^ F 2850 G •C6 J 91 9 :r- >;■ -X ■-•^-^ ARBITRATION FOR DISPUTES IN TRADE BETWEEN THE UNITED STATES AND THE ARGENTINE REPUBLIC CHAMBER OF COMMERCE ^"^ of the UNITED STATES o^ A yr^ ♦T' t <" "?^ SEPTEMBER, 1919 'Oft Library : : 030 Bancroft Library 16 ^^?0 Unfvorjity of California WITHnp\WN /3r/j Facilities FOR Arbitration of Disputes IN International Trade Arbitration as a method of settling disputes arising in trad^ has long been in vogue, under the auspices especially of commercial organizations. Friendly mediation on the part of men versed in the merchandise and the trade in question, and so selected as to guarantee their impartiality, has in recent years been discussed at international con- gresses of chambers of commerce as a means which certainly will be adopted for the promotion of good relations in international commerce. The Pan-American Financial Conference, which was held at Washington in May, 191 5, afforded an opportunity for representatives of the Bolsa de Com- ercio of Buenos Aires and the Chamber of Com- merce of the United States to consider concretely the possibility of a plan through which these two organi- zations, each representative of the commercial inter- ests of its country in a national sense, might at once encourage arbitration and make it readilv available for all persons engaged in trade between the two countries. The initiative in placing the subject be- fore the two organizations was taken by the Argen- tine Committee of the Conference. Discussion of the subject brought out so many points of mutual advantage in such a plan and so manv reasons to believe it would prove in every wav feasible that conferences were held during the fol- lowing month and the principles upon which there was entire accord were embodied in documents which have since had the attention of both organiza- tions. The plan as formally put into effect on April lo, 1916, is now printed for the information of all busi- ness men of the United States who have transactions with business men in Argentina. There are likewise printed in this pamphlet the names of the gentlemen who have consented to serve in Argentina and in the United States, upon the Committees of Arbitration and the Official Lists of Abritrators contemplated in the agreement. Creation of facilities of which business men can avail themselves, if they see fit, is the purpose of the plan. When the parties to a contract have, however, undertaken to submit to arbitration any controversy that may arise they will be expected to keep their agreement and to this end they will be subject to such moral influence as their organizations may be able to exert. In other words, the plan rests wholly upon the voluntary assent of the persons engaged in each par- ticular transaction between the two countries and upon the influence the commercial organizations of the two countries can exert upon any of their mem- bers who heedlessly disregard an undertaking to arbitrate. Such a degree of flexibility has been used in the plan that when a dispute arises the parties will be wholly free to choose such arbitrators as they please; they will need to have recourse to the official lists of arbitrators pnly when they cannot otherwise agree to whom they should submit their differences. COMMITTEE ON ARBITRATION in nil-; CHAMBER OF COMMERCE OF THE UNITED STATES UNITED STATES SECTION R. GooDWYN Rhett, Chair))ian, Charleston Cmaklks L. Bernheimer, New York City John J. Arnold, Chicago W. S. KiES, New York City Owen D. Young, New York City ARGENTINE SECTION Joiix n. Fahey, Boston Enrique Gil, New York City John G. White, New York City John E. Zimmerman. Philadelphia In accordance 'wilh Article 1'! of the A(:rce- ment.for which see page ii, the first five members of the Committee arc appointees of the Chamber of CommcriC of the United States and the last four arc appointees of the Chamber of Com- merce of Buenos Aires. COMMITTEE ON ARBITRATION OF THE CHAMBER OF COMMERCE OF BUENOS AIRES ARGENTINE SECTION GuiLLERMO White, Chairman, Buenos Aires CarIvOS T. Becu, Buenos Aires Juan Chapar, Buenos Aires Juan V. Mignaquy, Buenos Aires Domingo Salaberry, Buenos Aires UNITED STATES SECTION Luis E. Zuberbuhler, Buenos Aires Frederick C. Cook, Buenos Aires Hanaford E. Finney, Buenos Aires Chalmers T. Pryor, Buenos Aires. In accordance zvith Article VI of the Agree- ment, for which see page ii, the first five members of the Committee are appointees of the Chamber of Commerce of Buenos Aires and the last four are appointees of the Chamber of Commerce of the United States. OFFICIAL LIST OF ARBITRATORS OF THE CHAMBER OF COMMERCE OF THE UNITED STATES (Sc« Article VIII of th« Agreement, page 13) UNITED STATES SECTION I"..\RL D. Barst, New York Henky S. Dennisox, Boston P. T. Dodge, New York A. Barton Hephurn, New York Alba B. Johnson. Fliiladelpliia J. L. Kaul, Birmingham J. Franklin McElw.mn, Boston William Kellowks Morgan, New York E. H. OiTtRBRiPGE, New York Lewis Pikrson, Brooklyn F. F. Prentiss, Cleveland R. B. Price. New York Jacob H. Scuhk. New York John A. Toit'inc, New York Theoiiore N. Vail. New York W. P. Wilson, Philatieiphia W. D. Baldwin. New York Kdwin p. Brown, Boston William Butterworth, Moline E. M. Herr. F^ast Pittsburgh H. C. Lewis. New York Henry R. Towne. New York George M. Reynolds, Chicago Frank G. Ryan. Detroit S. Davies Warkielt), Baltimore Frank O. Wetmori:, Chicago J. H. Wheklwriciit, Baltimore Crawford H. Ellis, Boston John Crosby. Minneapolis Emory W. Clark. Detroit OFFICIAL LIST OF ARBITRATORS OF THE CHAMBER OF COMMERCE OF THE UNITED STATES (See Article VIII of the Agreement, page 13) ARGENTINE SECTION John Barrett, Washington Henry W. Boyd, Chicago Albert E. Cook, Denver Lorenzo Daniels, New York John L. Denton, New York Gerald F. Earle, New York F. Abbott Goodhue, Boston Edward C. Hoyt, New York William McKissock, Boston George E. Marcy, Chicago Lloyd B. Sanderson, New York Charles H. Sherrill, New York F. A. VandErlip, New York Julius H. Cohen, New York William Nelson Cromwell, New York W. A. OuDiN, Schenectady A. C. Pearson, New York George H. Richards, New York Welding Ring, New York Elihu Root, New York C. H. Sabin, New York Henry W. Taft, New York W. A. Shakman, New York Edmond Weil, New York Theodore F. Whitmarsh, New York Henry Howard, Boston M. C. Parsons, New York W. H. Douglas, New York C. B. McElhaney, New York L. N. DantzlER, Gu]fport OFFICIAL LIST OF ARBITRATORS OF THE CHAMBER OF COMMERCE OF BUENOS AIRES (See Article VIII of the Agreement, page 13) ARGENTINE SECTION RlCARDO C. Aldao Amadko Beretervide Caru)s Casares Antonio M. Delkino Tom AS Drysdale Antonio Larraechea Emilio Lernoud Miguel Monserrat EfCENIO C. N'oE Enricji-e Gigy O'Farrell Sam TEL Hale Pearson Santiago Pinasco Jose Gregorio Zuherbuiiler Pedro Christophersen ENRiguE Uriburu Santiago Brian Vicente Sanchez Carlos D. Scott Domingo Noceti Artl'ro R. Bullrich Hnkioue Santamarina Adoli-o Luro Leonardo Pereyra Iraola Carlos Agote Pedro Lacau Manuel F. Fernandez Antonio Pinefo Luis Lamos Bautista Sauberan Jorge M. Mendez Enrique P. Ortega Felix Astoul Felipe D. Allardice David Costaguta Federico Graeff Juan Oscamou Fernando Marti Pedro L. Moss Carlos Alfredo Tornquist OFFICIAL LIST OF ARBITRATORS OF THE CHAMBER OF COMMERCE OF BUENOS AIRES (See Article VIII of the Agreement, page 13) UNITED STATES SECTION Stanley Allchin Leopold Buhler M. Drew Carrell A. J. ElCHLER Charles Harper C. M. Lancaster C. D. MiDDLEBROOK M. J. PiLANT J. J. Pratt W. A. Reece D. B. Richardson George H. Weyland James A. Wheatley Enrique Wulfe Luis E. Young WiLUs E. Baker L. R. Babbitt J. L. Denton Otto Ebersen M. H. Hammond H. C. Mitchell R. E. Paine W. L Smith J. R. Stanford E. J. Sullivan W. T. S. Thackara L. Van Bokkelen Ross White C. W. WhittemorE Frank Ahearn A. A. Anewalt G. H. Corlette C. J. Hopkins A. B. Howard W. C. Howe G. A. Kuhirt W. B. MacDavid C. D. Mac Donald A. J. Simmons H. R. Storer William A. Wheeler James H. Williams Doctor H. Hersfeld John C. Zimmerman G. W. Chandler David Scott Enrique WolselEy An Agreement Between the Chamber of Commerce of Biie- P''ea'"'>!e nos Aires and the Chamber of Commerce of the United Sta-tes of America z^'hereby these or- ganicatio)is, seeking to inspire and maintain confidence in the busi)iess relations betzveer, citizens or residents of their respectiz'c coun- tries, proz'ide a system of arbitration for settle- ment of commercial disputes in an impartial, inexpensive, and expeditious manner. The two chaml)ers will urg-e that in ah con- tracts between merchants of the Argentine Re- pubh'c and the United States of America there should be inserted a standard clause to the ef- fect that in the event of controversy concern- ing interpretation, fulfillment, or performance of the contract such controversy shall be sub- mitted to arbitration under rules agreed upon between the Chamber of Commerce of Buenos Aires and the Chamber of Commerce of the United States of America. Advocacy of Arbitra- tion II The form of the standard clause mentioned in Article I should be as follows: "All dis- puted questions which may occasion contro- Standard Clause git|g Agrggmgttl Short Form Code for Cable Place of Arbitration Representa- tives of Each Side versy relating to this contract shall be submit- ted to arbitration under the rules adopted joint- ly by the Chamber of Commerce of Buenos Aires and the Chamber of Commerce of the United States of America. The inclusion in any contract of the words "Clause A A A" shall be equivalent to the total transcription of the foregoing uniform clause. AAA means "Argentine American Arbitration." Ill If a contract is negotiated by cable the par- ties may use the word "Arbaires" to indicate an agreement to arbitrate differences in accord- ance with the adove standard clause, the arbitration to occur in Buenos Aires, and the word "Arbanyork" to indicate an agreement so to arbitrate, the arbitration to occur in the city of New York. IV In providing for arbitration of differences the parties must always fix in their contract the place where the arbitration is to occur, but if the parties do not so designate a place the ar- bitration shall occur in the country in wliich the goods are to be delivered to the purchaser. The parties shall likewise appoint some one in their respective countries to represent them 10 gll|p Agrrrtnrnt in the arbitration proceedings. Shoukl either of the parties fail to name such representative, his appointment shall be made in conformity with the rules incorporated in this agreement. If the parties have not agreed upon arbitra- pa[4"e8 to tors within 30 days after either party to a con- f*ator« ^'^^^' tract has given notice of his desire for arbitra- tion, the committee on arbitration of the Cham- ber of Commerce of Buenos Aires, if the arbi- tration is to occur in the Argentine Republic, or the committee on arbitration of the Cham- ber of Commerce of the United States, if the arbitration is to occur in the United States, shall have authority, acting in accordance with this agreement and the rules of arbitration, to select three impartial persons, who may pro- ceed in the arbitration with the same force and effect as if they had been agreed upon by the parties. VI Each of the chambers undertakes to create committees on Arbitra- immediately a committee on arbitration, to be *'°" composed of nine persons serving for stated periods. Four of the members of the committee on arbitration of the Chamber of Commerce of Buenos Aires shall be nominated by the Cham- ber of Commerce of the United States, subject 11 Cgtyg Agrggtttpnl Quorum Powers of Arbitration Committees to the approval of the Chamber of Commerce of Buenos Aires, and five of the members of said committee shall be nominated by the Chamber of Commerce of Buenos Aires, sub- ject to the approval of the Chamber of Com- merce of the United States, one of the latter group to be designated by the Chamber of Commerce of Buenos Aires as chairman of the committee. The committee on arbitration of the Chamber of Commerce of the United States, and its chairman, shall be nominated, approved, and designated in a reciprocal man- ner. Three of the members of the Committee on arbitration shall constitute a quorum, pro- vided there is among the number present a representative of each chamber. The committee on arbitration of each cham- ber shall have general powers of supervision and administration in connection with arbitra- tions which occur in its country under this agreement, and shall have the duty to advance in every way in its power the principle of arbi- tration for the amicable settlement of commer- cial disputes. VII steps to In- "When a dispute shall arise over a contract augurate Ar- bitration containing the clause suggested in Articles I and II of this agreement, either of the dis- 12 CTi^p Aqrrrntfnt putanls may bring his desire tor arbitration to the attention of the other party and of the com- mittee on arbitration of the country in which the arbitration w-iill occur according to the terms of the contract, or according to Article IV of this agreement. The committee on arbi- tration shall thereupon notify the other party to the dispute and shall proceed with the case according to this agreement and the rules of arbitration. \'11I Each of the chambers undertakes to main- otriciai Lists of Arbltra- tarn an official list of arbitrators on which there tors shall be not less than 60 names of men. not necessarily members of the respective chambers of commerce, who have exceptional qualifica- tions and standing, and who represent as many different kinds of business as possible. On the official list of arbitrators of the Chamber of Ar-tKntin* Commerce of Duenos Aires 30 names shall be nominated by the Chamber of Commerce of the United States, subject to the approval of the Chamber of Commerce of Rueni^s Aires, and 30 names shall l)e nominated by the Cham- ber of Commerce of Buenos Aires, subject to the approval of the Chamber of Commerce of the United States. The former group of 30 names shall be known as the United States section of the official list of arbitrators of the 13 gr^g AgrggtttPitt United States List Use of Offi- cial Lists Disagree- ment over Tiiird Arbi- trator Chamber of Commerce of Buenos Aires, and the latter group of 30 names shall be known as the Argentine section of the official list of arbitrators of the Chamber of Commerce of Buenos Aires. The official list of arbitrators of the Chamber of Commerce of the United States and the designation of its two sections shall be ascertained in a corresponding man- ner. The number of names on the official lists may from time to time be increased or changed, the changes in the offidal lists to be made in the same manner as the lists were originally created. IX When the parties to a controversy have not otherwise chosen arbitrators they shall make selection from the official list of the country in which the arbitration is to occur. In the event that each party has chosen an arbitrator from his national group, and the parties can not agree upon a third arbitrator, the third arbitrator is to be selected by the chairman of the committee on arbitration of the country in question, who shall proceed by taking from each section of the official list of his chamber of commerce the names of the three persons who, by their business experience, are best able, in his opinion, to render impartial judgment, and by ascertaining an order of preference 14 alip Anrppmrnt among tliese six names by drawing lots. The man those name is first drawn shall be accept- ed as third arbitrator if he is able to serve; otherwise, the man whose name is drawn second shall be accepted, and so on. X The two chambers hereby agree that each support*of" will enforce to the full extent of its influence the awards made as the result of this system of arbitration, each giving full faith and credit to all awards which are made in accordance with this system and which are officially com- municated to it. Upon being so informed of an award with which a resident of its country has not complied, the chamber in question shall bring the award to the attention of the person concerned. If he persists in his failure to Refusal to ' Comply comply with the award, the chamber shall ^'*^ Award prefer a complaint against him to any chamber of commerce or association of which he is a member, and shall press its charges to the full extent of its power. XI The two chambers undertake to publish Bufiet'in'^of quarterly, or more frequently, if advisable, oecisi^ons"" a bulletin in which will be given a resume of the decisions which have been rendered in arbitrations, a list of the awards made, and the results of each awird. This Inilletin shall IS ®llp Agrprmrnt contain the firm name of any party refusing to comply with an award, together with a statement of the reasons, if any, given by him for his refusal. XII Disposal of Tf a controversy which is submitted to arbi- or Season- trutiou iuvolves merchandise, the committee on al Merchan- , . 11 hi dise arbitration which will have supervision of the case may, after communication with the par- ties, sell the merchandise or take such action as may, in their judgment, be advisable to avoid increased loss. The proceeds of such sales shall be depi^sited in bank to await the award of arbitrators. XIII Rules of The several provisions of this agrement Procedur* _ _ "■ shall be gi\cn effect in accordance with regula- tions formulated by the two chambers and ap- proved by each of them. These regulations shall be kiK^wn as the rules of arbitration, and shall contain, among other things, suitable provisions for taking testimony in writing be- tween the parties, for hearing the parties either orally or in writing, or both, as may be most convenient, and for payment of expenses of arbitration and fees of the arbitrators. XIV Nothing in this agreement contained shall be 16 ^Ijv Anrrrmrnt construed as against the niakint;; of special bitrat^on^'^" agreements fnr arbitration in connection with Agreements any specific transaction or as against agree- ments covering a series of transactions and business relations over an extended period. It is the purpose of this agreement to encourage all agreements for arbitration between resi- dents of the Argentine Republic and the United States of America, when not inconsistent with the principles herein set forth, and such agree- ments, when (lied with the resi3ective chambers of commerce, shall receive the nmral sui)port of both chambers of commerce. XV This agreement shall become effective npun Effective an exchange of ratifications between the twii chambers at any time within one year from July I. 1915. Hither chamber may withdraw from this agreement by giving notice of one year, but no such withdrawal shall in any way affect arbitrations which may l>e pending under this agreement at the time of the notice or at the time of the termination of the agreement. Chamber of Commerce of Buenos Aires, (Signed) Liis K. ZinKRnrm.KR. Tnr Chamber of Commerce of THE United St.xtes of America, (Signed) John H. Fahev. Effrctk'c as of April 10. 19 16. 17 EuIph of Arbitration In accordance ivlth Articles XII and XIII of the Agreement for Commercial Arbitration entered into on April lo, 1916, between the Chamber of Commerce of Buenos Aires and the Chamber of Commerce of the United States of America, these bodies agree to ap- prove the following Rides for Arbitration and Rules for Dealing zvith Merchandise. standard Clause Submission when Stan- dard Clause Not Used Rules of Arbitration Submission and Procedure I Whenever the standard clause provided in Article I of the agreement between the two chambers has been included in a contract it shall in itself constitute complete submission to the jurisdiction of the arbitrators. Whenever the standard clause has not been so included submission to arbitration shall be in the following form : Form 18 A controversy, dispute, or matter of differ- ence between the undersigned having arisen, and relating to a subject matter the nature of which briefly stated, is as follows : We do voluntarily submit the same, and all matters concerning the same, to (if selected from a section of an official list, so state), (if selected from a RnlpH uf Arbilratiun section of an utticial list, so state) for hearing and decision pursuant to the agreement between the Chamber of Com- merce of Buenos .\ires, and the Chamber of Commerce of the United States of America, put into force on April lo, 19 16. and the rules uf arbitration which have been adopted by said chambers of commerce, pursuant thereto, and we agree to stand to. abide by, and perform the award that may thereupon be made by virtue of this submission. A copy of this submission properly signed shall be filed with the clerk, together with sufficient evidence of proof of authority in the case of an agency, partnership, or corporation. of Repre««n- tatlvet By the mere fact of having accepted the S^'R^eprVwr formula of the uniform clause to which Article II refers, the contracting parties bind themselves to designate, the party resident in the United States of America a person domi- ciled in Buenos Aires, and the party resident in the Argentine Republic a person domiciled in New York, to represent them in all matters in connection with the arbitration. The designation may be made in the body of the contract itself, by correspondence, cable or radiogram, or else commnnicated by letter to either the Chamber of Commerce of the If SkUb nf Arbitration Authority &f Represen- tatives Service of Papers on Representa- tives either Special or General United States of America or to that of Buenos Aires, accordingly as the party resides in the United States of America or in the Argentine RepubHc. The designation of the person for the pur- pose indicated above shall ipso facto carry with it all the necessary powers to undertake the defense before the arbitrators and to in- tervene in all acts and measures that may be required by the special circumstances of the case, or in such as the respective Arbitration Committee may decide to undertake, including all measures relating to the preservation and sale of goods submitted to arbitration. No limitation of the above powers of the representatives shall be allowed. Any summons or notice given to the repre- sentative shall be deemed given to the princi pal. The designation of the representative may be general, that is to say. for all matters coming before the Arbitration Committee, or special, that is to say, limited to a specific case. In the case of either general or of special powers and even though a limit of time shall have been set for the exercise of these powers, by the representative, the latter shall continue to act in every matter in which he shall have started to intervene before the power ceased, unless a new appointment shall have been made. 20 Sulpfl of Arbltratton The Chamber of Commerce of the United Notrc^^ of °' States of America and the Chamber of Com- o1''R*e'prT.Sn* merce of Buenos Aires shall exchange without ***'^** delay every communication sent to them refer- ring to the designation of representatives. They shall likewise endeavor to agree on a ^^^ ^^^^ '^" uniform formula to be followed in all com- munications addressed to them relating to the appointment of representatives. Should one of the parties fail to name a pfI.ty'"'to°' representative, as provided above, the party re- l^caTnt.»t\w«' questing the arbitration shall, at his own ex- pense, either by telegram or radiogram, call upon the Arbitration Committee of his coun- try to inform the other contracting party of the request for arbitration, and shall further- more invite him to name his representative within the peremptory term of 15 days. After the expiration of this term, and provided the designation has not been made, the respective arbitration committee shall proceed to name such representative, who shall be a merchant and selected, if possible, from among the mem- bers of the trade to which the matter to be subnn'tted to arbitration belongs. The matter shall then be taken up by the said representa- tive, whose powers sliall \)e the same as if he had been originally designated by the in- terested party. His compensation shall be paid by the latter and the amount of this com- 21 Siiba of Arbitration Arbitration Proceedings Not Public Record Al- ways Open to Parties pensation determined by the committee making the appointment. 3 The proceedings shall not be public unless requested by the parties. Members of the com- mittee on arbitration may be present at any of the hearings. The records of a case shall be open at all times to the parties to the dispute and to others upon the written order of the committee on arbitration. statement of Facts Tlie hearing of cases shall commence as soon as practicable after submission. Each side shall prepare and submit a statement of the facts or what it regards to be the issues in the case. If they disagree as to what con- stitutes such issues the arbitrators shall de- termine and state in the award the issue or issues arising in the controversy as found by the arbitrators. Irrelevant Matters Spirit of Construction All irrelevant or unimportant matters shall be excluded. 6 The arbitrators shall construe these rules and the submission to them as being designed to secure reason and equity in matters of 22 Rnlra of Arbttratian traile niul coninierce, wiili the least possible expenditure of time, energy, and money, and in such manner as to avoid all unnecessary ir- ritation. 7 If three or more arbitrators are chosen, they shall select one of their number as chair- man. Nothing in these rules is to be con- strued to prevent parties from referring the controversy to one arbitrator. Chairman of Arbitrators One Arbitra- tor If parties who have submitted a controversy to arbitration fail to select arbitrators, the Committee on Arbitration of the country in which arbitration is to occur is hereby author- ized to select one arbitrator from each of the two sections of its official list, these two ar- bitrators to select a third arbitrator from the official list. Arbitrators so selected shall pro- ceed as if chosen by the parties. If the two arbitrators chosen in accordance with this par- agraph fail to select a third arbitrator, the third arbitrator shall be chosen in the man- ner described in .Article IX of the agreement between the two chambers of commerce. Failure to Select Arbl tratori Each chamber of commerce will provide Hearing ' Rooma, the parties who in its country submit to ar- |t^«tion«ry, 23 fiulps of ArbttratiDn bitration under these rules with adequate room and all necessary forms and papers free of charge, and through its Committee on Arbitra- tion will endeavor to do, or cause to be done, all such acts as it may properly do for the purpose of assisting the parties and the ar- bitrators in the course of arbitration. lO stenographer A Competent Stenographer shall be employ- ed and the expense for this service is to be charged against the parties to the submission as the arbitrators may decide. II Witnesses Each partv shall furnish his own witnesses. and Deposi- .... tions Depositions of witnesses may be received as competent evidence when properly attested. The expenses of depositions and the expenses of witnesses shall be borne by the parties offer- ing the same, unless the arbitrators in the award determine they should be allotted other- wise. 12 Form of The award of the arbitrators shall in each Award case contain a concise decision of the ques- tions in controversy, setting forth what each party is to do. deliver, or pay to the other, and fixing a period AAithin which the award is to be satisfied. 24 finlra of Arbitralton 13 Notice of the award shall immediatelv be Notification of Award given to the parties to an arbitration l)y the chairman of the Committee on Arbitration of the country in which arbitration occurs. Each |>arty shall be entitled to a copy of the award, and, at his own expense, shall be entitled to a copy of the record. 14 In case of any misunderstanding- or anv Questions of . ' , . . "^ . , ' Interpreta- question concerning the mterpretation of these tion of Rules rules of arbitration the decision of the Com- mittee on Arbitration of the country in which the arbitration occurs shall be accepted by the parties as conclusive. 15 Merchants who form a permanent business General , . , . , \greement« relation may at the beginning of their trans- ,'°^'"„^'"'"*'"** actions enter into a general agreement for arbitration under these rules and the agree- ment t>etween the two chambers of commerce put into force on April 10. 1916. for the ad- justment of any or all diflfcrences arising out of a series of transactions extending over a period of time and until one or the other gives >\'Titten notice to the other of his termination tlon zs R«Uh nf Arfattratinn Change of Rules While Controversy Pending Lapse of Right to Re- quest Arbi- tration of the agreement as to transactions then fu- ture. Copies of such agreements are to be filed both with the Committee on Arbitration of the Chamber of Commerce of Buenos Aires and the Committee on Arbitration of the Cham- ber of Commerce of the United States. Such an agreement shall be understood to have as to any controversy the same effect as if a special agreement such as is described in Ar- ticles I and II of the agreement between the two chambers of commerce had been made regarding the transaction in which the con- troversy arises. i6 If these rules are in any way changed after a controversy has been submitted to arbitra- tion, but before award is made, all proceed- ings in the arbitration and the award shall be in accordance with the rules as they stood at the time of submission. Except where otherwise provided, the right to request arbitration shall lapse at the end of 90 days, to count from the day following that on which, from the records of the re- spective customs houses, the purchaser or con- signee of the goods could have examined all of the goods in question ; Provided that upon application for an extension of this period made by either or both parties to the Arbitra- 26 ViulvB of Arbitraliim Hull CuiniuiUcc ui ilic Country wlicic the ar- bitration would be belcl. and presentation of a statement of reasons for the delay in the request for arbitration, such Committee may in proper cases grant such an extension of time as it deems reasonable, but not in excess of 90 days further than the period of 90 days mentioned above. If the case in question is not a sale, the right to request arbitration shall lapse at the end of 90 days to count from the day following the date of origin of the controversy, subject, however, to extension in the manner and under the circumstances set forth above. These same rules shall apply for cases of controversy on contracts of sale. 17 Wherever the word "party" or "parties" is used in these rules it shall refer to the parties to the submission, and wherever the word "ar- bitrator" or "arbitrators" is used it shall re- fer to the arbitrator or arbitrators, as the case may be. whether there are one or more. Wherever the word "committee" is used it shall refer to the Committee on Arbitration of the country in which the arbitration is held. Whenever the word "clerk" is used it refers to the clerk of the Committee on Arbitration in the countrv in which the arbitration is held. Deflnltlona 27 SSuUh of Arbitrattun i8 sion^of^Que's- ^^'^'^^'J q^iestion which the Committee on Ar- terpretation' titration may have as to the explanation or interpretation of the foregoing rules shall be settled by the Board of Directors of the respec- tive Chamber of Commerce. Fees All fees of arbitrators, expense for sten- ographers, and other minor expenses shall be awarded as the arbitrators may decide. Deposit The parties to tlie submission shall each de- posit with the clerk, at the time of filing the submission, the sum of $ioo gold, or equiva- lent, or at the discretion of the committee a larger amount, which shall be disbursed by him for their account in payment of arbitra- tors and stenographers' fees and minor ex- penses : (a) Arbitrators' fees, $io gold, or equiva- lent thereof, per day or part thereof; (b) Stenographers' fees, the usual remu- neration. If the deposit appears insufficient to the clerk, or becomes exhausted, he shall call upon the parties equally for such further sums as may be required, any balance to be refunded as the arbitrators may decide. 28 RulrH uf Arliitraliini Clerk The duties of the clerk of a Committee on Arbitration shall be as follows: He shall receive and file all submissions, all copies of awards, give notice of all hearings, keep a docket of all cases and such other books and memoranda as the committee shall from time ti> time direct. He shall render all necessary assistance to the arbitrators, attend to their clerical work, receive and disburse all fees and costs and keep careful and accurate accounts thereof, under the supervision of the Committee on Arbitra- tion. H a clerk of a Committee on Arbitration is unable to attend, a substitute shall be desig- nated by the Committee on Arbitration to take his place. Amendments Amendments to these rules may be pro- posed by the Committee on Arbitration of either country and shall become elTective upon their acceptance by both chambers o\ conimcice. Chamber of Commerce of Buenos Aires, (Signed) Luis E. Zuberbuiiler. The Chamber of Commerce of THE United States of America, (Signed) John H. IVmh-.v. Effective as of April lo, 19 16. 29 Rules for Dealing with Merchandise Consent Necessary Consent of Representa- tive Some- times not Sufficient The Committee on Arbitration in each country may deal with merchandise involved in a controversy submitted to their arbitra- tion whenever the two parties concerned, di- rectly or through representatives duly appoint- ed, shall have expressly manifested their con- sent thereto. But no such consent shall be granted by an agent designated by either of the two committees because of the neglect or failure of the party to designate an agent. Nature of Committee's Action The term "Deal With," employed in the above article, embraces the adoption of any or all of the followinsf measures : The discharge of cargo from vessel and storage in warehouse, in order to avoid demurrage ; Payment of customs or other charges and removal to warehouse, in order to avoid penalties for non-payment within a stated period ; Sale of merchandise which may dete- riorate in quality, or the preservation of 30 Sraliita luitli ItlrrrluiuMor which may be costly, whenever circum- stances make it advisable in order to avoid greater damage ; 4. Payment to brokers, who negotiate sales of such merchandise, of commis- sions due, according to custom house vahiation or usage and commercial practices ; 5. Pa\Tnent of cost of cartage and ware- housing, insurance, and other pre- miums, occasioned by the disposition of the merchandise and by the adoption of whatever means are necessary to pre- serve the rights of the interested par- ties. The methods of dealing with merchandise mentioned above are not exclusive, but are in- tended as merely suggestive. Immediately upon notification that a con- examination troversy is to be submitted to arbitration, Siio inv'ijived the chairman of the Committee on Arbitra- tion tion of the countrv in which arbitration will occur shall ascertain the condition of the merchandise involved, shall make diligent in- quiry as to whether or not steps should be 31 Bralinn milh iHrrrhaniiax' taken by his Committee in accordance with these rules, to prevent aggravation of damages, and at the earliest moment practicable shall recommend to his Committee any action he thinks necessary. The decision of the Com- when Ac- mittee as to any dealing with the merchandise able shall be entered upon the minutes of the Com- mittee with the name and the vote of each member, and the interested parties shall be notified immediately thereof. 4 Insurance, The Committee on Arbitration in the coun- Etc. try where the arbitration is to occur shall, in each case, see that proper provision is made, through insiuance in responsible companies, for complete indemnification for the loss or damage of the merchandise because of fire or other accident. Expenses The Secretary (clerk) of the Committee on Arbitration shall collect in equal proportions from both the parties to the controversy the funds necessary for the disposition of the mer- chandise. If either of the parties refuses to contribute, the Committee on Arbitration shall take means to obtain the necessary funds, if ^'*" it is considered advisable, the amount of this advance being secured by a lien against the 32 flraliiia uitlh firrrhanfttcr merchandise in question, which lien shall take procedence over all other claims. The Secretary of the Committee on Arbitra- J^or"y"F^" tion shall not solicit funds from the parties to and*Expen- the controversy, nor shall he make any pay- Funds **' ments of expenses caused by the disposal of the merchandise, without written order from the Committee on Arbitration. Proper documents will be required and must vouchers For * ^ Expenditures Ije kept covering all payments made on account of any necessary expenses which may l)e in- curred in disposing of the merchandise under these rules. These documents shall be at- tached to a copy of the decision delivered to the party who must pay the expenses or whose interests may be in any manner affected there- by. 8 If a majoritv of the members of the Com- Procedure .,.'., , For Sals mittee on Arbitration determine upon a sale, in accordance with Section i of these rules, the Committee shall at once enter an order upon its minutes, and proceed to arrange for the sale of the merchandise in question in the 33 Sgalittg millr MntlfunhiBt Cash or Credit customary manner upon any duly constituted exchange on which such merchandise is or- dinarily bought and sold; or if the merchan- dise is not bought and sold upon any exchange the Committee shall arrange for a public or private sale in accordance with the manner in which sales of this kind of merchandise are effected. 9 In arranging for sales the Committee on Ar- bitration shall take the necessary measures to secure the most favorable conditions possible. Proceeds of Sales 10 The sales shall be made for cash, that is, against the delivery of documents or of the goods themselves. But in special circum- stances, the determination of which rests with the Committee on Arbitration, the sale may be authorized on time payment, in which case two sureties satisfactory to the Committee will be demanded. II After deduction of the costs of sale, such as commissions, and any sum necessary for satis- fying any lien of either Chamber of Commerce, the proceeds of any sale shall be deposited in a bank, in a special account plainly designated as to its character, to await the award of the arbitrators. 34 flniltwg lottl^ fflfrfi|an5taf 12 By a \NTiting filed with the Committee on waiver or Arbitration which has jurisdiction, the par- ties to a controversy may waive any of these rules or they may in a similar manner pro- vide for methods and conditions of sale other than those fixed in these rules. 13 If these rules are in any way changed after change of , . 1 • t t • Rules while a controversy has been submitted to arbitra- controversy If 1 11- 1 11 1 Pending tion, any deahng with merchandise shall be in accordance with the rules as they stood when the submission was made. 14 Amendments to these rules may be propos- Amendm«nta ed by the Committee on Arbitration of either country, and shall, except as otherwise pro- vided, become effective upon their acceptance by both chambers of commerce. Chamber of Commerce of Buenos Aires, (Signed) Luis E. Zcberbuhler. The Chamber of Commerce of THE United St.ates of America, (Sigfned) John H. Fahey. Effective as of April 10, 19 16. 3S Form for Appointment of Representative (See Article IV of the Agreement, page lo, and the second Rule of Arbitration, page 19.) To be executed in duphcate and both copies to be sent to the Bolsa de Comercio de Buenos Aires or the Chamber of Commerce of the United States, according as the principal is resident in Argentina or the United States. (date) To the Bolsa de Comercio de Buenos Aires and the Chamber of Commerce of the United States: Pursuant to the Agreement for Arbitration, the Rules of Arbitration, and the Rules for Dealing with Merchandise as made effective on April 10, 191 6, between the Bolsa de Comercio de Buenos Aires and the Chamber of Commerce of the United States, and pursuant to the undertakings in transactions which the undersigned has with in which transactions there is an agreement for arbitration under the terms of the aforesaid Agreement and Rules, the undersigned hereby appoints as representative. 36 RETURN CIRCULATION DEPARTMENT TO^ 198 Main Stacks LOAN PERIOD 1 HOME USE 2 3 4 5 6 ALL BOOKS MAY BE RECALLED AFTER 7 DAYS. Renewls and Recharges may be made 4 days prior to the due date. Books may be Renewed by calling 642-3405. DUE AS STAMPED BELOW UNIVERSITY OF CALIFORNIA. BERKELEY FORM NO. DD6 BERKELEY CA 94720-6000 1 Mrr«cu»