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18 IMPORTANT ANNUAL ADDRESS OF THE PRESI- DENT AND BOARD OF MANAGERS OF THE LAKE CARRIERS’ ASSOCIATION—THE BUSINESS OF THE YEAR SUCCINCT- LY REPORTED AND RECOMMEN- DATIONS MADE FOR FUTURE ACTION—ONE OF THE AB- LEST DOCUMENS EVER SUBMITTED TO THE ASSOCIATION. To the Members of the Lake Carriers’ Association: The Board of Managers of the association submits here- with its annual report of the proceedings and operations of the association during the past year. MEMBERSHIP AND TONNAGE. The year just closing has shown a vety gratifying in- crease in the tonnage of the association. The total tonnage enrolled on the books was 760,866, an increase of 75,000 tons over the tonnage of the preceding year. The follow- ing shows the comparative tonnage of the association for a series of years beginning 1894: TSQA Ges aiser clesceaje we scle eee 590,000 tons MOOG, Seti cae ns <a eteiscaeig= ole 8 618,000 tons Photo Or Carn ORO oatog omnme 722,863 tons yak eine cta no Ole ineE Con 687,237 tons TY Ses eicceiesoimya inte vuelve ioe erhene 86,014 tons PSOQ a roves ates oie alse sete en 760,866 tons The tonnage for 1899 is about 40,000 tons greater than in 1896, heretofore the best year in the history of the associa- tion. It should be remembered that the increase of 75,000 tons which 1899 shows over 1898, was obtained without a large increase of tonnage on the Great Lakes. At the end of 1808 a large fleet of vessels was sent from the takes to the Atlantic coast. The new tonnage coming out during the season of 18909 was not so large as in some previous years.and some of it came out so late in the season that it will not appear on our rolls until next spring. The hand- some increase is all the more pleasing because it has been obtained by inducing tonnage to join the association which has not heretofore been connected with it. The large fleets of James Davidson and the Ogdensburg Transit Company, both of which were members of the association in 1896 have not been members of the association during the present year. Otherwise the tonnage would have shown a still more gratifying increase. An analysis of the tonnage figures for 1899 shows that of a total tonnage of 760,866 tons, 596,016 tons were made up of vessels of over 1,200 tons, paying tonnage dues of three cents per ton, and 164,850 tons were comprised of vessels less than 1,200 tons, paying tonnage dues of two cents per ton. The increase in tonnage of 1899 over 1898 is made up almost entirely of the larger vessels, the tonnage of the smaller vessels for 1898 and 1899 being as follows: 1808, 163,562 tons; 1899, 164,850 tons. It is a gratifying fact that the association has been able to maintain its tonnage of small vessels in 1899 in spite of the large number of this class of boats which left the lakes in the fall of 1898. It is a well known fact that these boats which were sent to the coast in 1898 were largely smaller vessels belonging to fleets which contained a considerable number of large vessels. This fact is reflected in the tonnage figures. In 1898 only 58,359 tons of the association’s tonnage was comprised of fleets entirely composedof small vessels. In 1899, 77,678 tons was comprised of fleets composed exclusively of small ves- sels. In other words, the loss of the small vessels belong- ing to large fleets, which were sent to the coast in the fall of 1898, has been made up by inducing numerous individual owners of small vessels to put their boats in the associa- tion for the first time. FINANCES, The Treasurer’s report will be submitted to you, show- ing the receipts and expenditures of the association during the past twelve months. Although it will not show that the association is entirely free from debt, it is the most grati- fvine statement that the Treasurer has been able to make for several years. The.total amount of dues that have been collected this season is $21,582.92, showing an increase of $3,883.79 over last year. At the time of the last annual meeting there were unpaid liabilities of $3,348.43, and there were uncollected dues amounting to nearly »:.000. In other words, at the time of the last annual meeting the .reasurer’s report showed a deficit of about $2,500. At the present time the total unpaid liabilities which th Treas- urer reports shows only $400.00. The dues have been more successfully and promptly collected this season than ever before in the history of the association, There are no dues remaining unpaid. In other words, the association has, during the past year, very nearly cleaned up the debt which has been standing against it and carried over from year to year since the large expenditures connected with the De- troit bridge matter in 1896. The Treasurer's report shows that the association has been subjected to a very large extra expense during the past year on account of the shoveling strike at Buffalo. To meet these expenses the Executive Committee of the asso- ciation voted that the sum of three cents per thousand bushels should be added to the price for shoveling grain at Buffalo and Erie the extra three cents per thousand bush- els to be paid over to the Treasurer of the Lake Carrier’s Association to defray the expenses of the association in connection with the shoveling strike. The Treasurer’s re- port shows collections amounting to over $3,500.00 from this source, and while the very high freights which have prevailed on the lakes during the past season have tended to decrease the amount of grain carried in competition with THE MARINE RECORD. the rail lines, so that the revenue from this source is not quite so large as expected, nevertheless it has been of material assistance in enabling the Treasurer to make a more satisfactory financial statement than for several years past. The extra charge of three cents per thousand bush- els collected from vessels on grain carried to Buffalo was asked from owners only as a temporary emergency meas ure. It seemed the most equitable way of meeting a special need, The large expense incurred by the association at Buffalo was for the benefit of vessels engaged in carrying grain, and the three cents per thousand was paid only by vessels engaged in that trade and exactly in proportion to the amount of grain which they carried. The association cannot, however, expect to ask special payments from ves- sels engaged in special trades on the lakes except under very extraordinary circumstances, and the vessels: in the grain trade deserve the thanks of the association for the willingness with which they have accepted the suggestion of the Executive Committee and paid the special tax im- posed upon them. OPERATIONS OF THE SHIPPING OFFICES. Shipping offices have been maintained by the association during the past year at Cleveland, Chicago, South Chicago, Buffalo, Ashtabula, Toledo and Milwaukee. A condensed report, taken from the annual report of Chief Shipping Master Rumsey, shows the number of men shipped through the various offices during the past season in comparison with former years, as follows: Number Year. of men. TOQQ baie ee ees Ge cas 16,681 TSOS ea hee . 16,508 TOO7s etic Gasae co ato as 13,139 isle OR ter eee ar nie tae eonaG 11,838 Number Number Offices. of men. of men. 1899. 1808. Cleveland re ees ee nie 3,886 3,799 Chicd gowns ork cst eee eines 3,195 2,911 SOtith Guicaeorn ecient sale 1,981 1,914 Bathaloue, sacs ren eee er ot Qty, 2,003 Aishtapila ee toe teen. 2,400 2,358 T OlCUO sare soe ie ee 1,298 ee) Maliwpalike@eiis tas tier re ee nnae 1,804 1,718 _ The total expense of maintaining the shipping offices , dur- ing the past season was $10,648.07 about 42% per cent of the total expenses of the association. The cost to the as- sociation during the past year for each man put on board of vessels by the shipping offices was about 64 cents, as @ompared with 65 cents in 1808. GRAIN BILL OF LADING MATTER. The committee appointed at the last annual meeting to consider the desirability of effecting some changes in the grain bill of lading was composed of L. ‘C. Waldo, Chair- man; H. Coulby, J. J. H. Brown, A. W. Colton, Dennis Sullivan, David Vance and A. B. Wolvin. This commit- tee made a report in executive session at the last annual meeting, in which they proposed the following amendments to the grain bill of lading: First.—Vessel not to be liable for shortage in excess of one-half bushel per thousand, but not to receive overage; vessel to collect freight on actual out-turn. Second.The consignee to furnish elevator to begin un- loading within twenty-four hours after report of arrival, or pay demurrage at the rate of one-twelfth of the freight less unloading charge, for each twenty-four hours’ delay. Third.—Delivery to the party to whose care consigned to te good delivery, exempting the vessel from further liabil- ity. Fourth.—Shipper to furnish an elevator to commence loading within twenty-four hours after report of arrival, or pay demurrage thereafter equal to one-twelfth of the freight less unloading charge, for each twenty-four hours or part thereof. It was felt that the vessels were entitled to some relief from the serious delays which they had suffered in waiting for elevators to load or unload grain, and that the short- age clause to which vessels have been subject on the lakes was a hardship not generally borne by other carriers, either by rail or water, and therefore not one to which lake vessels ought to be subject. The proposed changes in the grain bill of lading aroused, as might be expected, strong interest and strong opposition from other parties inter- ested in the grain trade. The changes proposed were quite radical and interfered with trade customs which had grown up. It was‘argued also by exporters that they introduced uncertainty into the expense of moving grain by lake, which would interfere with the close figuring on exporting busi- ness which they considered necessary to hold the business for the lake route. After the Committee on Grain Bill of Lading reported to the annual meeting, the members voted to continue the committee with power to consult and con- fer with the other interests involved and agree upon a new grain bill of lading, to go into operation at the opening of navigation in 1899. After the adjournment of the annual meeting, the committee proceeded carefully to collect all the facts relating to the amounts of shortages and overruns the extent of delay to which vessels have been subject and the causes thereof, and in general to prepare themselves to argue their case at a conference to be held of all interests Such conference was finally arranged and held in Buffalo on March 7th, 8th and oth, 1899. At this conference the following parties were represented: Lake Carriers’ Asso- ciation, by its Executive Committee and Committee on JANUARY 18, 1900. Grain Bill of Lading; western shippers by delegations from the Duluth Board of Trade, Chicago Board of Trade and Toledo Produce Exchange; the grain exporters and merchants by strong delegations from the New York Pro- duce Exchange, Philadelphia Commercial Exchange, Buf- falo Merchants’ Exchange; Buffalo elevator owners; trunk lines by their general traffic managers or other authorized representatives. Each section of the report of the Bill of Lading Committee was taken up and discussed at great length. At the close of the discussion the matter was re- ferred to a committee of sixteen, containing representatives of all the different interests connected with the grain trade. After nearly two days’ consideration, this committee sub- mitted its report, which report with its recommendations was adopted by the general conference. The Buffalo conference early developed the fact that both trunk lines and grain merchants very strenuously objected to the changes proposed at the annual meeting of the Lake Carriers’ Association. It was also made clear that they fully realized the hardship which vessels had suffered under the practice that had prevailed in former years, and it was agreed all around that the lake carriers were entitled to re- dress, but that it should be sought in a manner least ob- jectionable to the other interests. One obstacle in the way of better service at Buffalo appeared to be a lack of co- operation between the elevators at that port. There had been no elevator association in Buffalo in the year 1808, and the delay in unloading cargoes had been much in- creased from that cause. The Buffalo conference at one time adjourned to permit a meeting of the elevator owners of that city, and at that meeting the preliminary steps were taken to re-form the Western Elevating Association, which has been in operation during the year 1899. The final action of the Buffalo conference was as fol- Ows: That the Buffalo trunk lines be allowed ten days from the adjournment of the conference to determine what could be done to obtain the elevator facilities at the port of Buf- faol for the lake vessels, and that in the meantime the Lake Carriers’ Association should suspend action upon its pro- posed demurrage clause; that a system of arbitration be provided for cases of special hardship to vessels from de- lays and shortages; that a proper clause be inserted in the grain bill of lading releasing vessels from liability when they have delivered “order” cargoes to the party in whose care they were consigned and taken an agreed form of re- ceipt; that all grain should be consigned to an individual consignee and not to an elevator or a railroad company. _ Pending action by the trunk lines on these recommenda- tions, the Buffalo conference adjourned. Subsequently the Buffalo elevators having rail connection and doing nearly all the business at that port, re-established an association, and each trunk line designated a considerable group of elevators at which their grain might be delivered in Buffalo. The Western Elevating Association appointed a committee of three, known as the Committee of Control, whose special duty it was to provide good dispatch in unloading grain vessels at the port of Buffalo, and to secure as far as pos- sible the full facilities of the port to vessels arriving there with grain cargoes. The trunk lines and grain merchants expressed a wish that this system be given a season’s trial before the prevailing practices in the grain trade be changed by changes in the bill of lading. Under these circum- stances, the Executive and Bill of Lading Committees of the association met at €leveland on April 11th, 1899, and practically accepted the offer of the trunk lines and grain merchants. The action agreed upon at the Cleveland meet- ing is as follows: _ First.—Each vessel owner may, if he so desires, at the time he charters the vessel, provide for an individual con- signee at lake destination, and he may stipulate that if his vessel is sent to more than two elevators to load the extra service shall be without expense to the vessel. It is believed that delays at ports of loading may thus be remedied to a great extent. Second.—The following provision should be included in all Jake grain bills of lading: _ “Tf the grain covered by this bill of lading is consigned in care of a party at destination of vessel, then, unless the original of this instrument is there presented for cancella- tion on or before arrival of vessel, delivery to the party in whose care the grain is consigned herein, shall be a good and valid delivery.” Third.—The Lake ‘Carriers’ Association accepts the offer of the commercial exchanges tendering the services of their respective boards of arbitration without expense to the Lake Carriers’ Association, to hear and decide any claims the Lake Carriers’ Association mav desire so heard and de- cided, in respect to any exceptional detention for which the lake carrier deems it just that demurrage should be paid by the party or parties responsible for such detention, or in respect to any exceptional grain shortage for which the lake carrier claims he should be relieved from liability. Fourth.—The Lake Carriers’ Association will appoint a committee of three of its members, resident in Buffalo, to act in consultation with the Committee of Control pro- . > vided by the Western Elevating Association, in securing proEneE. dispatch in unloading grain vessels at the port of Fifth—tThe grain trade having objecte clause which the Lake Caren hinoentine Sener insert in the lake grain bill of lading upon the ground that the commercial value of the bill of lading for collateral uses would be impaired, the association has decided not to insist upon the use of the proposed clause, but to allow the existing shortage clause to stand unchanged until the close of the present lake season. The Lake Carriers’ Associa- tion then hopes to present a definite and reasonable short-