Maritime History of the Great Lakes

Marine Review (Cleveland, OH), October 1914, p. 394

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Grain Shortages Lake Vo Owners are Now Determined to Settle One of the Most Annoying Features of the HE subject of grain shortage on I the lakes is now being seriously attacked by the vessel owners jointly. A meeting was held in Buffalo on Sept. 3 between committees repre- senting the Lake Carriers' Association, the Dominion Marine Association, and the Association of Lake Lines, presided over by Mr. Fred E. Signer who is the commissioner for the Association of Lake Lines. The Lake Carriers' Asso- ciation was represented by President William Livingstone, Harvey D. Goul- der, counsel; A. E. Cornelius, W. H. McGean, Herbert K. Oakes, Joseph - Rodgers, A. E. R. Schneider and A. W. Thomson. The Dominion Marine Asso- 'ciation was represented by H. W. Cowan, George Fair, Francis King and A. E. Matthews. The Association of Lake Lines was represented by E. T. Douglas, Charles M. Heald, Fred E. Signer, W. H. Smith, J. A. Stevenson and C. F. Strasmer. Some Common Understanding The purpose of the meeting was to arrive at some understanding on the subject of grain shortages. During the present season shortages have amounted to as much as 1 per cent of the cargo carried and the issue is obviously quite acute as the vessel has to pay for all shortages. Shortages have run as high as 800 bushels, which means that the vessel owner has had to pay out of his own pocket $800. When it is con- sidered that grain has been carried on the lakes this season for 7% cents, out 'of which the vessel pays practically one- half cent for trimming and unloading, there is little left with which to pay for shortages. Vessel owners are by no means a unit on the subject as to how the case should be treated. Some of them want the responsibility for shortage eliminated altogether, holding it to be a natural incident of the grain trade which should be borne by the grain men. Others manifest a willing- ness to be 'responsible for a_ shortage which does not exceed one-quarter bushel per 1,000 bushels, or in any event not over one-half bushel per 1,000 bushels. The actual shortages on all grains carried during 1913 was one-third bushel per 1,000 bushels. The 1913 report of Junius Smith, lake weighmaster at Buf- falo. who weighed 122,000,000 bushels out of the total of 192,000,000 bushels carried, shows a wheat shortage of 40,080 bushels and an overrun of 38,159 bushels, out of a total of 72,900,898 bushels carried. This works out at only two pounds per 1,000 bushels carried, and of course is quite a_ satisfactory showing as a whole, but the trouble is that certain vessel owners were penal- ized to the extent of $40,080 while others received a bonus of $38,159. The movement of corn was practically only one-fifth of the wheat movement but its shortages were infinitely greater in pro- portion. The corn shortage was 8,762 bush- els with an overrun of 1,953 bushels, working out at 28 pounds per 1,000 bushels carried. The total shortage on all grains was 62,999 bushels and the over- run 46,791, averaging about 8 pounds per 1,000 bushels. This average would undoubtedly be satisfactory were it possible to distribute it pro rata among the ships that carried the grain, but unfortunately it falls upon individuals and occasionally with particular severity, as has been shown during the present year. What the vessel owners want is either to abolish shortages altogether or else fix a definite limit to them in the bill of lading. The contention of the grain shippers. all along has been that it is imperative that the bill of lading should be a bankable document and that if it calls for 400,000 bushels of grain, that amount or its equivalent in money should be delivered. Granting this con- tention, vessel owners cannot see why the shortages may not be insured by the shippers and collected from the under- writers when any shortage occurs. One-eighth of One Per Cent They also point to the fact that the railroads will only assume responsibility for a shortage which is over and above one-eighth of one per cent of the ship- ment. Flax is carried on a uniform bill of lading limiting responsibility to one-half bushel per 1,000 bushels, but the point is made that flax usually goes direct to the consumer whereas grain may pass through a dozen hands and the bill of lading through a dozen banks before it reaches the consumer. It is pointed out, however, that if one-half bushel in 1,000 bushels is a fair shortage for flax, which is very slippery and will go almost where water goes, it would be a very generous allowance for the other grains. No conclusion' was reached at the Trade meeting, but the following recommenda- tion was approved: "That this conference of representa- tives of the Lake Carriers' Association, the Association of Lake Lines, and the Dominion Marine Association, is unani- mously of the opinion that there is no reason why the vessel should assume responsibility for discrepancies in the weights of grain cargoes, and that the grain bill of lading, instead of throw- ing this responsibility upon the carriers, should contain a clause by the terms of which the vessel will have no claim for overages in the out-turns of cargoes, will accept freight on actual out-turns, and will assume the responsibility for shortages, which shall not exceed in any event one-half bushel per thousand. "That for the purpose of discussing with the shippers of the United States and Canada. the adoption of a general understanding for such a bill of lad- ing, and of taking such action as may be deemed advisable, a meeting be arranged by the chairmen of the three associations above named, to be. at- tended by duly authorized representa- tives of these associations, and at which representatives of the shippers shall be invited to attend and discuss the terms of the proposed understanding. "And that when the said meeting is arranged copies of this recommendation be communicated to the various Grain Exchanges and Boards of Trade at lake shipping centers in both countries, with the request that they appoint represen-. tatives accordingly." The Cullen Barge Corporation, 1 Broadway, New York city, has pur- chased the entire fleet of the Harbor Transportation Co., also of 1 Broad- way, consisting of eight coal barges. These have been merged with the fleet of the Cullen Barge Corporation and they bring the total of barges and scows purchased by this corporation during the past 30 days, to 11. The transfer was affective Sept. 1. The Cullen Barge Corporation operates in New York har- bor, Long Island sound and the Hud- son river. The steamer Moldegaard of the Ocean Freight Line is the first coal carrier to come in under the American flag under the new Ship Registry Bill. She is: now engaged in carrying American: coal' to South American ports. .

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