16 PACKING AND MAKKETING OF COTTON. 



SIGNIFICANT ACTION BY STEAMSHIP COMPANIES. 



In connection with existing methods of sending American cotton to 

 market a movement on the part of agents in this country of steamship 

 companies engaged in carrying the product to Europe has signin- 

 cance. Owing to the fact that in recent cases brought to trial the 

 ocean-carrying companies were held liable for damage to nierchandise 

 for which a clean bill of lading was given upon its reception, steam- 

 ship owners instructed their agents to take the necessary steps to 

 guard their companies against this liability. Agents representing 

 practical] V all the ocean-carrying companies held a meeting at New 

 Orleans on April 16, 1912, and after full discussion and deliberation 

 decided that beginning September 1, 1912, the receipt of cotton at 

 ship side " in apparent good order and condition " would be strictly 

 interpreted, and that no clean mates' receipts, mates' receipts, or ocean 

 bills of lading would be issued for cotton which was not delivered 

 to the vessel entirely covered and free of all evidence of damage. 

 This action grew from the fact that it has been customary for the 

 companies to give clean bills of lading for merchandise received from 

 railway companies as well as individual shippers when there was no 

 visible evidence of damage. In suits to recover damages instituted 

 in this country and England it was contended by the companies that 

 they were not liable for damage that had evidently occurred before 

 the merchandise came into their possession. In each case the claim 

 was for country damage to cotton. It was held by the courts in both 

 countries that having issued a clean bill of lading the companies were 

 liable, upon the assumption that the merchandise was therein accu- 

 rately described. The meeting alluded to held at New Orleans was 

 participated in by agents of all ocean lines plying between the 

 Atlantic and Gulf ports and those of Europe. Strict adherence to 

 this resolution would compel shippers to entirely cover cotton, other- 

 wise the documents issued by the ocean companies would be stamped 

 to show the actual condition of the cotton when received at side of 

 ship. 



The action of the steamship representatiyes is set forth in the 

 following, to the strict adherence of which those attending the con- 

 ference obligated themselves and their respective companies: 



That from and after September ], 1912, the receipt "in apparent good order 

 and condition " will be strictly interpreted in regard to cotton or any other mer- 

 chandise, and that no clean mates' receipts, masters' i-eceipts. or ocean bills of 

 lading will be issued for cotton which is not delivered to the steamer thoroughly- 

 covered, free of evidence of damage, durably and legibly marked; that on and 

 after September 1, 1912, railroads will be required to deliver at the office of the 

 agent of the steamship line made a party to any through bill of lading, two (2) 

 certified copies of same within 72 hours after date appearing on said bill of 

 lading; the bill of lading must bear the steamship agent's contract number, 

 under which issuance was authorized; no cargo on through bill of lading will 

 be forwarded until after copies of bill of lading have been delivered to the 

 steamship agent. 



OUTCOME OF CONFERENCE ON SHIPPING COMPANIES' ACTION. 



Vigorous protest was made by cotton exchanges and exporters 

 throughout the country against the action of the steamship agents, 

 and at the instance of the New Orleans exchange a meeting was held 



