shall not be liable for damage by fire, even though caused by the act or neglect of the shipowner or his servants or of any person for whom he is responsible. 16. The apportionment of the sum(s) mentioned in clause 1 as between freight and the said charges is as follows:

1 At ports where, according to the schedule of apportionment there are no charges payable by the con. signees under clause 15, insert "Nil."

17. If discharged in a dock in London the consignees shall pay two-thirds of the dock dues.

18. If vessel discharges at Sharpness Docks the cargo shall be discharged at the average rate of St. Petersburg standards per weather working day. 19. Should the vessel not be loaded or discharged with dispatch in the manner herein provided whereby the vessel is detained demurrage shall be paid at pounds sterling per day and pro rata for any part of a day.

20. The freight and charges (if any) payable by the consignees under clause 15 shall be paid in cash less advance freight (if any), as follows:

In respect of all goods discharged to craft (except goods discharged at Sharpness Docks for lighterage to Gloucester) 50 per cent shall be paid upon vessel's commencing discharge and the balance before delivery of such goods. In respect of deck cargo discharged otherwise than to craft 50 per cent shall be paid upon vessel's commencing discharge, a further 40 per cent before delivery of such goods, and the remainder upon final outturn being ascertained. In respect of all goods other than those aforesaid (including goods discharged to craft at Sharpness Docks for lighterage to Gloucester) 50 per cent shall be paid upon vessel's commencing discharge and 30 per cent upon breaking bulk in the hold; a further 10 per cent shall be paid before completion of discharge, and the remainder upon final outturn being ascertained, without prejudice to the shipowner's right to exercise his lien under clause 22. These percentages shall be calculated upon the quantity of cargo on board the vessel upon arrival at destination.

21. General average, if any, shall be settled according to the York/Antwerp rules, 1924.

22. The master or shipowner shall have an absolute lien upon the cargo for all freight, dead freight, demurrage, average, and charges under clause 15.

23. A letter may be substituted for a telegram wherever required herein if it be sent so as to arrive as speedily.

24. Notice of any claim under this charter or under any bill of lading given hereunder must be given within 12 months of the date of the vessel's arrival at final port of discharge otherwise all claims shall be deemed to be waived. 25. per cent brokerage upon the amount of the freight, dead freight, and demurrage is due by the shipowner upon shipment of cargo, to A. E. Martin & Co. (Ltd.), of London, by whom the vessel shall be reported at the

customhouse if discharged at that port.

26. The penalty for nonperformance of this agreement shall be proved damages not exdeeding the estimated amount of freight.

CHAMBER OF SHIPPING WHITE SEA WOOD CHARTER TO THE UNITED KINGDOM,

1899

IT IS THIS DAY MUTUALLY AGREED between steamship called the

of

19__. owners of the good of tons net register, or thereabouts, and St. Petersburg standards, the shipowner having a margin of 71⁄2 per cent, more or less, up to 750 standards, and 5 per cent on any further quantity above the 750 standards, but not exceeding 75 standards in any case, master, now of

and

charterers.

1. That the steamship, being tight, staunch, and strong, and every way fitted for the voyage, shall with all convenient speed (having liberty to take cargo for owner's benefit, either direct or to any port or ports on the way, or to

-----), and after discharge of same, sail and proceed to

or

so near thereunto as she may safely get, and there load, always afloat, from the agents of the said charterers, a full and complete cargo of mill-sawn deals and/or battens and/or boards and/or scantlings and/or ends (boards and scantlings together not to exceed standards, battens not to exceed standards, and ends not to exceed standards), with a sufficient quantity of ends, 11 feet and under, for broken stowage only. (Memo: Owners may agree any other description of cargo. Owners may agree to expunge the words "always afloat" at loading and/or discharging ports, or agree a special lighterage clause for shallow ports or places.)

The steamer to be provided with a deck load, at full freight, at charterers' risk, not exceeding what she can reasonably stow and carry, over and above her tackle, apparel, provisions, and furniture; and being so loaded shall therewith proceed to or so near thereunto, as she may safely get, and deliver

the same, always afloat, on being paid freight as follows:

Two-thirds freight Two-thirds freight Two-thirds freight Two-thirds freight

1 Battens to be considered 2 by 4 inches and up to 3 by 7 inches.

Should more ends be shipped than are intended for broken stowage, then 5 per cent of the cargo to pay two-thirds freight. in full of all port charges and pilotages.

2. The master or owners to telegraph the shippers of the cargo (telegraphic address as per margin), giving the charterers' names, and giving at least 10 days' notice of the probable date of steamer's arrival at the loading port. Default of this not to be considered a breach of charter, but charterers not to be responsible for delay in loading caused by such default of the master or owners.

3. The cargo to be loaded and discharged with customary steamship dispatch, as fast as the steamer can receive and deliver during the ordinary working hours of the respective ports but according to the custom of the respective ports, Sundays, general or local holidays (unless used), in both loading and discharging excepted. Should the steamer be detained beyond the time stipulated as above for loading or discharging, demurrage shall be paid at pounds per day,

and pro rata for any part thereof. The cargo to be brought to and taken from alongside the steamer at charterers' risk and expense as customary. The master has liberty to bring iron or other dead weight as ballast from the loading or any other port. (Memo: Owners may arrange for a fixed average number of standards per day for loading and/or discharging.)

4. Sufficient cash for steamer's ordinary disbursements to be advanced the master, if required by him, at port of loading, on usual terms.

5. If the cargo can not be loaded and/or discharged by reason of a strike or lockout of any class of workmen essential to the loading and/or discharge of the cargo, or by reason of epidemics, the time for loading and/or discharging shall not count during the continuance of such strike or lockout or epidemic (a strike or lockout of the shippers' and/or receivers' men only shall not exonerate them from any demurrage for which they may be liable under this charter if by the use of reasonable diligence they could have obtained other suitable labor), and in case of any delay by reason of the before-mentioned causes, no claim for damages shall be made by the shippers, the receivers of the cargo, the owners of the ship, or by any other party under this charter.

6. The bills of lading to be prepared on the form indorsed on this charter, and shall be signed by the master, quality, condition, and measure unknown, freight and all conditions, causes, and exceptions as per this charter. The owners shall be responsible for the number of pieces signed for by the master or his duly authorized agents, fire and fraud excepted. Perils of the seas and rivers when the cargo is in lighters, also excepted.

7. The act of God, the King's enemies, restraints of princes and rulers, and perils of the seas excepted. Also fire, barratry of the master and crew, pirates, collisions, strandings and accidents of navigation, or latent defects in, or accidents to, hull and/or machinery, and/or boilers, always excepted, even when occasioned by the negligence, default, or error in judgment of the pilot, master, mariners, or other persons employed by the shipowner, or for whose acts he is responsible, not resulting, however, in any case from want of due diligence by the owner of the ship, or by the ship's husband or manager. The steamer has liberty to call at any ports in any order, to sail without pilots, to tow and assist vessels in distress, and to deviate for the purpose of saving life or property, and has liberty to coal at any port or ports, without prejudice to this charter.

8. Should ice (except in the spring) effectually prevent the steamer getting into the port of loading, this charter to be null and void; and if during the loading (except in the spring) ice should make it dangerous to complete the cargo, the master shall have liberty to sail with what cargo he has on board, with the option of filling up at a port or ports on the way home, for a port or ports on the way to, or for the port of discharge under this charter party for owners' benefit. If the nation under whose flag the steamer sails shall be at war, whereby the free navigation of the steamer is endangered, or if prohibition of export or blockade prevent the loading or completion of the cargo, this charter shall be to such extent null and void at the last outward port of delivery or at any subsequent period when the difficulty may arise.

9. The freight to be paid in cash without discount (less freight advance if any) on unloading and right delivery of the cargo.

10. The master not to be obliged to sign more than one set of bills of lading, unless due written notice be given him before commencing to load, and the cargo to be supplied so as to enable him to keep separate the different consignments. Not more than 7 sets bills of lading shall be required.

7 The number to be filled in at the time of chartering.

11. In case of average the same to be settled according to the York/Antwerp rules, 1890, excepting that jettison of deck cargo (and the freight thereon) for the common safety shall be allowed as general average.

12. If discharged in a dock in London the consignees to pay two-thirds of the dock dues.

13. The steamer to be addressed to the shippers appointed at the port of loading, paying the usual port charges and address money. In case there should

be more than one shipper the amount to be divided pro rata.

14. Should any lighterage be required over the bar at Archangel, same to be at charterers' risk but at steamer's expense.

15. If from Onega, the steamer is to load as much cargo in Onega River as she can do in safety, and the balance in Onega Bay.

16. The master or owners to have an absolute lien upon the cargo for all freight, dead freight, demurrage, and average.

17. Penalty for nonperformance of this agreement, proved damages, not exceeding estimated amount of freight.

18. The brokerage is at 5 per cent and is due to

on the signing

hereof, and the steamer is to be reported by them at the customhouse at

While in pre-war years many full cargoes of wood, principally southern pine, were imported from the United States, they have become somewhat of a rarity in recent times and confined almost entirely to the outports, so that to-day, with the exception of the countries named, shipments are almost entirely made on liner bills of lading.

Bills of lading.-In making out bills of lading it is essential to keep in mind that shipping companies can not be called upon to split up bills of lading, therefore it is necessary that separate bills of lading be made out for each portion for which separate delivery may be required. Also a distinctive mark must be placed on each shipment to enable the ships' workers to readily allocate goods to their respective bills of lading. Unfortunately, shippers have in some cases neglected to take these precautions and heavy charges for landing and sorting have been incurred. A little extra trouble in this matter is well repaid.

MARINE INSURANCE

The problems of marine insurance are so vast and complicated that they have become a special branch of the insurance profession and one that would take years of experience to master.

While, therefore, not attempting to discuss the entire question, there are certain points of vital importance to American lumber exporters doing business with the United Kingdom which should be given careful consideration when the insurance contract, or policy as it is called, is drawn up.

Some lumber contracts, such as the "Albion" used for north European softwoods, call for insurance to be effected in accordance with the Timber Trade Federation clauses which are incorporated and made a part of the contract. As far as American hardwoods and softwoods are concerned, however, there are no rules as to what must be covered except that sometimes the amount is given, but unless the shipper has included full coverage of every insurable risk in the policy furnished, he is liable to find himself called upon to make good any loss or damage sustained thereby.

AMOUNT OF COVERAGE

The amount of coverage differs, but most contracts require the full c. i. f. value of the shipment, plus 10 per cent for imaginary profits, to be insured for the buyers' benefit.

Inasmuch as the freight is not payable until after arrival of the vessel and due delivery of the goods, it might be thought that to insure the f. o. b. value is sufficient. This is a common mistake, for although the freight may not be at risk, yet the risk of damage to the shipment is always present, and if after freight has been earned and the value of the goods necessarily increased to that extent, then the proportionate damaged value will be considerably greater. As an illustration, let it be supposed that goods are badly damaged in transit and a claim is filed against the insurance company. If only the f. o. b. value has been insured the buyer can not take into account the freight which he has had to pay, but only the insured value is taken into consideration in adjusting the claim. As a result, the question immediately arises as to who is liable for the difference between the value of the insurance policy and the amount of the buyer's claim, and as it can not be claimed from the underwriters, the buyer looks to the shipper to reimburse him. Where, therefore, the contract does not stipulate the amount to be covered, American exporters, if they are to avoid carrying the risk of that part of the value represented by freight, should insure either the c. i. f. value, plus 10 per cent, or the f. o. b. value, plus 10 per cent, and the freight as well.

There is also a clause which does, to a certain extent, overcome some of the difficulties regarding insurance being effected for the f. o. b. value only, reading as follows:

In consideration of the declaring of a separate amount of insurance sufficient to cover freight and charges payable on delivery, it is agreed that in the event of a claim for particular average same is to be based on a comparison of the net sound and damaged values after deduction of freight and charges payable at destination. It is distinctly understood and agreed, however, that this clause is only operative in event of claim for particular average, and in the event of a claim for total loss this company is only to be liable for the insured value of the merchandise insured, as provided herein, and expenses, and in no event is this clause to be operative unless a separate amount sufficient to cover the freight and charges payable on delivery is declared at the time of issuance of this certificate.

With this clause particular average loss would then be adjusted on a basis of loss ascertained after deduction of freight and charges from both the sound and the damaged value.

"OPEN" FORM OF POLICY

Many exporters insure their shipments under a form of contract known as an "open" policy, this form being largely used in the United States lumber trade. Under this form of cover a separate policy is not issued for each shipment, but a certificate is issued by the assured stating that a certain declaration has been made on the policy, which certificate is now generally accepted by most of the banks and the import trade.