in Section 11 of the 
Panama Canal Act contains important provisions regarding the 



GOVERNMENT REGULATION OF OCEAN RATES 259 

ownership or control of steamship companies by railroads. The 
section provides first, that common carriers by water operating 
through the Panama Canal may not be owned or controlled by 
railroads with which they are or might be in competition ; and 
second, that common carriers by water not operating through 
the Panama Canal may not be owned or controlled by railroads 
with which they are or might be in competition imless the In- 
terstate Commerce Commission is of the opinion that such car- 
rier by water is "operated in the interest of the public and is of 
advantage to the convenience and commerce of the people" and 
that the continuation of such railroad ownership or control "will 
neither exclude, prevent, nor reduce competition on the route by 
water under consideration." 

Section 11 of the Panama Canal Act also prohibits vessels in 
the coastwise or foreign trade from entering or passing through 
the Panama Canal if they are owned, chartered, operated or 
controlled by concerns doing business in violation of the federal 
anti-trust laws. 

The United States Shipping Act of 1916 

The Shipping Act of September 7, 1916, was enacted in part to 
aid the American merchant marine and in part to regulate the 
port-to-port charges and services of ocean steamship lines anH 
the relations between them. It does not affect the power or 
jurisdiction of the Interstate Commerce Commission nor confer 
upon the Shipping Board concurrent power or jurisdiction. The 
Shipping Board is given power to regulate the port-to-port traf- 
fic of steamship lines both in the interstate and foreign trades, 
while the Interstate Commerce Commission has power tq_jegTi- 
late such traffic as is handled partly by rail and partly by water 
in interstate commerce, but has no direct jurisdiction over steam- 
ship lines in the overseas foreign trade either as regards their 
port-to-port or their rail-ocean traffic. The functions of the two 
administrative bodies, however, and their respective fields of 
action are closely related.* 

The Shipping Act of 1916 prohibits "common carriers by 

'Dispute has arisen as to the efifect that proposed railroad regulation 
bills now before Congress would have upon the jurisdictions of the Ship- 
ping Board and Interstate Commerce Commission over transportation 
by water in interstate commerce. 



260 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

water" in foreign commerce and in interstate commerce on the 
high seas or the Great Lakes on "regular routes from port to 
port" and also concerns engaged in the business of forwarding 
or in furnishing wharfage, dock, warehouse or other terminal 
facilities in connection with such carriers, from giving any undue 
or unreasonable preference or advantages to a particular person, 
locality or description of traffic. It prohibits them from trans- 
porting the property for any person at less than their regular 
rates by means of false billing, classification, weighing or weight 
reports or by other unjust or unfair device ; and from in any 
way inducing marine insurance companies or underwriters to 
discriminate against competing carriers. It similarly prohibits 
them from disclosing to any persons other than the shipper or 
consignee, except with their consent, any information regarding 
their cargoes that may be used to their detriment. 

The carriers and other concerns mentioned in the preceding 
paragraph are required to file with the Shipping Board a true 
copy or memorandum of every agreement regarding rates or 
fares, special accommodations, privileges or advantages, the 
control of competition, the pooling of traffic or earnings, the 
control of sailings by the allotment of ports or otherwise, the 
limitation of freight or passenger traffic, or any other exclusive, 
preferential or cooperative arrangement. The Board is given 
power to "disapprove, cancel or modify any ocean conference 
agreement which it finds to be unfair as between carriers, ship- 
pers, exporters, importers, or ports, or between exporters from 
the United States and their foreign competitors, or to operate 
to the detriment of the commerce of the United States, or to 
be in violation of this Act." When, however, a conference agree- 
ment is approved by the Board and is lawful under the Shipping 
Act it is excepted from the provisions of the federal anti-trust 
laws. The purpose of Congress was to avoid the disadvantages 
of ocean conferences but to retain their advantages. 

Certain of the disadvantages that have at times been incident 
to ocean conferences are specifically prohibited in the Act. Com- 
mon carriers in interstate or foreign commerce may not pay de- 
ferred rebates, use fighting ships, or retaliate against a shipper 
by refusing or threatening to refuse available space accommoda- 
tions, or by resorting to other unfair methods because he has 
patronized other carriers or for other reasons. Nor may they 



GOVERNMENT REGULATION OF OCEAN RATES 261 

make unfair contracts with a shipper on the basis of the volume 
of freight offered, or unjustly discriminate against any shipper 
in the matter of space accommodations, the loading and landing 
of cargo in proper condition, or the settlement of claims. 

Other regulatory provisions of the Shipping Act of 1916 draw 
a distinction between interstate and foreign shipping. Common 
carriers by water operating on regular routes in the coastwise 
or Great Lakes trades are required to establish and observe just 
and reasonable rates, fares, charges, classifications, tariffs, regu- 
lations and practices throughout their entire port-to-port busi- 
ness. They are, moreover, obliged to file with the Board and 
keep open to public inspection, tariffs showing their maximum 
rates, fares and other charges ; and they may not charge more 
than the charges so filed without the approval of the Board and 
after ten days' notice unless the Board for good cause waives 
such notice. If the Board finds any rate, fare or other charge, 
or any classification, tariff, regulation or practice to be unjust 
or unreasonable, it may prescribe and substitute in place of it 
"a just and reasonable maximum rate, fare or charge, or a just 
and reasonable classification, tariff, regulation, or practice." If 
a carrier by water in interstate commerce reduces its freight 
rates at competitive points below a fair and remunerative basis 
with the purpose of driving out or injuring a competitive coast- 
wise or Great Lakes carrier, it may not again increase such 
freight rates unless the Board after holding hearings finds the 
increase to be justified by changed conditions other than the 
elimination of competition. 

In the foreign trade, on the contrary, the Shipping Board 
under the Act of 1916 can prescribe rates only on the ground of 
unjust discrimination, and the steamship lines are not required 
to systematically file their tariffs, or give a ten days' notice be- 
fore advancing their rates. The Act, however, prohibits charges 
that are "unjustly discriminatory between shippers or ports, or 
unjustly prejudicial to exporters of the United States as com- 
pared with their foreign competitors," and it authorizes the 
Board to correct such unjust discrimination or prejudice. It also 
requires steamship lines, forwarders, and concerns engaged in 
providing wharfage, dock, warehouse or other terminal facili- 
ties in the foreign trade to establish and observe "just and reason- 
able regulations and practices relating to or connected with the 



262 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

receiving, handling, storing or delivering property," and em- 
powers the Board to prescribe a just and reasonable regulation 
or practice for any found to be unjust or unreasonable. "Cargo 
boats commonly called ocean tramps" are specifically exempted 
from these provisions which apply in f(3reign commerce. 

In enforcing the Act of 1916 and exercising its powers the 
Shipping Board may act either on its own initiative or on sworn 
complaints, and it may subpoena witnesses and compel the pro- 
duction of books, documents or other evidence. Its orders, made 
after holding hearings, may with the exception of those calling 
for the payment of money, be enforced by obtaining a writ of 
injunction or other process from a federal district court. Or- 
ders involving the payment of money and reparation awards 
may be enforced by filing suits or petitions in a federal district 
court or in any other court specified in the Act. The Board's 
rate orders are of course subject to review by the federal courts 
in the same way that those of the Interstate Commerce Com- 
mission are reviewable, and as in the latter case the courts will 
probably limit themselves to a consideration of questions of con- 
stitutionality and law. 

The Act of 1916 carries severe penalties for violations of the 
Act. A general money penalty of $5,000 is provided for the 
violation of sections not embodying different penalties. If the 
owner or master of a vessel laden with merchandise refuses to 
accept freight destined to the ports for which the vessel is bound, 
although there is available space and the freight is in proper 
condition, contains no merchandise for which the vessel is not 
adapted and the proper freight charges are oflfered, the Secre- 
tary of the Treasuiy is authorized to refuse clearance. 

The Shipping Act of 1916 is important also because of the 
ship purchase plan embodied in it. It authorizes the Shipping 
Board to purchase, lease, charter or have vessels constructed 
and to sell, charter or lease such vessels upon approval of the 
President and also such as may be transferred to it from the 
Army or Navy. It moreover authorizes the Board to organize 
one or more corporations for the purchase, construction, equip- 
ment, lease, charter, maintenance and operation of merchant ves- 
sels. The Emergency Fleet Corporation was formed under this 
provision. The original fund made available was limited to 
$50,000,000, but this was vastly increased after the United States 



GOVERNMENT REGULATION OF OCEAN RATES 263 

entered the war and an acute tonnage emergency arose. The Act 
provides that the operation of vessels by any such corporation 
in which the United States is then a stockholder shall discontinue 
within five years after the conclusion of the war is proclaimed 
by the President, and that the corporation shall then be dissolved. 
The Shipping Board to which the corporation's vessels and other 
property shall revert, "may sell, lease or charter such vessels as 
provided in section seven and shall dispose of the property 
other than vessels on the best available terms." 



War Control of Ocean Shipping 

Although the Government ship purchase plan inaugurated in 
the Shipping Act of 1916 was the immediate result of the ship- 
ping emergency which had developed since the beginning of 
the war in Europe, the regulatory provisions of the Act are 
only in part the result of war conditions. They provide for 
regulation which will continue after war conditions disappear 
unless Congress should see fit to legislate otherwise. War con- 
trol of ocean shipping in the United States was not extensive 
until after the Government declared a state of war to exist be- 
tween the United States and Germany. The control then ex- 
ercised far exceeded the permanent regulation embodied in the 
shipping act of 1916. 

In September, 1917, the Shipping Board announced its in- 
tention to requisition all American vessels above 2,500 tons 
dead-weight capacity. It formulated standardized requisition 
charters and controlled the operation of vessels under the bare- 
boat or time charter forms referred to in Chapter XII. The 
War and Navy Departments had, even before this action was 
taken by the Shipping Board, commandeered vessels for their 
own use, and the War Trade Board through its power to issue 
or withhold bunker coal licenses had been exercising a measure 
of control over vessel movements. The Shipping Board also 
chartered many foreign neutral vessels. 

One reason for requisitioning and chartering vessels was to 
control them so that the available tonnage would be used where 
most needed. TJhe other reason was to control rates. The 
Shipping Board began to prescribe charter rates for vessels 



264 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

under its control in September and later it made the following 
announcement regarding vessels under 2,500 tons dead-weight 
capacity: "There are a number of small vessels which are not 
in the requisition size that have been making these (trans- At- 
lantic) trips under extortionate rates, and after consideration 
by the Ship Control Committee it has been decided that, after 
February 20, 1918, no American steamship under 2,500 tons 
dead-weight will be permitted to clear for a trans-Atlantic voy- 
age or to engage in other long voyage trades." 

On July 18, 1918, moreover, Congress enacted special war 
legislation specifically conferring upon the President complete 
power to control the rates, terms, conditions at which American 
vessels are chartered and at which citizens of the United States 
charter foreign vessels. The Act also empowered the President 
to prescribe reasonable freight rates, terms and conditions gov- 
erning the transportation of cargoes on vessels of the United 
States. These powers over charter rates and ocean freight 
rates were exercised by the President through the Shipping 
Board. The operation and management of vessels, directly 
and through private operators and managers is conducted 
through the Division of Operations of the Emergency Fleet 
Corporation. 

Other regulatory steps taken by the Shipping Board included 
the improvement and control of coal handling facilities; the 
control of tugs and barges; and the sending of men to various 
ports to speed up the handling of vessels. War port boards were 
also created in the fall of 1917 to develop and control port facili- 
ties, the New York board consisting of representatives of the 
Shipping Board and the War and Navy Departments. In order 
to reduce the volume of foreign trade and in that way release 
ocean tonnage the Board created a Division of Planning and 
Statistics and sent representatives to various foreign countries. 

Other branches of the Government also exercised regulatory 
functions affecting ocean shipping during the war. The Division 
of Planning and Statistics cooperated with the War Trade Board 
in determining how the volume of imports and exports could 
best be reduced. The War Trade Board having the power to 
withhold licenses and restrict foreign trade acted not only with 
a view to preventing American products from reaching the enemy 
and to conserving food stuffs and Qther products for the United 



GOVERNMENT REGULATION OF OCEAN RATES 265 

States and the Allied countries; it also restricted trade so as 
to release tonnage and facilitate its control and effective use. 
As was previously mentioned, this board likewise exercised a 
direct control over the movement of vessels through the issue or 
refusal of bunker coal licenses. The State and Commerce De- 
partments cooperated in the work of licensing imports and re- 
ducing their volume by sending commercial attaches abroad, 
and various departments encouraged the home production of 
products which were formerly imported from abroad. The 
Food Administration in cooperation with the War Trade Board 
controlled the exportation of grain and other food stuffs. 

The Railroad Administration controlled the movement of ex- 
port freight from the interior to the ports either directly, or in 
the case of New York, through the General Operating Committee 
of the eastern railroads referred to in Chapter XI. It took over 
the important Atlantic and Gulf Coastwise lines, and various 
inland and coastwise waterways. It established a North Atlantic 
Ports Freight Traffic Committee with its main office at New 
York and divisions at Baltimore and Philadelphia to control the 
carload domestic freight, except freight consigned to an officer 
of the U. S. Government, for coastwise vessels ; to make freight 
embargoes effective when issued by the lines serving these ports, 
and to issue railroad shipping permits as exceptions to embargoes 
when conditions warrant. 

A joint "exports control committee" consisting of representa- 
tives of the Railroad Administration, the Shipping Board, the 
War and Navy Departments, and the traffic executives controlling 
Allied traffic was also created. This committee was formed to 
determine the probable amounts of export and domestic freight 
that needed to be handled at the ports, how war freight could 
best be routed to the seaboard, the ports to which specified over- 
seas freight should be transported, and the distribution of the 
total volume of all export freight between the various ports so 
as to facilitate its handling and avoid congestion. 

Two "shipping control committees" to unify the control of 
American vessels and virtually pool thgra with the Allied coun- 
tries were appointed when the confusion resulting from lack 
of close cooperation between the Shipping Board, the Naval 
Transport and the Army Transport services, which were operat- 
ing vessels independently, became apparent, and when it became 



266 OCEAN STEAMSHIP TRAFFIC MANAGEMENT 

clear that cooperation with the Allies in the use of ocean ton- 
nage was desirable. One of the committees consisted of three 
American steamship men, and the other committee which 
brought about cooperation with the Allies consisted of two of 
the members of the American committee and a representative of 
the British Admiralty. These committees were given power to 
divert incoming vessels away from congested ports to what- 
ever ports were at a particular time best able to receive them, 
and to select the ports from which outbound vessels were to 
clear. 

This war control of ocean shipping is mentioned because 
some of it is still in effect and because it may have an influence 
upon regulation in the future. Most of it seems, however, to be 
of a temporary character and destined to disappear or to be 
greatly modified as normal conditions approach. Many of the 
restrictions on foreign trade and ocean cargoes, for example, 
have already been raised and the stringent powers over ship- 
ping granted to the President in the Act of July 18, 1918, will 
come to an end when the treaty of peace is proclaimed, or within 
nine months from such date. The traffic department of steam- 
ship lines will, however, continue to be concerned with the cus- 
toms and navigation laws, with the passenger act and immigra- 
tion laws, the Interstate Commerce and Panama Canal acts, with 
the Shipping Act of 1916, and with whatever remnants of war 
control may co.ntinue or new legislation b? enacted. 



INDEX 



Agreements, preferential, dj. 

American-Asiatic pool, 64. 

American Express Company, 
foreign tariffs of, 81. 

Argentine certificate of origin, 
164, 165. 

Arrival notice and freight bill, 
109. 

Associations of steamship own- 
ers, 16. 

Baggage department, 43. 
Baltic pool agreement, 61. 
Berth cargo rates : competition 

in, 237; distinction between, 

and regular cargo rates, 

236. 
Bill of lading clerks, duties of, 

24. 
Bills of lading, ocean. See Ocean 

bills of lading. 
Board of General Appraisers, 

158. 

Bond to produce complete mani- 
fest and export declarations, 
129. 

Booking records, 87-88. 

Branch seaboard offices, 26. 

Brazilian consular invoice, 
161. 

British Blue Book rates, 244. 

Brokerage, rate of, 79. 

Bunker fuel, stores and supplies, 
application and license for, 
132. 

Cabin department, subdivisions 

of, 35-37- 
Calcutta-Pacific pool, 64. 



Canadian invoice of goods sold 
by exporter prior to shipment, 
167, 168. 

Cargo: affidavit and agreement 
governing disposition of, 131 ; 
application and permit to al- 
low unpermitted, to remain up- 
on wharf, 143; general permit 
to lade or unlade, 142; pre- 
liminary application to lade or 
unlade, 140. 

Cargo contracts and booking rec- 
ords, 87-88. 

Cargo vessels, operating as 
tramps, 12. 

Carrier's manifest of merchan- 
dise in bond, 158. 

Certificate of inspection, 117. 

Certificate of registry, 115, 116. 

Certificate of origin, 162, 164. 

Certificates of purity, 150. 

Charter parties : gross form, 202- 
210; net form, 210-216; time, 
185-201 ; trip or voyage, 202- 
225. 

Charter rate-making, 242, 243. 

Charter rates: how based, 233; 
prescribed during war by Ship- 
ping Board, 262. 

Charter traffic: conferences and 
pools difficult in, 58. 

Charters : during war control of 
U. S, shipping, 261 ; types of, 
in ocean shipping, 185. 

Chartered service, 10-13; types 
of, 44. 

Chartered steamship services, or- 
ganization and administration 
of, 44-54 



267 



268 



INDEX 



Chartered vessels, cooperation 
among, 56. 

Chartering department, 8. 

Clearance clerks, 25. 

Clearance of vessel to a foreign 
port, 130, 135. 

Coal charter party: Welsh form, 
222, 223. 

Coastwise lines: control of, by 
Railroad Administration, 263. 

Coastwise trade : not open to for- 
eign vessels, 57; regulations of 
Shipping Act concerning, 259. 

Combination lines, 4. 

Commercial invoices, 166. 

Commercial time charters, con- 
ditions of, 190-194. 

Competition: a dominating 
factor in charter rates, 242; 
by "fighting ships," 66; control 
of, through conference agree- 
ments, 60; influence of, 238, 
239; in freight forwarding 
business, 82-83; in making of 
passenger fares, 250; in ocean 
passenger business, 251 ; in 
rate making, 236; methods of 
controlling, between confer- 
ence lines, 65, and non-confer- 
ence lines, 66; rates, 69. 

Comptroller's department, 9. 

Conference agreements in char- 
tered ocean service: 56; dis- 
rupted by European War, 58; 
provisions of Shipping Act 
regarding, 258, 

Conferences: advantages of, 68; 
complaints against, ()"]; im- 
portance of, reduced during 
war, 235 ; ocean line, 58. 

Conferences, pools, and rate and 
traffic agreements of ocean 
carriers, 56-70. 

Construction department, 8, 

Consular documents, special, 170. 

Consular invoice : provisions of, 
151-156; regulations governing, 
160-162, 



Consular officers, certify bills of 
lading, 160. 

Cooperation among chartered 
vessels, 56; in ocean line busi- 
ness, 57. 

Court of Customs Appeals, 158. 

Currency certificate, 156. 

Custom house brokers: fee paid 
to, 158; shipping documents 
used by, 157, 158. 

Customs attorneys, 159. 

Customs permit, 108. 

Customs regulations, code of, 
156. 

Deferred rebate system, 66. 

Delivery order, 109. 

Delivery receipt, ill. 

Demurrage charges, 209. 

Department of operations, 8. 

Differential rates, 62. 

Dock receipts, 91-93. 

Dock sheets, 94. 

Documents required on clearing 

a vessel in the foreign trade, 

118-130. 
Documents required on entering 

a vessel in foreign trade, 130- 

144. 
Drawback privilege, 150. 

Ellis Island, immigrant agent at, 
40. 

Emergency Fleet Corporation, 
formation of, 260. 

Engineer department, 8. 

Export bill of lading, 103-104. 

Export cargoes, method of hand- 
ling, at New York, 175. 

Export declaration, 146, 147. 

Export licenses, during the war, 
98, 150. 

Export meat inspection cer- 
tificate, 149. 

Export rates from interior 
points, 248. 

Export trade of the United 
States, Shipping Documents 



INDEX 



269 



Required by Foreign Govern- 
ments in, 160-170. 

Exporters: disadvantages of 
American, 239; official docu- 
ments required of, 146-151. 

Exports, special inspection cer- 
tificates needed for, 149. 

Express business : difference be- 
tween foreign and domestic, 

77- 

Express companies, internation- 
al business of, 73, 74, 75. 

Express lines, 4. 

Fares, see Ocean Passenger 
fares. 

"Fighting ships," (>^. 

Final notice of arrival, 109. 

Foreign Governments, Shipping 
Documents Required by, in 
United States Export Trade, 
160-170. 

Foreign trade: activity in, by, 
freight forwarders, 74; author- 
ity of Shipping Board regard- 
ing rates in, 259; combination 
rates, in, 249; competition in, 
248; documents required on 
clearing a vessel in the, 118- 
130; documents required on 
entering a vessel in, 130-144; 
foreign consular requirements 
in, loi ; increasing interest in, 
248; report of entrance or 
clearance of vessels in, 130; 
shipments, special rates for, 
247. 

Forwarder's bill of lading: 178, 
179; provisions of, 181. 

Forwarder's expense bill, 182, 

183- 

Forwarder's lighterage instruc- 
tions, 176. 

Forwarder's shipping instruc- 
tions, 173, 174. 

Forwarder's trucking instruc- 
tions, 177. 

Forwarder's waybills. 181, 182. 



Freight agencies, 26-28. 

Freight agents, duties of, 27. 

Freight agreements in North 
Atlantic-European trade, chart 
of, opp. 62. 

Freight brokerage and forward- 
ing charges, 79, 80. 

Freight tclassification : 229-232; 
economic value of, 71. 

Freight contracts, 87. 

Freight department : connection 
of, with other departments, 
30; inbound, functions of, 28, 
29 ; outbound, clerical and so- 
liciting staff in, 23-24. 

Freight engagement record, 88. 

Freight forwarder: branch of- 
fices of, 75; business organi- 
zation of, 74; chart of, 76; de- 
partments in office of, 79; for- 
^ig'^j 75; forwarding staff of, 
78 ; main profit of, 81 ; nature 
of services of, 71 ; obtaining 
of rates by, 249; take entire 
charge of export shipments, 
^2; transaction, a typical one 
described, 171-184. 

Freight forwarding business : 
competition in, 82; shipping 
documents used in ocean, 171- 
184. 

Freight forwarding charges, 79- 
80. 

Freight forwarding, ocean, 71- 

79- 

Freight offices abroad, 27. 

Freight rate agreements. North 
Atlantic-European, 62. 

Freight rates, see Rates. 

Freight traffic department : chart 
of organization of, 19; func- 
tions of, 18; organization of, 
18-31. 

Freight traffic manager : duties 
of, 20, 21 ; outbound, duties of 
22, 23. 

General cargo gross form chart- 
er party, 203, 204. 



270 



INDEX 



General cargo net form charter 
party, 212, 213. 

General order issued to customs 
inspectors, 145. 

General permit to lade or un- 
lade, 123. 

General steamship operator, 48. 

Government rate-making, 243- 
245; Great Britain's example 
followed in, 244. 

Government regulation of ocean 
rates and services, 252-264. 

Government time charters dur- 
ing the war, provisions of, 
197-201. 

Great Lakes trade, regulations 
of Shipping Act regarding, 

259- 
Gross form charter parties, 202. 

Gross form coal charter party, 

205-206. 

Health certificates, 169. 

Immigrant passenger laws, 253- 

255- 
Immigrant traffic, allocation of, 

40. 

Immigration Act of 1917, provi- 
sions of, 254. 

Immigrants: penalty for viola- 
tion of laws regarding, 254; 
U. S. regulations regarding, 
254, 255. 

Import duties, relation of certifi- 
cates of origin to, 164. 

Importer's declaration and oath, 

157. 

Importers, official documents re- 
quired of, 151-156. 

Industrial bulk carriers: 13-16; 
advantages of, 14. 

Inland rates to and from ship- 
side, 246-248; different rates 
according to routes, 247. 

Insurance department, 10. 

Interstate Commerce Act, appli- 



cation of, to steamship traffic, 

255- 

Lighterage charges, 209. 
Lighterage or trucking instruc- 
tions, 175. 
Line services, nature of, 5. 
Line traffic, nature of, 5. 
List of sea stores, 137. 

Main office booking clerks, 35. 
Main office landing clerks, 36. 
Managing owner, operation of, 

46, 47. 
Manifest clerks, duties of, 25, 
Marine or deck department, 8. 
Marine insurance, 51. 
Master's extension of protest, 

112, 114. 
Master's oath under Seamen's 

Act, 122, 123. 
Measurement rules, by whom 

applied, 115. 
Mediterranean westbound freight 

traffic agreement, administra- 
tion of, 59. 
Minimum rate agreements in 

North Atlantic trade, 61. 
Modified gross and net charters, 

217-225. 
Money pool, described, 62, 63. 

Navigation laws, application of, 
to government regulation of 
ocean rates and services, 252. 

Net form charters, 210-216. 

New York net grain charter 
party, pre-war conditions, 213, 
214; war conditions, 215, 216. 

New York-West African pool, 
64. 

Nitrate charter party, pre-war 
conditions, 218, 219; war con- 
ditions, 220, 221. 

Non-dumping or value certifi- 
cates, 166, 169. 

Nord-Atlantischer Dampfer Li- 



INDEX 



271 



nien Verband conference, 60, 
61. 

North Atlantic-European freight 
rate agreements, 62. 

North Atlantic passenger agree- 
ments, 250. 

Note of protest, 112, 113. 



Oath of master: of steam vessel 
clearing without passengers, 
125 ; on entering American 
vessels from foreign port, 
136; on entering foreign ves- 
sels from foreign port, 137. 

Ocean bills of lading: 98-104; 
export, 103-104; forwarder's, 
178; order, 100; uniform, not 
yet adopted, loi, 104; varia- 
tions in provisions of, 102. 

Ocean conferences, see Confer- 
ences. 

Ocean freight classifications, 
229-232. 

Ocean freight forwarding busi- 
ness, shipping documents used 
in, 171-184. 

Ocean line conferences, organ- 
ization of, 58. 

Ocean line rate-making, 235- 
251 ; see also Rates. 

Ocean passenger fares: 250, 
251; competitive forces affect- 
ing, 250; fluctuation in, 251; 
principles governing making 
of, 250. 

Ocean rate-making, 246-251. 

Ocean rate-making powers dur- 
ing European war, 243. 

Ocean rate quotations, 233, 234. 

Ocean rates: see Rates. 

Ocean services and traffic agen- 
cies, types of, 3-17. 

Ocean shipping, war control of, 
261-263. 

Ocean tariffs: applicable only to 
regular cargoes of steamship 
lines, 232; classification of 



contents of, 231; publication 
of, 230; shipping rules in, 231. 

Ocean transportation services, 
types of, 3. 

"On the berth," 12, 45, 50. 

Overseas trade, not under juris- 
diction of Interstate Com- 
merce Commission, 256. 



Package freight, reduced rates 

on, 73. 
Packages, general order to send 

unpermitted, from wharf to 

public store, 144. 
Panama Canal Act of 1912, 255, 

256, 257. _ 
Parcel receipts, 104, 105. 
Passenger act of 1882, 253. 
Passenger agents, 39. 
Passenger agreements in North 

Atlantic trade, chart of, 60. 
Passenger and immigration laws, 

253-255- 
Passenger carrying lines: special 
function of, 4; variation of, 

3- 

Passenger de|partment, branch 
offices of, 38. 

Passenger list, 138. 

Passenger services, classification 
of, 34- 

Passenger traffic : cooperation 
of, with other departments, 41 ; 
status of, 32. 

Passenger traffic department, or- 
ganization of, 32-43. 

Passenger traffic manager, du- 
ties of, 33-35. 

Permit clerks, 25. 

Permit sheet, 92. 

"Pixpinus" charter, 224. 

Pooling of steerage traffic, 61. 

Pools, conferences and rate and 
traffic agreements of ocean 
carriers, 56-70. 

Pools, ocean line: American- 
Asiatic, 64; Baltic, 63, 64; 



272 



INDEX 



Calcutta-Pacific, 64; discus- 
sion of, 62; Mediterranean 
westbound freight, 64; money, 
62; New York-West African, 
64; traffic, 62. 

Port sanitary statement, 126. 

Port-to-port business, 256. 

Ports, administration of, 253. 

Prima^^e, 232, 

Private carriers, 13-16. 

Publicity department, 37, 4^. 

Purser, 41. 

Radio apparatus when clearing, 
certificate of, 124. 

Radio declaration when enter- 
ing, 138, 139- 

Rate and Traffic Agreements, 
Pools and Conferences in, of 
Ocean Carriers, 56-70. 

Rate competition, conference 
control over, 69. 

Rate-making : charter, 242-243 ; 
government, 243-245; see also 
Ocean rate-making. 

Rates: difference in, on c.l. and 
l.c.l. shipments, 73; differen- 
tial, 62; export from interior 
points, 248; government regu- 
lation of, 257-261 ; increase of, 
during European war, 236, 
241 ; inland, to and from ship- 
side, 246-248; making of, 20; 
obtaining of reduced, through 
freight forwarders, 73; ocean 
line, 235-251 ; prescribing of 
charter by U. S. Shipping 
Board, 262; stability of, re- 
duces speculative uncertainty, 
68; through rail-ocean, 249, 
250; various factors in mak- 
ing of, 239-241. 

Regular lines: function of, 4; 
traffic conditions of, 4. 

Request for immediate clear- 
ance, 128. 

Sailing Ship Owners' Interna- 



tional Union, organization of, 

56. 
Savannah lump sum charter, 

223. 
Ship Brokerage, Organization, 

and Administration of, 49- 

55- 

Ship brokerage business, chart 
of organization of, 52. 

Ship brokerage charges and 
profits, 54, 55. 

Ship brokers : also sell vessels, 
50; correspondents of, in for- 
eign ports, 53 ; "loading Brok- 
er," 49; main work of, 49; 
may become tramp operator, 
47; members of exchanges, 

53- 
Shipper, service to, by freight 

forwarders, 72, 73, 74. 
Shippers : benefit of conferences 

to, 68; contracts with, 67. 
Shipper's export declaration, 

147, 148. 
Shipping Act of September, 

1916: importance of, 260; 

penalties prescribed in, 260; 

rebate system in, 66; regula- 
tory provisions of, 257-260; 

ship-purchase plan embodied 

in, 260; unfair competition in, 

67. 
Shipping Articles, 118-121. 
Shipping Board: charter party 

used by, 200; powers of, 243, 

257-260. 
Shipping control committees, 

263. 
Shipping documents, loi, 106; 

custom house brokers and, 

157, 158. 

Shipping documents required by 
foreign governments in United 
States export trade, 160-170; 
by ocean carriers, 87-114; by 
the United States Govern- 
ment, 1 15-159. 

Shipping documents used in 



INDEX 



273 



ocean freight forwarding 
business, 171-184. 

Shipping permits, conditions con- 
tained in, 88-91. 

Ship-purchase plan embodied in 
U. S. Shipping Act, 260. 

Shipping Rings, report on, 58. 

Ship's manifests, 105-108, 127. 

Ship's register, 115. 

Steamship agents, activities of, 

15- 

Steamship business, custom 
house brokers a factor in, 158. 

Steamship companies, provi- 
sions of Panama Canal Act re- 
garding ownership of, by rail- 
road companies, 257. 

Steamship company, business or- 
ganization of, 6, 7. 

Steamship lines, regular, 3. 

Steamship owners' associations 
in Great Britain, 57. 

Steamship traffic agencies, 15-16. 

Steamship traffic management : 
the railroads a factor in, 15; 
goverament authorities, and, 
17. 

Steerage booking clerks, 40. 

Steerage department, adminis- 
tration of, 39; agents of, 42. 

Steerage landing and railroad 
booking clerks, 40. 

Steerage service, affected by U. 
S. Immigration laws, 254. 

Steerage traffic: pooling of, 34, 
61 ; under N. D. L. V. agree- 
ment, 62, 63. 

Stowage plan, 94, 97. 

Supply department, 38, 41. 

Tally sheets, 94. 

Time charter parties, 185-201. 

Time charter party: New York 
Produce Exchange form, 194- 
196; pre-war conditions, 186- 
187; war conditions, 188, 189. 



Time charters, 45; government, 
197. 

Tourist department, 37. 

Traffic: apportionment of, among 
conference lines, 65-66. 

Traffic agencies and ocean ser- 
vices types of, 3-17. 

Traffic pool, 62, 64; differs from 
traffic a^eement, 65. 

Tramp service, 10-13; availabili- 
ty of, 22^. 

Tsamp vessels : characteristics 
of, 13; disadvantage of, 13; 
fleets of, 46; "on the berth," 
12; operation of, in line ser- 
vice, 12; operation of, 46; use 
of, 12; withdrawal of, from 
tramp service, 45. 

Transcontinental tariffs, 248. 

Traveling freight agents, 26. 

Traveling passenger agents, 37. 

Treasurer's department, 9. 

Trip charter: rate paid for, 206; 
provisions of, 207-210. 

Trip charters: 202-225; many 
variations in, 225. 

United States Steamboat Inspec- 
tion Service, 118. 

Vessel bond, 141. 

Vessels clearing foreign port, 
report of movement and lad- 
ing of, 134. 

Victualing department, 8. 

Voyage charters, 202-225; three 
fundamental classes of, 202. 

War control of ocean shipping, 

261-263. 
War port boards, creation of, 

262. 
War Trade Board, powers of, 

262, 
Wharf department, 8, 30, 31. 



UNIVERSITY OF CALIFORNIA AT LOS ANGELES 



Jiki k^ ^^. THE UNIVERSITY LIBRARY 

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