MAY 8 Shipping's Share in Foreign Trade Fundamentals of Ocean Transportation i F Guaranty Trust Company of New York Shipping's Share in Foreign Trade Fundamentals of Ocean Transportation Shipping's Share in Foreign Trade Fundamentals of Ocean Transportation T* u Guaranty Trust Company of New York i . 140 Broadway FIFTH AVENUE OFFICE L O N D O N O F FI C E S Fifth Avenue and 43rd Street 32 T Lombard Street, E. C. 5 Lower Grosvenor PI., S.W. MADISON AVENUE OFFICE PARIS OFFICE Madison Avenue and 60th Street Rue des Italiens, 1 and 3 COPYRIGHT, 1919 BY GUARANTY TRUST COMPANY OF NEW YORK Illustrations PAGE Frontispiece 6 More than twenty new cargo carriers being equipped with engines at a shipyard in Newark Bay 8 Products of fields, factories, and mines reaching the port of New York for distribution to the four corners of the earth 10 The constant stream of traffic along the waterfront of New York 11 Huge floats, propelled by tugs, transporting freight cars loaded with goods for foreign markets to ter- minal warehouses in New York City 12 Giant cranes swinging freight aboard a trans-atlantic liner 13 Loading cargo for countries south of the Equator 14 Training Recruits to man our New Merchant Marine 16-17 A freighter, shepherded by puffing tugs, proceeding to her dock at New York 18 Loading cotton for export at one of our southern ports 20 American cotton on lighters in the harbor of Barcelona, Spain 21 Along the docks at Liverpool 22 The picturesque port of Havre, France 23 The busy harbor of Genoa 24 The port of Buenos Aires 26 The harbor of Valparaiso, Chile 27 Shanghai, overlooking the Soochow River 29 American goods en route to their destination in China 30 Before the Civil War America led the mari- time nations of the world. American clip- per ships outsailed all others. Photograph by Edwin Levick Today, for the first time in more than half a century, the United States is in sight of the long-desired goal of transportation American products in American owned and operated vessels. Shipping's Share in Foreign Trade Fundamentals of Ocean Transportation THE necessity for the expansion of our foreign trade is as vital as any con- fronting American industry today. In- creased productive capacity created by the war for war's needs cannot be elimi- nated with the coming of peace without the gravest consequences to the commercial, financial, and economic welfare of the en- tire nation. The machinery assembled to meet the demands of war cannot and should not be wholly dismantled, but must, in large part, be turned into new and permanent channels of production. Capi- tal cannot scrap its investments, nor labor its new-found scale of employment. The country cannot consume all it produces on the present basis of output, and an outlet must be found for the surplus. Commer- cial salvation lies in greater foreign trade through the development of new markets and the expansion of o.ld ones. SHIPPING Transportation is the link between the producer and the consumer the means of 1) ringing the goods to the ultimate buyer. More than ninety per cent, of the exports and imports of the United States are car- ried by w r ater. America's future prosper- ity, therefore, lies largely on the seas. Shipping is the prime factor of interna- tional trade, and that nation is best equipped for such trade that has the best ocean-carrying facilities. For the first time in more than half a century the United States is in sight of the long-desired goal of transportation for the bulk of American products in American owned and operated vessels. Before the Civil War America led the maritime nations of the world. American clipper ships outsailed all others. Amer- ican shipyards stood first in quantity and quality of output. American tonnage was the greatest in volume. Before the present war, however, ship- ping conditions were very different. Ninety per cent, of the foreign trade of the United States was then transported in for- eign vessels. American sea-going tonnage represented barely two per cent, of the world's total. American shipyards were turning out about one ship to Great Brit- ain's six, and producing only about one- tenth of the world's output. Seven- eighths of the registered American ship- ping was engaged in lake, river, and coast- wise trade. Transfer of tonnage from American to foreign registry was increas- ing steadily. OUR PRESENT POSITION Today this position is almost completely reversed. The ocean-going tonnage of this country is more than five times the pre- war total, and about equal to the former combined lake, river, and coastwise ship- ping. American shipyards are producing twice as many vessels as Great Britain, and as many as the United Kingdom and all other countries combined. The Amer- ican tonnage total is within striking dis- tance of England's, and is far greater than that of any other nation. About forty per cent, of the exports and imports of the United States is being carried in American vessels. Nearly half a billion dollars of American private capital has been in- vested in American shipping and ship- building enterprises since the beginning [7 Photo by courtesy of The Rudder More than twenty new cargo carriers being equipped with engines at a shipyard in Newark Bay of the war. Billions have been expended by the Government in the creation of a great merchant navy, and it is planned to spend billions more. A huge organization has been built up which represents hun- dreds of shipways, thousands of ships, hundreds of thousands of workers, and millions of dollars in pay-rolls. TONNAGE TERMS DEFINED The use of different kinds of tons in the official statements of ship destruction and production made by the various Govern- ments has led to much misunderstanding regarding the actual tonnage holdings of the different countries. The statements of the United States Shipping Board are made in deadweight tons, but the United States Bureau of Commerce and Naviga- tion, the British Admiralty, and other or- ganizations use gross tons. In some other countries the net ton is used as the stand- ard. An understanding of the difference 8] in the various kinds of tonnage used in shipping statistics is necessary in order to make an intelligent comparison of the maritime situation. Gross tonnage represents the entire cub- ical capacity of a vessel, in units of 100 cubic feet, including space occupied by cabins, engines, boilers, and coal bunkers. Net tonnage expresses in units of 100 cubic feet the vessel's carrying capacity, the space occupied by cabins, machinery, etc., being deducted. Deadweight tonnage represents the maximum weight of cargo, bunkers, con- sumable stores, and all weight, including passengers and crew. Measurement tonnage is used to ex- press the space cargo takes up rather than its weight. The unit in this case is forty cubic feet. Displacement tonnage is used in the case of warships to denote the actual amount of water displaced by the vessel. For conversion purposes, in dealing with groups of tonnage, roughly, gross tonnage is two-thirds of deadweight, and net two-thirds of gross. For instance, 300,000 deadweight tons are the equiva- lent of 200,000 gross tons. Gross tonnage is most used for commercial purposes and will be employed here, unless otherwise stated. GREAT INCREASE IN OUR SHIPPING How America's shipping has gained during the war and subsequently, while that of other nations has decreased is shown by the contrast between sinkings and seizures and new building. The fol- lowing table (in gross tons) covers the world, the Central Powers excepted: United United Other States Kingdom Countries World At outbreak of War 7,900,000 19,250,000 15,250,000 42,400,000 . . . 900,000 9,000,000 5,100,000 15,000,000 Gross reduction to. 7,000,000 10,250,000 10,150,000 27,400,000 Added by building. 3,400,000 4,800,000 2,500,000 10,700,000 Added by seizures . 500,000 700,000 1,175,000 2,375,000 Tonnage November 11, 1918 .... 10,900,000 15,750,000 13,825,000 40,475,000 Added to April 1, 1919 (net esti- .... 900,000 675,000 550,000 2,125,000 Tonnage, April 1, 1919 .... 11,800,000 16,425,000 14,375,000 42,600,000 Gain or loss . . . t3,900,000 -2,825,000 -875,000 t200,000 With the war losses of ships practically restored the world over (the net deficiency of the Central Powers is estimated at about 2,500,000 tons) there remains to be supplied, as already indicated, the normal increase that would have occurred had not the war intervened. This in the pre-war period was at the rate of slightly more than 2,000,000 tons annually, so that the total deficiency to the beginning of 1919 was about ten million tons. Of America's estimated total of nearly twelve million tons up to April 1, 1919, more than half is sea-going. In fact, Edward N. Hurley, Chairman of the United States Shipping Board, estimates our ocean-carrying tonnage at nearly six and one half million tons. GROWTH OF FOREIGN TRADE The growth of the American merchant marine has been attended by a remark- able increase in the foreign trade of the country. From a total of about four and a quarter billion dollars for the year ended June 30, 1914, the aggregate of the coun- try's foreign trade has now grown to more than nine billion dollars annually, and the excess of exports over imports from half a billion dollars yearly to more than three billions. All the ports of the country have shared in the expansion of trade. How greatly they have shared in it is indicated by the following table, showing the value of the combined exports and imports at the sev- en leading ports for 1913, as compared with 1917: 1913 1917 New York . . . $1,904,926,000 $4,391,319,000 New Orleans . 283,822,000 408,027,000 Galveston . . . 268,012,000 274,784,000 Boston and Charlestown . 216,152,000 443,483,000 Philadelphia . . 161,665,000 573,957,000 Baltimore . . . 149,369,000 418,006,000 San Francisco . 130,486,000 286,917,000 DETERMINATION OF FREIGHT RATES To the shipper the question of freight rates is a vital one in normal times. Under the abnormal conditions of the war-per- iod, delivery, not cost, was the first neces- sity to be considered, and as a result of this, coupled with the conversion of much merchant tonnage to war service, and the consequent scarcity of cargo space, rates rose to record heights until regulated by Government action. Cotton, for instance, crossed the Atlantic at a carrying cost of [9 Photograph by K.l Products of fields, factories, and mines reaching the port of New York for distribution to the four corners of the earth seventeen cents per pound, occupying less room and paying more for its passage in proportion than a steerage passenger did before the war. Fortunes are reported to have been made in some cases out of the single voyage of a vessel. An English estimate of the operation of twenty million gross tons of British ship- ping in 1916 places the gross earnings at considerably more than a billion and three-quarters dollars. A summary of the returns indicates the effect of Government regulation upon rates : Average . per Gross ton earnings 11, 000,000 tons at "Blue Book Rates" (fixed by the Government) . $45 $495,000,000 4,000,000 tons, partly under directed rates; i.e. care of sugar, wheat, meat, iron ore, etc . . 110.00 5,000,000 tons free; i.e., at current market rates 1 80 . 00 440,000,000 900,000,000 20,000,000 tons 10] $98.75 $1,835,000,000 Many factors enter into the determina- tion of rates beyond the question as to whether the supply of tonnage is greater or less than the volume of demand. The im- portance of this condition as an influence on rates is indicated by the fact that ex- perts estimate that so small a variation as two and one-half per cent, in the amount of tonnage necessary for the world's needs at a given time will result in a rise or a slump in freight, accordingly as the demand exceeds the supply, or the re- verse. In terms of shipping, however, a two and one-half per cent, variation in the world's merchant fleets means more than a million gross tons, the equivalent of hundreds of vessels. In determining ocean freight-rates the chief basic items of consideration include the interest on the cost of the ship, depre- ciation of ship, insurance charges, operat- ing expenses coal, supplies, wages, and maintenance of crew, etc. port charges, tonnage dues, and labor. While agreements between ocean lines tend to regulate competition and to play an important part in the fixing of rates, there is small probability of a point being reached where anything resembling an actual monopoly in ocean-carrying can be effected. The character of charter-traffic, in distinction from line-traffic, is an im- portant element in the situation. Compe- tition is unrestricted in charter- traffic, except in a few regions of lesser impor- tance, and the great volume of this tonnage available must always act as an offset to the operation of line-traffic on a more or less non-competitive basis. Despite many kinds of conference arrangements, compe- tition between " tramp" vessels and between "tramps" and the regular lines continues unabated. And competi- tion between rival ports and rival coun- tries is also to be reckoned with. The lim- it^ number of ocean lines makes the es- tablishment of working agreements com- paratively easy, a condition that does not apply in the case of the thousands 'upon thousands of "tramps" operating inde- pendently. There have, at various times, been agreements between groups of owners of "tramp" vessels, but these have not been of sufficient scope to have any material effect upon the general situation. In the case of the ocean lines, however, agreements, conferences, and pools have been successfully established and con- ducted to the end of substituting cooper- ative regulation for unrestricted competi- tion. Practically all the leading lines ply- ing to and from American ports operate under agreements of various kinds. Be- fore the war the German companies fig- ured prominently in these arrangements. Conferences constitute the organiza- tions through which the ocean lines con- Photograph by Edwin Levick, K. Y. The constant stream of traffic along the water-front of New York in Photograph by Edwin Levick, N. Y. Huge floats propelled by tugs, transporting to terminal warehouses in New York City, freight cars loaded with goods for foreign markets duct their pools, understandings, or agree- ments. While the proceedings are largely informal in some instances and mainly of a consultatory character, in others elabor- ate organizations are effected, with boards of officers, stated and special meetings, rules of procedure, and provisions for pen- alties. In some cases officials of the con- ference are empowered to fix freight rates, commissions, and rebates applicable to all members, and to have access to the books of any or all of the lines. Boards of arbi- trators are in some instances authorized to settle any disputes among members. COOPERATION IN SHIPPING Through pooling arrangements many ocean lines take steps to strengthen the cooperative system. Traffic pools and money pools are conducted for the pur- pose of assuring each member of a fair share of freight and passenger business, and an allotment of traffic may be pro- vided for. Some agreements go to the point of lumping the net receipts and di- viding them on an agreed proportional basis. The "deferred rebate" system was made illegal, so far as the United States is concerned, by the Shipping Act of Sep- tember, 1916. This system, used as a pro- tection against the competition of non- 12] conference lines, offered to shippers at the end of a specified period, a rebate of from five to ten per cent, of their payments for freight, on the stipulation that in the in- tervening period they had given their en- tire trade to the conference lines. Complaints against the monopolistic powers of the ocean lines operating under agreement have been made at times. Dominance over rates, slowness in settling claims, indifference in handling freight, refusal at times to publish classifications and rates, and the granting of special rates to favored shippers, are some of the mat- ters that have been brought to issue. The Shipping Act of September, 1916, how- ever, has prohibited many of the features complained of. In addition, the United States Shipping Board has supervisory powers over the entire administration of ocean conferences. Many advantages are claimed to have resulted from the conferences. Among them is the improved service effected. The cost of operation, it is contended, is re- duced, with the result that while the net earnings of the lines are increased, the shipper receives lower rates and greater efficiency of service. Stabilization of rates is another instance of the merits claimed as due to the cooperative working of the lines. Any marked general reduction in rates may be said automatically to stimulate shipments. A high level usually results in the holding back of large quantities of freight on which urgent delivery is not re- quired, and a sharp cut in rates is the signal for pushing forward this class of goods so that it can be laid down overseas at a satisfactory total cost. Charter-rates fluctuate much more free- ly than line-rates because of the much greater competitive element entering into the operation of "tramp" tonnage. There have been numerous instances, in fact, where charter-rates have changed many times in the course of a single day. MEANING OF COMMERCIAL TERMS The following commercial terms are most commonly used in connection with the shipments of goods to other countries : C. F., or C. and F. (Cost and Freight). The goods are furnished and the freight paid but no other expenses to place of delivery, as agreed, by the seller. The buyer assumes all risks while the goods are in transit. C.I.F. (Cost, Insurance, and Freight). The goods are furnished by the seller, who pays the freight and insurance to the point of delivery. All other risks while the goods are in transit are assumed by the buyer. F.O.B. Destination (Free on Board). All costs are paid and all risks assumed by the seller until the goods reach the place of de- livery as agreed. F.A.S. Steamer (Free Alongside). Goods are to be delivered by the seller alongside steamer on lighter, or on the re- ceiving pier of a steam- ship company, in proper condition. The buyer assumes all subsequent risks and expenses. Giant cranes swinging freight aboard a transatlantic liner i ne cargo ion, weigiit or measurement, was formerly the basis of ocean line freight rates; but the system is no longer univer- sal. Quotations on rates may be for the long ton (2,240 Ibs.), metric ton (2,204.62 Ibs.), the short ton (2,000 Ibs.), or the measurement ton (40 cubic feet) ; but spe- cial commodity rates are growing in use. These may be based on cubic feet, cubic meters, 100 pounds, bushels, barrels, or other specified quantities. (40 cubic feet = 2,240 Ibs; one cubic meter- 1,000 kilos). In case a rate is quoted "per ton, weight or measurement, ship's option," the line re- serves the right to charge on a weight basis if the weight of the shipment is in excess of its cubic measurement, or on a measure- ment basis if the cubic measurement is in excess of the weight. Frequent changes are made by lines from weight to measure- ment basis, and vice versa, this being done in many cases to equalize rates with those charged by other companies. In computing the measurement of pack- ages, the shipper should bear in mind that the steamship companies in most instances measure in a rectangular way. The cause of this is that it is not easy to stow irregu- lar shaped packages compactly, because of the difficulty of finding packages that will fit the vacant spaces. It then be- comes necessary, in order to prevent shifting of cargo, to utilize dunnage, or timber, for the un- filled spaces. One condition which operates in favor of those who ship goods abroad through the port of New York, although largely curtailed during the war period, is the free 113 Photograph Loading cargo for countries south of the Equator lighterage privilege extended to export freight in carload lots. By taking care to bill to New York "lighterage free," ship- pers avoid the payment of cartage charges from railroad to steamship pier, and ferri- age as well if the transfer has to be made from New York to New Jersey, or from New Jersey to New York. FREE LIGHTERAGE PRIVILEGE The "free lighterage" regulations at the port of New York are as follows: "On carload eastbound 'Lighterage Free' freight (except lumber) three free export lighter- age deliveries or one free domestic lighterage delivery will be made from any one car; any additional lighterage deliveries from the same car will be subject to a charge of three cents per 100 pounds with a minimum of $6 for each lighterage delivery, except that any remainder of freight from the same car may be delivered in one lot, at one time, at any one regular station of the railroad company within the "free light- erage" limits, subject to a charge of SI. [14 "When more than one lighterage delivery from any one car of lumber is made, the charge for each lighterage delivery, after one free delivery, shall be three cents per 100 pounds with a mini- mum of $6 in addition to the freight charges. "The free lighterage limits extend from the Battery to 135th Street on the North River (New York side), from Bergen Point, Shooters Island, or Clifton to Fort Lee (on the New Jersey side) ; on the East River from the Battery to Jerome Avenue Bridge (New York side), and from Astoria to 69th Street, Bay Ridge (on the Brooklyn side.) This territory takes in all the usual piers at which steamers load or discharge." Certain commodities are excepted from the "free lighterage" privilege, such as bulk freight, or those of an unusually bulky or heavy character. Freight rates given by the steamship companies are for packages of not more than two tons in weight, except in cases where special arrangement has been made. If the weight limit is exceeded the shipper must arrange to have a hoisting company load the goods or pay hoisting charges to the steamship company. THREE CLASSES OF TRANSPORTATION Transportation service for ocean freight falls into three chief classifications : 1. "Tramp" or chartered. This is given by vessels equipped to carry rough and bulky cargo to any destination, unless prevented by legal requirements or insufficient port facilities. "Tramps" may be chartered for single trips or stated periods, and are sometimes placed "on the berth," for whatever cargo may offer. They have a wide range of activity, being tied to no fixed routes. They are constructed with a view to economy and cargo capacity, and not for speed. Compared with the regular line service, they have the advantage of no overhead expense caused by the maintenance of permanent offices and dock facilities, and they also benefit by securing their cargoes chiefly through ship brok- ers, thus avoiding the cost of operating an elabor- ate freight soliciting organization. Their dis- advantages lie in the fact that they do not carry the better paying high-class cargo that the regular lines can handle in broken lots and which calls for speedy carriage. Nor have they the money- making opportunities offered by the carrying of mails, passengers, and express goods. Their pa- tronage is also more irregular than that of the other classes of cargo-carriers. 2. Regular lines, These give a fixed service to established points on schedule. Some carry freight only, others passengers as well, and still others passengers only. The freight-carriers are sometimes placed "on the berth" at low rates to obtain part cargoes, in order to avoid carrying ballast, from which, of course, no profit is derived. They are also in a position to compete with the "tramps" for the carriage of bulky goods. They are usually larger, speedier, and better equipped than the "tramps," and, unlike the latter, prac- tically all are fitted with engines, whereas, many "tramps" are dependent on their sailing power only. 3. Privately operated ships. These are oper- ated chiefly to carry goods for the business con- cerns which run them; but to fill out cargo or obtain a return consignment, they frequently take freight for other concerns. They include many specialized types of ships, such as colliers, fruiters, and tankers. Through freight-forwarders informa- tion may be obtained as to ocean freight rates, and the sailing dates of vessels; ar- rangements can be made for storage of freight after arrival; steamer bookings effected; deliveries of goods made; insur- ance can be secured; and shipments cleared through the Custom Houses. In many cases, freight-forwarders have con- nections at other American ports and in foreign cities. By this means they can ar- range for shipments with a view to the most economical and quickest route. OCEAN ROUTES While ocean routes are too numerous to permit anything like a detailed presen- tation in this booklet, the chief ones may be said to fall into a few divisions, which may be classified roughly, as follows : (A) From the north-eastern ports of the United States to the British Channel. This route con- nects the leading commercial nations of the globe, and over it passes not far from twenty per cent, of the total tonnage of the world. Skirting the United States seaboard to the Newfoundland Banks, it then curves across the Atlantic. Branching off at various points of this route, other lines touch ports of Europe from the Mediterranean to the Baltic, and ports of America from the Caribbean Sea to Canada. (B) From the eastern seaboard of the United States, and from southern and western Europe, through the Mediterranean and the Suez Canal to China, Japan, and the East Indies. (C) The South African route connecting At- lantic ports of America and Europe with the .southern, eastern, and western coasts of Africa, and with New Zealand and Australia. Sailing vessels also use this route for connections with the Orient and the East Indies, their inability to navigate the Red Sea barring the Suez Canal route to them. (D) The South American route, from North Atlantic to South American, east and west coast, ports. (E) The route around South America, connect- ing American and European Atlantic ports with the Pacific coast of the Americas. (Continued on page 16) 115 Training Recruits to Mar Respect for the flag is inculcated early in the recruit's career Apprentices receiving their uniforms Photographs by courtesy of The Rudder Manning the life-boats is one of the most essential features of the training of recruits New Merchant Marine "All-together" Apprentices working like veterans Scraping deck on a U. S. Shipping Board recruiting service training ship Photograph by Edwin Levick, N. Y. A freighter, shepherded by puffing tugs t proceeding to her dock at New York (F) The Gulf and Caribbean route, affording access to the ports of the United States Gulf Coast, Mexico, Central America, the north coast of South America, and the West Indies. (G) The Pacific route, connecting North Am- erica with Asia, over which an extensive trade with China, Japan, and the Philippines is carried on. (H) From the North American Pacific coast to New Zealand, Australia, and the South Sea islands. (I) The Panama Canal route, the development of the use of which promises to be rapid and extensive with the relief from the abnormal con- ditions created by the war. European trade with the west coast of North and South America, and America's Atlantic and Gulf trade with the Pacific coast and the Orient, can be expected to move to an increasing degree by way of Panama. PROBLEM OF PROFITABLE VOYAGES These are the principal ocean-carrying trade-routes; but they are only a few of the highways followed by the merchant 18] fleets of the world. The ramifications are almost endless; they shift as the trade demands of the foreign markets increase or lessen. To find freight that will make each voy- age profitable is the constant problem of the ship operator. Idle ships in port are costly, and costly, too, is the ship which is unable to obtain a cargo and is forced to make a return voyage in ballast, using fuel, supplies, and labor for which there will be no return in earnings. To obviate this, triangular voyages are made. With "tramp" vessels this practice is common, but it is carried out even by steamship lines operating over established routes. As an instance of the lengths to which it is some- times necessary to go to operate at a profit, a steel corporation, in order to put its service from New York to Vancouver on a paying basis, was obliged to sail its ves- sels from Vancouver to France before re- turning to New York. Four complete changes of cargo were required, the itin- erary being : From New York to Vancouver, with steel; Vancouver to the Gulf of California, with coal or lumber; Gulf of California to Dunkirk, France, with copper matte; Dunkirk to New York, with French chalk. SHIPPER'S PAPERS Agreement having been reached in re- gard to the ocean freight-rate on the goods to be transported, the employment of a series of commercial documents becomes necessary. These may be styled Ship- per's Papers. They constitute the record of the dealings between the carrier and the shipper, between the shipper and the Gov- ernment authorities, the consignees, and insurance concerns. A second series of documents used in connection with for- eign trade may be entitled Ship's Papers. These represent the dealings of the carrier with the Government, and in the opera- tion of its vessels. Export and Import Licenses. Although trie greut majority of restrictions on goods shipped to, and received from, other countries have been removed, the Government still requires the filing of license applications with the War Trade Board. Exports were first placed under regulations, so ,a after America's entry into the war, the object being: (1) to prevent materials from re.achir"- the enemy either directly or indirectly (i y to conserve a sufficient supply of commoM" >s . ,, meet domestic needs; and (3) to insure a reserve from which to fill the requirements of our Allies. Imports were made subject to restriction in the v fall of 1917. The method of regulation adopted has been an important factor in the conservation of cargo space. Shipping Permit. A form giving permission to the shipper or his agent to deliver the goods for shipment at the carrier's wharf on a specified date. Dock Receipt. Upon delivery of the goods a receipt is issued by the receiving clerk at the wharf. In it are recorded the name of the vessel on which the shipment is to be made, the destina- tion and consignee, and the distinguishing marks, weights, and measurements of the various pack- ages. Shipper's Manifest (or export declaration). The next step is the clearance of the goods at the Custom House. It is required by the Gov- ernment that the shipper, or his agent, file a manifest giving in detail the goods to be export- ed. The manifest must be sworn to, as it is from this source that the Government prepares its statistics of exports. The Collector of Customs retains the original and a duplicate is turned over to the carrier. Consular Invoice. This document is required when exports are consigned to Central and South American countries, Cuba, Mexico, and Portugal. The various countries have different forms which may be obtained and sworn to at the consulates, fees being charged for certifica- tion. The number of copies required varies from one to seven, the various countries' regula- tions in this respect differing. Particulars must be given of the shipment and its value, shipping charges, etc. Certificate of Origin. By a number of foreign countries, among which are Argentina, France (in the case of most goods). Italy, Japan, Nic- aragua, Paraguay, Spain, Turkey, and Uruguay, a certificate is required stating that the goods to be exported are products or manufactures of the United States. Where countries have two tariff schedules, this certificate is necessary to secure the minimum duties. Various fees are charged in connection with the execution, of certificates of origin. Non-Dumping Certificate. Some of the British Colonies Canada, South Africa, Australia, and New Zealand require a certification by the sb.ipper that there is no difference between his export prices and discounts and those granted ' on the same goods in the United States domestic markets; or, he can give a list of his domestic and export prices and discounts. By these means the Colonies seek to prevent the flooding of their markets with foreign goods at sharply cut prices, or prices below the cost of output. Exporter's Invoice. This is a detailed private invoice prepared by the shipper when the goods are ready for shipment. It describes the wares shipped by quantity, weight, measurement, and price, as well as giving the name of the vessel concerned, the destination of the goods and the distinguishing markings on the packages. It also [19 Loading cotton for export at one of our southern ports bears the signature of an official of the shipping concern. A number of copies are made of the invoice. If a bill of exchange, or documentary draft, is negotiated by the shipper, the bank will require two copies to be attached to the bill of lading. The foreign consignee should receive a copy, which he will use in clearing the goods through the customs on their arrival abroad. The shipper will need one copy for his files, and, if shipping to the seaboard from an inland point, he will require another for the use of his agent at the port of shipment. Statement of Charges. This is a document used on occasion, as supplementary to the exporter's invoice. In it may be listed separately the charges on rail and ocean freight, insurance, port services, etc. Memorandum Note. A list sometimes pre- pared for the benefit of the consignee, showing what is contained in each package, in contrast with the exporter's invoice, which indicates the package in which each article is contained. Ocean Bill of Lading. The most important of the shipper's papers. It is customarily drawn up by the shipper on forms which the carrier supplies, and which are signed by the latter after he has gotten the dock receipt and the shipper's mani- fest. Besides being the final receipt from the carrier, the ocean bill of lading constitutes a shipping contract between the carrier and shipper. It becomes a negotiable document and may be used by the shipper as the basis for a draft if it is drawn to his order. It is not the usual practice however, for the ocean bill of lading to be drawn in the consignee's name, unless he has a special 20] agreement with the shipper, or unless advance payment has been made or security arranged before shipment. The basis of financial settle- ment most commonly employed in foreign trade is by drafts, or bills of exchange, to which have been attached a shipper's invoice, insurance policy, and ocean bill of lading. A number of copies of the bill are required, varying according to the nature of the transaction. The banks, if settlement is to be made by draft, will require two or more negotiable copies and the possession of all the negotiable copies. Non-negotiable copies will also be needed by the shipper, the carrier, and the consignee for filing, and by foreign consuls to meet the provisions of law. Export Bill of Lading. This is used in cases where the exporter at an inland point wishes to bill his goods from point of shipment to foreign point of receipt, port or interior. By obtaining a through bill of lading from a railroad he obviates the necessity of securing a railway bill of lading to the export port and then an ocean bill of lading to the foreign port of receipt. The export bill of lading constitutes a triple contract, cover- ing: (1) Shipment by rail or water to port of export; (2) Shipment by sea: (3) Shipment from foreign port of entry to inland destination. Parcel Receipt. Issued by ocean carriers to expedite transportion of small packages, most commonly samples, although general merchan- dise is so shipped on occasions. The value, weight, and dimensions of the goods carried are restricted. Parcel shipments are designed to avoid the high rates that would have to be paid for small lots of goods under the minimum freight charge usually stipulated in ocean bills of lading, and under which nothing less than a ton rate or a specified amount would be accepted, no matter how small the consignment. Numerous shipping lines are now using these receipts. Charter Party. An agreement between the charterer and the vessel owner, or his agent, used when shipments are made in chartered vessels, or "tramps." There are two general kinds, one used in cases of a charter for a specified period, the other where the charter is for a single trip. Charter parties may cover many points, including capacity of vessel, methods of discharge and loading, demurrage, insurance, rate of com- pensation, ship-broker's commission and freight- brokerage, etc. The owner, where the charter is by trip, operates his vessel and remains in posses- sion of it. The rate of pay is fixed on the amount of freight carried, at a price per ton, bushel, quarter, 100 pounds, or other unit of cargo value. Where a time charter is taken, the ship is in the charterer's possession. The general custom is for the charterer to pay an agreed rate per dead- weight ton. He also supplies fuel and pays all port expenses, except those for provisions and crew. In the case of a time charter the rate of payment may be based on the net register ton- nage of the ship. SHIP'S PAPERS The principal ship's papers used by ocean carriers are: Ship's Manifest. A list of all consigned cargo, the destination of each item, its quantity, weight, distinguishing marks, and numbers. Before the vessel clears or enters a port a copy of the manifest must be filed with the Collector of the Port. It is used in connection with the shippers' Copyrighted by Und American cotton on lighters in the harbor of Barcelona, Spain [21 Photograph by Brown Bros., N. Y. Along the docks at Liverpool manifests as the basis of the Government's foreign trade statistics and also as a check on import duties. It is also necessary to file a copy at the foreign port of clearance or entry and other copies are carried for use on the ship. Bill of Health. This is issued by the port authorities, and certifies that no dangerous or contagious disease in an epidemic form exists in the port of sailing. Shipping Articles. An agreement between captain and crew as to the conditions under which the voyage is undertaken. A certified copy must be obtained before the vessel can clear for a foreign port. Crew List. In addition to the shipping articles a list of the crew, giving the name, description, birthplace, and residence of each member, must be deposited with the Collector of the Port before sailing and a certified copy secured for use on the voyage. Certificate of Admeasurement. Also known as Ship's Register. It gives a list of measurements of various parts of the vessel, by which the gross and net tonnage of the ship is arrived at. Inspection Certificate. Issued by the Govern- ment Inspection Service, and certifies that the regulations concerning officers, crew, and equip- ment have been complied with. Log-Book. A record of the ship's voyage, which must be kept by the master while the vessel is at sea. Clearance Certificate. This having been se- cured, the vessel is free to leave for a foreign port. MARINE INSURANCE Marine insurance is not only a protec- tion to the shipper and consignee, but also an economic factor in the price of goods by virtue of the fact that it eliminates the risk of loss to the consignor in case of non- delivery; and, further, it is necessary in negotiating credit upon the consignment. In addition to covering the loss of the ship and its cargo, marine insurance can by agreement include the freight rates. In the case of freight forwarded by rail the shipper's position is different. Railroads are liable for the loss of freight and dam- age to it while in their care, except in ex- traordinary circumstances. These excep- tions include damage, loss, or unreason- able delay due to "the Act of God, the public enemy, quarantine, the authority of law," or to strikes, riots, or such events; inherent defects in freight shipped ; act or default of shipper, owner, or other person entitled to make requests upon carriers, and a few other causes. But for all ordi- nary risks to which freight is exposed in rail transportation, the railroad is re- sponsible. With ocean carriers, however, the case is different. Both by law and by the con- tract provisions of their bills of lading they have a greatly limited liability. The Har- ter Act, passed by Congress in 1893, fixes the obligations of a steamship company in the United States. It is stated by this measure that: "If the owner of any vessel transporting mer- chandise or property to or from any port in the United States of America shall exercise due diligence to make the said vessel in all respects seaworthy and properly manned, equipped, and supplied, neither the vessel, her owner, or owners, agent, or charterers shall become or be held responsible for damage or loss resulting from faults or errors in navigation or in the manage- ment of said vessel, nor shall the vessel, her owner or owners, charterers, agent, or master be held liable for losses arising from damages of the sea or other navigable waters, acts of God, or public enemies, or the inherent defect, quality, or vice of the thing carried, or from insufficiency of package, or seizure under legal process, or for loss resulting from any act or omission of the shipper or owner of the goods, his agent or repre- sentative, or from saving or attempting to save, life or property at sea, or from any deviation in rendering such service." The conditions upon which carriers are liable under the Harter Act, in addition to making the vessel seaworthy, properly manned, provisioned, and outfitted, are "negligence, fauk or failure in proper loading, stowage, custody, care or proper delivery." While the agreements specified in ocean bills of lading are not all couched in the same terms, they free the carriers from liability for losses due to the principal haz- ards of navigation. By special arrangement shippers can have the insurance apply from time of re- ceipt of goods at the vessel and hold in force until they have been discharged at destination or received by the consignee. By the ordinary policy the risk is covered only when the goods are actually on the vessel. If it is not specifically so stated all goods are shipped " under deck." If shipment is made "on deck," the insurance applica- tion must so specify. And in the case of freight carried "on deck" the insurance is free of claim for injury due to the ele- ments, except in case of total loss. s IBR*^. IflfMI mm*. I 1. Photograph by Edwin Levick, N. V, The picturesque port of Havre, France [23 All damage or loss of merchandise is not covered by marine insurance. Chafing or ordinary wear and tear of cargo practically certain in a sea voyage are not included in "perils of the sea." What is provided against is unusual occurrence, such as shifting of cargo caused by stress of weather, damage by sea water, and such other casualties as may be covered by agree- ment in each individual case. Loss from theft or pilferage is covered in the ordinary policy and must be arranged for especially. VARIOUS FORMS OF INSURANCE Besides underwriting associations such as Lloyd's, there are marine insurance companies, self-insurance plans, and (a creation of the war) Government marine insurance plans. In the Corporation of Lloyd's, which has had headquarters at London since the middle of the seven- teenth century, there is represented the main center of marine insurance through- out the world. It was not incorporated until 1871. No marine underwriting is undertaken by Lloyd's as an association. It is an exchange in which a group of un- derwriters each conducts business inde- pendently. Shipping news is also col- lected by Lloyd's. Many regularly incorporated insurance companies also insure marine risks, espe- cially in this country. Of recent years, however, there has been a growing tendency for steamship com- panies to conduct self -insurance plans. In some cases passengers' baggage, property, and cargoes as well, are insured in this way ; but the insurance of vessel property is most common. In Great Britain vessel owners, to a large extent, secure marine insurance through mutual associations of shipowners or clubs. Committees make assessments in proportion to the tonnage insured by the various members. VARIOUS KINDS OF LOSSES Protection may be sought through ma- rine insurance against various kinds of losses or liabilities. The "total loss" of the vessel, its freight, cargo, profits, or other insurable interest may be safe- guarded against. Total destruction or damage to such an extent that the prop- erty is no longer of any practical value to the insured is termed an "actual total 1 w., .|K. ^^piBBSfTJl ,.., trv^fx; -:* ci rlsi^B^L Copyrighted by Publishers' Photo Service 24] The busy harbor of Genoa loss." A "constructive total loss*' is one in which the property, while only slightly damaged, is nevertheless of no value to its owner. It may be necessary, for instance, to abandon a ship although it has not been badly injured. By giving notice of abandonment in that case the in- sured 's contract enables him to obtain the full amount of insurance on a "construc- tive total loss." A" partial loss " is capable of settlement in accordance with either "particular av- erage" or "general average" rules. The "general average" is based on the principle that, in case of a deliberate vol- untary sacrifice of a vessel, its cargo, or other property for the common welfare and safety, the whole loss should not be borne by the owners of the properties sacrificed, but should be divided on a fair proportional basis among all interests ben- efiting by the sacrifice. Subsequent to the establishment of the act of voluntary sacrifice it is the duty of the owners of the vessel to appoint aver- age adjusters, who draw up what is called a general average statement. This lists the disbursements made and the sacrifices in- curred and distributes over the different interests involved (i.e., freight, cargo, and ship) the contribution due from each in- terest. The principle of general average is thus explained by William Gow, an authority on marine insurance: "A general average loss is a loss caused by or directly consequential on a general average act. It includes a general average expenditure as well as a general average sacrifice. "There is a general average act where any ex- traordinary sacrifice or expenditure is voluntarily and reasonably made or incurred in time of peril for the purpose of preserving the property im- perilled in the common adventure. "When there is a general average loss, the party on whom it falls is entitled, subject to the conditions imposed by maritime law, to a rate- able contribution from other parties interested and such a contribution is called a general aver- age contribution." In settlement on the basis of "particu- lar average" the loss falls wholly on the owners of the property damaged or its in- surers. This applies in cases where the damage to the insured property has been by accident or not through destruction in order to save other property. Payment of salvage, the legal reward given those who save life and property at sea, is another cause of "partial loss." A vessel, for instance, towing to port another which it has found in distress, is entitled to claim salvage and the owner or insurer of vessel and cargo benefiting must pay the amount legally due. TYPES OF POLICIES Types of marine insurance policies are very numerous, among the principal being "cargo," "freight," "vessel," "vessel and freight," "blanket," "cotton," "coal," "war risk," etc., the titles signifying the property protected. While most of the same kinds of policies are akin in general form and principal features, there is no uniform type. Either "valued" or "open" policies may be secured. The "valued" type gives the agreed value of the property af- fected. In the case of the "open" policy, no value is stated and it must be ascer- tained in the event of loss. "Floating" and "named" policies are also used. The "floating" policy specifies value of property insured, limits of voyage, and class or type of vessel to be employed. No particular vessel is named, however, the procedure being followed to enable the shipper to secure insurance on his goods before he has learned the name of the ves- sel upon which his goods will be shipped. It also provides him with protection in the event of a loss before he has made the in- [25 The port of Buenos Aires surance specific. When the vessel's iden- tity is known, the name is "declared" to the underwriter and indorsed on the pol- icy, which then becomes a "named" in- stead of a "floating" policy. "Voyage" policies, covering a single trip of the ves- sel, and "time" policies, for a specified period, are also employed. The use of marine insurance certifi- cates is frequent. These are issued against policies and do away with the need of issu- ing copies of the policy to be used in con- nection with various commercial formali- ties. After obtaining insurance up to a specified total sum, for instance, an ex- porter can protect his bankers, consignees, exchange brokers, or creditors, by issuing certificates duly countersigned and serv- ing the purposes of the actual policy. PRINCIPLE OF ABANDONMENT An important principle for the importer to understand is that of abandonment as permitted under the customs regulations. It frequently happens that cargo reaches port in a condition that renders it totally or practically worthless for the importer's purposes. This may be due to deteriora- tion during the voyage (as in the case of perishable goods), to injury, or to other causes. In such cases the importer by taking the proper steps may give up the goods and so avoid the further loss that would be occasioned by payment of duty. TKe sections of the customs regulations relating to abandonment are as follows: "ART. 602 Time Quantity. An importer may within ten days after the date of entry as de- fined in article 233 abandon all or any portion of merchandise included in any invoice, and may be relieved from the payment of duty on the por- tion so abandoned, provided such portion shall amount to 10 per cent, or more of the total value or quantity of the invoice on which entry is made. "The ten days include Sundays and holidays. "The notice of such abandonment must be filed with the collector in writing. "ART. 603 Delivery and Examination. Mer- chandise to be abandoned must be deliverable, and the importer must deliver it at such place within the port of arrival as the collector may direct. If the importer shall fail to make delivery as directed, the collector will transfer such mer- chandise at the expense of the importer. "The collector shall cause the abandoned mer- chandise to be examined and identified with that described in the invoice used in making the entry. "ART. 604. The collector shall sell the aban- doned merchandise for the account of the United States and after paying the expense of the sale, deposit and account for the net proceeds under 'Miscellaneous receipts from customs.' No part of the proceeds shall be returned to the im- porter. If the merchandise is entirely worthless, or the expense of the sale would probably exceed the proceeds, the collector will immediately de- stroy the same." THE "DRAW-BACK" SYSTEM The refund of duties under the "draw- back" system offers a means of large sav- ing in foreign trade. The Government al- lows exporters, in cases where imported material is used in the manufacture of do- mestic merchandise, a "drawback," con- sisting of the import duty paid on the same, less one per cent. Medicinal and toilet preparations, including perfumery, made in the United States with the use of domestic tax-paid alcohol, are also subject to drawback, the amount being equiva- lent to the tax on the alcohol used. It is required as a prerequisite to the al- lowance of the "drawback" that the ma- terial must pass through some process of manufacture, and a claim must be filed with the collector of customs at the port of exportation before the goods are loaded on the vessel, or cross the border into Mex- ico or Canada. The claim must be com- pleted within three years from the date of exportation by filing the affidavits and certificates required; otherwise, it will be treated as abandoned. Before drawback can be claimed application must be made to the Treasury Department at Washing- ton. It is not necessary that manufacturers, in order to take advantage of the "draw- back" provision, should have imported the material used by them. Nor is it re- quired that the export shipments should be made in their name, or for their ac- count. Documents used in connection with the entering of imports through the Custom House are too numerous and too compli- cated to be detailed here. Several hun- dred different kinds of blank forms are employed. Custom House brokers or specialists are engaged by most importers to see that the formalities required by the Government are properly complied with. The most important documents needed are the ocean bill of lading, the consular Copyrighted by E. M. Ne The harbor of Valparaiso, Chile invoice, if value of the goods imported ex- ceeds $100, or plain invoice if the value is $100 or less. The whole subject of duties and ap- praisement is likewise too complex and voluminous to make any attempt at even a general description possible here; but specific information on this subject can be obtained through the Foreign Trade Bureau of the Guaranty Trust Company of New York. One point that should be noted, however, is that in case a consignee has no invoice and the value of the goods to be imported is less than $100, he may enter his goods under a so-called appraise- ment. The United States appraiser will then establish the value and assess duty accordingly. In order to import duty-free American goods that have been exported and are shipped back to the United States, it is necessary that a "declaration" should be made at the office of the American con- sulate in the district from which the goods are shipped, or at the port of shipment. This declaration must state that the goods have not been advanced in value, or im- proved in condition by any process of manufacture, or other means, while abroad. A bond may be given for the pro- duction of the declaration if it is imprac- ticable to produce it at the time of entry. If the value of the merchandise does not exceed $100 the declaration maybe waived by the United States customs officials. In addition to the declaration, a certi- ficate must be obtained from the collector of the port from which the goods were shipped originally. This certificate must state that the goods are the same and have not been advanced in value or altered in any Way since leaving the United States. The certificate will be issued only when the collector's record of Custom House clearances shows the actual exportation of the goods in the first place, as claimed. In case the certificate has not been obtained, a bond may be given for its production in a sum equal to what the duties would be if the merchandise were foreign. BANKING FACILITIES Banking institutions hold a prominent part in the development of foreign trade, for it is chiefly through this medium that the financing of exports and imports is ef- fected. The growing use of acceptances is an important factor in the extension of in- ternational commerce. Payment for the goods purchased may be arranged in a number of ways. The purchaser may remit with the or- der. He may open a bank credit in favor of the seller, or the seller may draw a draft on the purchaser, or ship the goods on open account and await remittance. Other methods are also available. Where remittance is made with the or- der the advantage is with the shipper. He receives payment for his goods in advance and the purchaser must wait, perhaps months, before receiving his order, and may have to hold the material for a con- siderable period, pending sale. On the other hand, if the buyer has surplus cash on hand he is often in a position to secure the goods he needs at special prices. In the case of the seller shipping on open account and awaiting remittance the bur- den of the financing falls upon him, much as it does upon the buyer when the latter remits with order. Where the shipper draws upon the pur- chaser the procedure is, briefly, as follows : A draft payable to his own order is drawn by the seller on the buyer. To this are attached the necessary documents in connection with the sale and shipment of the goods, bills of lading, marine insur- ance policy, invoices, etc. The seller in- dorses the draft, thus guaranteeing its Copyrighted by E. M. Newma Shanghai, overlooking the Soochow River payment, and it can be sold or discounted in New York City through an agent or correspondent of a bank doing business in the locality in which the purchaser carries on his business. At the expiration of the period specified in the draft the purchaser pays the amount due and the transaction is closed. The acceptance plan, however, has a number of advantages over the system whereby the seller draws direct on the buyer. There are two main methods in connection with the use of acceptances in trade : 1. Establishment of commercial credits author- izing the bank giving them to accept and negoti- ate drafts made upon it by the seller. 2. Furnishing by the purchaser to the seller of the name of the bank abroad upon which he may draw. Domestic bankers' acceptances, as cre- ated by the first method, are regarded as most desirable paper. The importer's bank provides the seller with reimburse- ment by guaranteeing acceptance and payment of drafts drawn by him on his bank. The accepting bank forwards the documents covering the merchandise to the one opening the credit. The bills ac- cepted have a ready market. What are known as foreign exchange bills or bankers' bills are created by the second method. They have the necessary bills of lading, invoices, etc., attached to them and are drawn in the currency of the importing country. After being purchased from the drawer at current exchange rates they are forwarded by the purchasing bank for acceptance to the bank desig- nated. A bank acceptance may be defined as an extension of the bank's credit to a cus- tomer, wherein the bank, for a considera- tion, permits the customer to avail himself of this privilege. Bank acceptances offer distinct advan- tages both to business men and the banks through which they deal. [29 Through the use of acceptances, trust companies and banks can finance business dealings of their customers conveniently. ADVANTAGES OF ACCEPTANCES Acceptances of well known financial in- stitutions will be increasingly sought as short term investments because of the ready market for them. They furnish an advantageous opportunity for the use of surplus banking funds. To those engaging in foreign trade marked advantages are offered. The dif- ficulty experienced by exporters in giving credit terms as favorable as those given foreign buyers by competitors abroad makes a case in point. The foreign com- merce of the United States has been ham- pered by the custom of many American exporters to require payment in cash at New York against documents. Through the use of bank acceptances this may be obviated. Credit may be established by the American exporter by drawing at sixty or ninety days on a New York ac- cepting trust company or bank, and the acceptance can be discounted at an agreed rate. The exporter also gains the advantage of receiving immediate payment for his goods, and his capital, instead of being tied up in credits, is released for new business. The difference between trade accept- ances and bankers' acceptances is as fol- lows: A trade acceptance results from a transaction between buyer and seller; a banker's acceptances from the granting of credit by a banker. The buyer accepts the draft in the case of the trade accept- ance, the bank in the case of the bank ac- ceptance. The desirability of drafts drawn on the foreign buyer direct is not of the same grade as that of bank acceptances. In order to secure his goods the buyer must obtain the essential documents connected with the sale and shipment. They must therefore be released to him when he accepts the draft and the security is there- by removed from the control of the holder. The risk, in consequence, devolves upon the names of the maker and acceptor. In the case of a foreign acceptor other than a bank the risk is regarded as too indefinite to make the paper a desirable purchase. The bank acceptance is made a security of the highest class by the standing and credit of the accepting bank. As the re- sponsibility lies first with the accepting bank there is no necessity for close inves- tigation of the drawers or indorsers. The other parties to the transaction are sec- ondary if the bank's credit is satisfactory. Copyrighted by K. M. New American goods en route to their destination in China 30] Index PAGE Abandonment, Principle of 26-27 Customs regulations Art. 602 Time Quantity, Art. 603 Delivery and Examination, (26), Art. 604 (27). Acceptances, Advantages of 30 Banking Facilities 28-30 Commercial Terms, Meaning of 13-14 C. F., or C and F. (Cost and Freight), C. I. F. (Cost, Insurance, and Freight), F.O.B. Destination (Free on Board), F.A.S. Steamer (Free Alongside). The "Draw-Back" System 27-28 Foreign Trade, Growth of 9 Free Lighterage Privilege 14-15 Freight Rates, Determination of 9-12 Insurance, Marine 22-24 Insurance, Various Forms of 24 Losses, Various Kinds of 24-25 Ocean Routes 15-18 (A) From the north-eastern ports of the United States to the British Channel, (B) From the eastern seaboard of the United States, (C) The South African route, (D) The South American route, (E) The route around South America, (15) (F) The Gulf and Caribbean route, (G) The Pacific route, (H) From the North American Pacific, (I) The Panama Canal Route, (18) Our Present Position Policies, Types of PAGE 7-8 25-26 Profitable Voyages, Problems of 18-19 Shipper's papers 19-21 Export and Import Licenses, Shipping Permit, Dock Receipt, Shipper's Man- ifest (or export declaration), Consular Invoice, Certificate of Origin, Non- Dumping Certificate, Exporter's In- voice (19), Statement of Charges, Memorandum Note, Ocean Bill of Lading, Export Bill of Lading, Parcel Receipt (20), Charter Party (21). Shipping 7 Shipping, Cooperation in 12-13 Shipping, Great Increase in our 9 Ship's Papers 21-22 Ship's Manifest (21), Bill of Health. Shipping Articles, Crew List, Certifi- cate of Admeasurement, Inspection Certificate, Log-Book, Clearance Cer- tificate (22). Tonnage Terms Defined 8-9 Transportation, Three classes of 15 (1) "Tramp" or chartered, (2) Regular lines, (3) Privately operated ships. OVERDUE. Stockton, Calif MT. IAN 71 1908 YD 05959 .'S n E G UNIVERSITY OF CALIFORNIA LIBRARY