8o [March, 1902.] 
IMPERIAL INSTITUTE JOURNAL. 
Vol. VIII. No. 87. 
either captain or time-charterers’ drafts out of freight, but to 
hold same for their account and at their risk. It appeared that 
the owners had chartered the vessel to Messrs. Baars for 
three years, by a charter-party dated 6th October, 1900, and a 
month's hire in advance was due on 2nd August at noon. On 
the 1st August a formal notice of the alleged lien for chartered 
hire was served on defendant on behalf of the owners. The 
question to be decided was whether defendants, who have suffi- 
cient funds in hand to meet the note, are bound to pay plaintiffs. 
His Lordship (Mr. Justice Bigham), in giving judgment, said 
that he did not think that under the circumstances defendants 
could deny plaintiffs' title. They received the money under an 
authority from Messrs, Baar's agent, and with his consent they 
undertook with plaintiffs that if plaintiffs would forward the 
note to them for payment they would meet it out of the money 
to be collected. It appeared to him that having entered into a 
binding promise to pay, they ought to pay, notwithstanding the 
shipowners' intervention. When the owners intervened, defend- 
ants had, he said, become trustees for plaintiffs of so much of 
the ^1,000 already paid by the consignees as would be left in' 
their hands after payment of their own charges, and they were 
bound to hold any further freight they might subsequently re- 
ceive subject to the same trust. Although the captain said in 
the note that he had received £1 ,000 on account of freight, he 
had received nothing, and \vh. n plaintiffs received the note they 
only got the time-charterers’ right to receive the £x,ooo, a 
right which was subject to the shipowners' lien. But before 
the lien could be exercised (there being then no chartered 
freight payable) £1,000 of the bill of lading freight had been 
paid to defendants, who, for the purpose of the. receipt of the 
money, stood in the position of the time-charterers themselves, 
and no lien could afterwards be exercised on that sum. And 
as to the balance which was paid on 3rd August, this also, he 
held, reached the constructive possession of the time-charterers 
before any lien was exercised, for a notice of the existence of 
the lien served on defendants was of no value ; it ought, in 
order to become operative, to have been served on the persons 
who had to pay the freight, not on those who were receiving 
it for the charterers. He gave judgment for plaintiffs for 
y^i.ooo, less any moneys which might be due to defendants for 
disbursements. Leave to appeal was granted. 
Stockbrokers’ Liability. — Oliver v. Bank of England 
(Starkey, Leveson, and Cooke, third parties) was an 
appeal against an order made by Mr. Justice Kekewich, under 
which Mr. W. J. Starkey, a member of a firm of stockbrokers, 
was made liable to indemnify the Bank of England against loss 
through the sale of certain Consols. Sir Robert Reid, K.C., 
who appeared for the appellant, said that Mr. Edgar Oliver 
took an action against the Bank of England to recover the value 
of certain Consols and Bank stock, which had been sold under 
a power of attorney to which the plaintiff's signature had been 
forged, obtaining judgment against the bank. Mr. Edgar 
Oliver was a co-trustee with his brother, Mr. Frederick Oliver, 
since deceased. The latter had admittedly forged Mr. Edgar 
Oliver's signature to the power of attorney under which the 
appellants had acted. The bank counterclaimed against 
Messrs. Starkey, Leveson, and Cooke, and obtained judgment. 
This was the first time that a stockbroker had been made 
liable under such circumstances. Counsel contended that the 
bank authorities, who had the signatures of the trustees, had 
not made sufficient enquiries before transferring the shares to 
the appellants under the power of attorney. Lord Justice 
Vaughan-Williams : In certain cases third parties are not liable. 
For instance, if you go to Victoria Station and, seeing a gentle- 
man standing by a train, ask him if it goes to Brighton and he 
says yes, but it does not, you cannot take an action against him. 
Again, if you ask a policeman wearing the company's uniform 
the question and he says yes, and you go wrong, you cannot 
take an action against the company, because he is not 
authorised to give such information, but you could take an 
action against the policeman for misleading you. (Laughter.) 
Sir Robert Reid assumed that it would be the duty of the man, 
not only to the passenger but also to the company, to tell the 
truth and say which was the correct train. In this case the 
bank made its own enquiries. The authorities had the 
signatures and probably had signed dividend warrants. Both 
the appellants and the bank had been misled. The bank, he 
submitted, had every opportunity for making enquiries, w f hile 
Mr. Starkey had no such opportunity. Lord Justice Vaughan- 
Williams, without calling upon Mr. Green, K.C. , for the 
respondents, said that the brokers, npon presenting the power 
of attorney at the Bank of England, demanded that the 
authorities should effect the transfer of the Consols and Bank 
stock in question. And the Bank of England did so. The 
sole question to be decided was whether or not, as the law stood 
at the present moment, there was raised by implication of law a 
warranty by the brokers upon the authority on which they 
demanded the bank should act. The brokers purported to act 
as agents of both the gentlemen, Mr. Edgar and Mr, Frederick 
Oliver. His Lordship was of opinion that the law did raise an 
implied warranty as against the brokers. The arguments of 
Sir Robert Reid and Mr. Upjohn were most interesting, but his 
Lordship thought that the learned counsel invited the Court to 
deal with questions which were not raised in this case. Indeed, 
most ingenious propositions had been put before the Court. He 
thought that the judgment of Mr. Justice Kekewich must be 
affirmed. Lords Justices Stirling and Cozens-Hardy concurred, 
and the appeal was dismissed, with costs. 
+ 
BRITISH CONSULAR REPORTS. 
Brazil (Sergipe). — The State of Sergipe is separated from 
the Northern portion of Bahia by the River Real, and has an 
area of 26,000 square miles ; the chief port is Aracaju. In the 
Consular report, recently received, on the condition of Sergipe 
for the year 1900, it is stated that the imports amounted to 
4,062,992 milreis (,£203,150), in addition to those goods which 
entered the Slate overland, and which are valued at £i$o,ooo. 
-Dried meat, Hour, petroleum, cement, coal, wine, hardware, 
machinery, cotton goods, and boards were the chief articles 
imported, Aracaju, the capital of the State, contains 20,000 
inhabitants, and a few r fair shops. Near the town there is a 
cotton mill with 5,100 spindles and 156 looms; 400 hands are 
employed, spinners being paid 9d. and weavers is. 6d. per day. 
No night work is done, but the working days average 300 in the 
year, and 300 pieces of white calico (of 30 metres each) are 
turned out daily ; the hands work ten hours daily. Every piece 
of this machinery, mill fittings, looms and spindles, canre from 
Lancashire, the dyed yarns from Manchester, and the steam 
coal from Cardiff. The owners of the mill and the manager are 
Brazilians, and they assured me that they could not wish for 
better goods than we supplied them with, and appeared highly 
satisfied with British work. A smaller cotton mill is running 
near the town, and employs water power. There are 3,000 
spindles and 150 looms, and the working days average" 200 
yearly. The machinery, spindles, etc., all came from America, 
Germany and France. An inspection of the shops in three of 
the chief towns of Sergipe gave the following results : — Germany 
supplies zinc sheets, metal pans and pots, cheap chains for 
hammocks, door locks, and cheap cutlery. The United States 
supply petroleum, most of the galvanised barbed wire, hoes 
and hatchets, and a few cheap tools. The United Kingdom 
sells coals, steel tools (with the exception of files), screws, barbed 
wire, cutlasses, cutlery, iron roofing, hoe heads, knives, strong 
kettles, bar steel, shoe tacks, blacking, ink, and ready-made 
paint in tins. It was further noticed that cotton goods were 
almost exclusively from Manchester (when not of native make), 
but “zephyrs" came from France, and shawls from Germany 
and Austria, whence also conies the w riting paper. In general’, 
we may be said to secure a fair portion of the trade, but the 
Americans are ousting us from the market in barbed wire, and 
the Germans own all the trade in shawls, two very important 
articles. The Consul recommends those British houses who 
rleal with either Bahia or Pernambuco to instruct their agents to 
watch this market closely. Sugar and cotton prices will some 
day rise, and then, with more money, there will be better trade, 
and, unless we wake up, we shall find ourselves left behind. 
The only commercial travellers who visit Sergipe are Brazilians 
travelling for German or native firms. A few smart British 
travellers, who know Portuguese, are wanted, with orders to 
visit the capital and push British goods, A market lost is 
hard to regain, and our German and American competitors 
are, the Consul considers, more energetic than we are. There 
is not a single bank in the Capital, and reliable information 
respecting credits is not easily obtainable. The German sugar 
houses in Maroim keep their friends in Pernambuco and 
Bahia well posted, whereas we can only learn what these 
gentlemen care to tell us. The Consul suggests that one of 
the British banks in either of the above-named towns should 
appoint an agent in Aracaju, to whom British merchants could 
apply for necessary information. 
Somali Coast. — In his report on the trade of the Somali 
Coast Protectorate for the year ending March 31, 1901, the 
Acting Consul-General says that it is as unpleasant as it is rare 
to have to record a decrease in the value of the trade of this 
district amounting to over 11 lacs of rupees (or £7 8,500 odd), 
or something like 13^ per cent, on the average of "the last three 
years. This sudden check in the steady advance of trade must 
be attributed to two causes, both of which may fortunately be 
considered only of a temporary nature, and which may be 
reasonably expected to re-act favourably on the trade of future 
years. The presence of the rebel Mullah in the Ogaden country 
rendered it necessary, for political reasons, to suspend all trade 
between our ports and that country. Thus, for the greater part 
of the year one of our most valuable markets has been closed 
to our traders. There are good grounds for supposing that for 
this reason and the absence of other outlets there are considerable 
accumulations of trade commodities in that country, and that 
on the final suppression of the Mullah and the restoration of 
order these products will find their way rapidly into our ports, 
there to be exchanged for rice, dates, cloth and other necessaries, 
the want of which must soon be seriously felt. Again, the 
abundance of rain and good grazing which this district has 
enjoyed last season, though adversely affecting trade for the 
time being, must inevitably tell favourably in the long run. 
The Somalis being enabled to live on their live-stock and its 
produce, are for the time independent of rice and other pro- 
visions. But at the same time their stock is increasing, and the 
surplus which they find themselves unable to maintain in dry 
seasons, when grazing is scarce, must sooner or later be ex- 
changed for imported provisions and other necessaries. It may 
not, therefore, be unreasonable to predict a return to normal 
figures next year. It has again to be recorded that the bulk of 
the trade of this district is in the hands of American firms 
having their business centres in Aden. They practically 
monopolise the whole of the skin trade and import the greater 
portion of the cotton piece-goods. A few British firms have 
furnished samples of their manufactures, but these do not 
compare favourably either in price or quality with the popular 
American grey shirting, which is still without a rival. 
Uruguay (Montevideo).— Crisis in the Jerked Beef 
Trade. — A Foreign Office report from H.M. Minister- 
Resident and Consul-General at Montevideo states that at 
the present moment the " saladeros," or dry salting estab- 
lishments in Uruguay are passing through a somewhat critical 
period. Their chief product is jerked beef (tasajo or charque) 
which finds its principal market in Brazil. Of late the ex- 
istence of large stocks of this article in the latter country 
has sent down prices to such an extent that there is but a 
small margin of profit for the manufacturers, and now the 
trade finds itself threatened with another danger in the 
shape of an increase in the Brazilian import duty. “Tasajo" 
has hitherto paid 25 reis per kilogram, but the Brazilian 
Customs authorities have now decided to treat it as “ pre- 
served meat," thus raising the duty to 100 reis per kilogram. 
The proposed increase has apparently not yet received the 
sanction of the Legislature, but it is believed in Montevideo 
that it will be passed, and the news has created a considerable 
amount of alarm not only among drysalters but also among 
stock raisers. The present crisis should be a lesson to the 
“saladero" owners, and should teach them not to depend 
exclusively upon the production of an article like “tasajo." 
In Europe it could never find a market, as not the poorest 
peasant would subsist on it. Uruguay is rich in cattle, and it 
seems strange that the greater portion of the meat should be 
used for a primitive article which can only be disposed of in 
certain markets. What science can do is shown by the results 
of Liebig's establishment at Fray- Bentos, and it should encourage 
the “saladero" owners to adopt improved processes and to 
endeavour to produce something suitable to the tastes of 
civilised communities. 
— 
FOREIGN CONSULAR REPORTS. 
Milk Flour. — The United States Consul at Gothenburg 
reports a discovery by Dr. M. Ekenberg which will be of im- 
portance in dairy farming. He claims to have invented an 
apparatus by which milk can be brought into the form of pow- 
der, like fiour in appearance, but possessing all the qualities of 
milk in concentrated form, moisture excepted. It is said that 
this milk flour is completely soluble in water, and can be used 
for all purposes for which common milk is employed. The 
milk flour does not get sour, does not ferment, and in the dry 
state is not sensitive to changes in the weather. In can be kept 
and transported in tin cans, barrels, bags, etc. The cost of pro- 
duction Dr. Ekenberg has estimated at about 27 cents per 106 
quarts, and he thinks that flour made from skimmed milk can 
be sold for about 13 cents per pound. At a recent meeting of 
the Academy of Agriculture, Dr. Ekenberg exhibited samples of 
the milk flour, which received favourable comments. It is con- 
sidered that the invention will be of the greatest importance for 
the utilization of skimmed milk, which heretofore has largely 
been wasted, but in tire dry form can be transported all over the 
country without losing any of its original good qualities. The 
product mentioned is considered superior to the casein products 
“proton" and “proteide" now manufactured from milk by the 
aid of rennet, acid, or lye. 
Openings for Capital in Australia.— The United States 
Consul at Newcastle, New South Wales, in noting the pro- 
hibitory nature of the new federated tariff, prophesies a decrease 
of importations, and sees in consequence an excellent opening 
for capital. The Consul goes into details regarding the lines of 
goods which may be manufactured in the Newcastle district. 
Although he takes much for granted his remarks are nevertheless 
of interest. He states that glassware and crockery may be 
manufactured cheaply, while iron and steel are abundant, and 
the great deposits of ore are close to the coalfields. Materials 
for soap and candles are at hand, match factories would find a 
ready sale for their products, all classes of woollen goods could 
be produced at low rates, and it would pay to make gloves and 
hats along American lines. There is a large sale for washing 
machines, clothes wringers, and various laundry apparatus. 
A few agricultural implements are manufactured, but there is 
a good demand for American mowing machines, reapers, and 
binders. A factory making these machines would do well. 
There is no nail factory here, hence large quantities are imported 
from other countries. A rolling mill equipped to manufacture 
iron articles, from railroad iron or steel and bridge beams to 
kettles, would control the trade of tins country, as well as that 
of the South Sea Islands. Materials for the manufacture of all 
kinds of paints are easily procured at a very small cost. 
Magnificent woods, susceptible of a high degree of polish, arc 
plentiful. With a heavy tariff on paper, a modern mill would 
do well. Much paper is used, especially the cheaper sorts, such 
as wrapping and news paper. Such a thing as a modern paper 
bag, with corners folded, he has never seen in these colonies. 
Rubber Output of the Amazon Valley. — The United 
States Consul at Para reports that at the close of 1901, the 
receipts of rubber at Para were nearly 30 per cent, greater than 
ever before at that season. Business was good in 1900, 
exchange low, and credits easy. The labourers and middlemen 
indulged in many luxuries. The end of the season found the 
crisis at hand, exchange rising rapidly, the gatherers deeply in 
debt, and the price of rubber reduced 20 per Cent. Now they 
are making a desperate effort to payoff this indebtedness and 
make a fresh start. They are getting a large proportion of 
their food from the streams and forests by hunting and fishing ; 
they are purchasing only absolute necessities ; and are Working 
overtime to increase the crop and liquidate their bills. It was 
reported in December that there were on the way down the 
river, from the upper tributaries of the Amazon, about 700 tons 
more rubber than had ever before been shipped from that 
section 'in one season, and that there were at least 200 tons 
more to follow. About 30 small steamers and launches left Para 
and Manaos for the Acre, Jurua, Purus, and Beni rivers, and 
were due to return to Para in February. Altogether, adds the 
Consul, there is reason to believe that this season's rubber crop 
will exceed that of last year by a very considerable margin. 
Trade Prospects in Western Canada. — The United 
States Consul reports that London, Ontario, is developing 
a considerable trade with the North-West Territories, British 
Columbia, and the Yukon country. These are new and 
promising fields, and, since this city is easily reached, it might 
be well for manufacturers and dealers to gain access to these 
new markets. Fire- and paving-bricks of good quality are not 
manufactured in the Dominion, owing to a Tack of suitable clay. 
A profitable trade might be established in this line, since it is a 
matter of daily consideration on the part of the cities and towns 
of this province how to replace the old cedar block pavement, 
which has proved so unsatisfactory. 

CHAMBERS OF COMMERCE REPORTS. 
UNITED KINGDOM. 
Association of the Chambers of Commerce of the United 
Kingdom.— The official programme of the forty-second annual 
meeting of the Association of the Chambers of Commerce of the 
United Kingdom, to be held at the Whitehall Rooms, Hotel 
Metropole, on March 4, 5, and 6, under the chairmanship of 
Lord Avebury (the President), has been issued. The subjects 
that will be discussed include every topic of interest to the com- 
mercial world, and representatives will be present from 
Chambers of Commerce in every district of Great Britain 
and Ireland. On behalf of the London Chamber, a resolution 
will be submitted, to the effect that His Majesty’s Government 
be urged, in the interests of commerce, that, before recognising 
transference of territory by any power, they should insist on the 
policy of the “open door," and should invite the co-operation 
of other States who are similarly interested with this country in 
maintaining existing rights. Recognising the importance of a 
trade route to China, the Liverpool Chamber will urge the 
adoption of the following resolution : “ That this Chamber is of 
opinion that the Mandalay-Kunlon railway should be extended 
without delay to the frontiers of China, and that the project for 
the construction of a line or lines in connection therewith to 
Yunan and Ssuchan should receive the diplomatic and financial 
support of His Majesty's Government and the Government of 
India; or, if any other way of approach by rail to the Chinese 
Provinces named be preferred by the British and Indian 
Governments, this Association would ask that a similar measure 
of support should be given to the contractors of any suitable 
railway by such route," The Halifax Chamber will suggest the 
appointment of a Royal Commission to consider the possibility 
of increasing and strengthening the trade relations between the 
different portions of the Empire. The Paris Chamber of Com- 
merce will be represented, and will submit the following resolu- 
tion in favour of the compulsory use of the metric system of 
weights and measures : “ That, in the interests of British trade, 
the compulsory use of the metric system of weights and measures 
has become imperative." No fewer than three Chambers — 
Leeds, Edinburgh and Sunderland — have placed down resolu- 
tions on the subject of Parliamentary procedure, they desiring 
some reform which will facilitate the despatch of public business, 
and thus permit of legislation in the interests of commerce. 
Quite a number of postal and telegraphic matters are to be 
dealt with, the suggestions being made that telegrams should be 
cheapened ; that underground wires should be adopted, so as to 
prevent the interruption and disorganisation of telegraphic 
communication ; and that additional and improved cables 
should be established between the United Kingdom and the 
Continent. 
Bradford. — At the monthly meeting held on December 29 
Mr. Gustav Hoffmann was re-elected as president, and in his 
address he said that heshould like to begin his second year of office 
with the emphatic assurance that the work of the Law Amend- 
ment Committee was only a fractional portion of the work of the 
Chamber, and that that work had always a most distinct and 
practical bearing upon the objects of the Chamber. The 
Chamber has been truly described as a Trade Vigilance Com- 
mittee, and to all matters which affected the trade of the district 
the Chamber and its secretary had been fully alive. It was 
always their tradition to attach themselves to no particular 
industry or branch of trade ; they looked at the trade of the 
district from a broad point of view, and never allowed them- 
selves to deteriorate to the level of an employers’ union. They 
were also a bureau of information. These statements he sup- 
ported by giving instances of the Chamber's usefulness. 
He did not propose to say anything of the position of trade 
and its prospects, for ihe simple reason that he was not qualified 
to do so, but he pointed out that there had been a decline in 
