The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-07-28
RAILROADSAND SHIPPERS
THAT CLAUSE IN FOREIGN AND DO
MEsTIC BILLS OF LADING.
Report of Commissioner Phillips, of the
Memphis Freight Bureau, to the Cot
ton Exchange The st. Louis Ex-
change Sustains Memphis.

Mr.. s. Phillips, commissioner OF the
Memphis freight bureau, has sent to Sec
rotary Hotter, OF the Cotton exchange, a
lengthy communication in response to q
request OF that body asking him to inves-
tigate circular No. OF the trunk line joint
committee requiring all foreign and do
nestle bills Of lading on through traffic to
contain a clause providing that carriers
shall have the full benefit of any insurance
which may be effected upon or for account
OF the shipment covered by such bills of
lading, etc. Commissioner Phillips ad-
dressed a circular letter to each railroad
and fast freight line doing business in
Memphis and obtained limited number
responses. The trunk line committee has
no jurisdiction over business intrusted for
transportation from this city to points west
OF Wheeling and Parkersburg, W. Va.
Pittsburg, Pa; Salamanca, Black Rock
Suspension Bridge and Buffalo, n. Y, or
on business taken by the several railroads
from Memphis TO New Orleans or other
ports on the Gulf Of Mexico or any port on
the Atlantic seaboard south of Baltimore,
Md.
Commissioner Phillips adds that unless
the western and southern roads are unit
with the trunk lines the resolution cannot
be successfully enforced, as unanimous
action on the part OF the initial roads and
fast freight lines not working over trunk
lines is absolutely necessary TO its agree
ment. From the present temper OF south
ern roads do not think any great appre-
hension need be felt that these roads will
insist on shippers accepting the bills OF
lading containing the insurance clause, and
they will offer no resistance TO incorpo-
rating il i'll their bills OF lading that the
trunk lines committee will be obliged TO
let the resolution remain imperative.
Should the Objectionable clause be insisted
upon at the beginning of the next cotton
season by railroads and fast freight lines,
the shipper should see that his property
should be entrusted to responsible carriers
only. protest should be piled by each
shipper against his being compelled to
accept bills OF lading containing this in
surance clause. These protests would
carry with them legal privileges and then
merchants acting jointly, or the merchants
exchange, could bring friendly suit in
court TO determine the legality OF the car
riers' course, etc.
The st. Louis Cotton exchange, on the
10Th, adopted the following report
A special meeting OF the board OF direct
ors OF the Cotton exchange was held this
day to hear the report OF special commit
tee appointed to consider the action OF the
Memphis Cotton exchange, held 18th in
slant, on the subject OF Insurance Clause
in the Bills Of Lading"
On motion, the following report OF the
committee was adopted:
The board OF directors OF the 81. Louis
Cotton exchange approve the action OF the
Memphis Cotton exchange OF July IL, 1855,
In reference 20 the obnoxious insurance
clause, and while they indorse the follow
> Ing resolutions OF the Memphis exchange
desire further 10 call the attention OF the
Joint committee and Commissioner Fink
20 the fact that this Objectionable clause
tends 10 destroy the commercial and nego-
table value OF the bill OF lading.
We would further call attention 10 tho
action Of the board OF underwriters OF
Liverpool, England, bearing upon this
subject for the, cotton season OF 1883 and
1859. which reads rs follows
All policies and tori contracts Of insur-
snce TO contain a clause:
Providing, That this insurance shall
not inure TO the benefit OF any carrier or
fire insurance companies, and that no en-
yagcments shall be entered into with land
carriers relieving them from their common
law liabilities.
J. n. SrEdALL, President.
G. W. SIMMONS, Secretary.
The insurance clause was at one time n
part Of all the bills Of lading. but the cot
ion factors objected, and the /. 4 81. l..
struck il out first. The other lines chung
20 the clause, and would not give IL up
until they found that Il was diyeriing bust
ness 90 the !. x st. L., when the Nandalia
Issued bill without II, on which was
printed Cotton bill Of lading," and fol-
lowing that, the other roads succumbed.
The treasurers have been anxious 10 have
the clause reinstated, however. and their
desire took form at the meeting Of the
Joint commissioners. The consignor are
opposed TO IL, for they say that they insure
the cotton, and. II Il Is lost, the insurance
company should pay them direct They
do not care 80 much about II except tof
this fact, that the insurance companies nay
promptly and the railroad company takes
H. time in turning the money over 10 the
consignors. IN the mean time taking the
benefit OF the use Of the money. When an
insurance company pays direct 10 the In
turcr the latter receives the money within
few DAYS, but when the railroad company
gets Il, Il insists that the cotton shall
be traced and liz Identity proven
and by the time the insurer receives III,
money perhaps months have passed, but
all that while the railroad company has
been using the cash Il receives from IN,
insurance company. The railroads claim
that. NJ carriers, they arc liable, and IL
order 10 protect themselves they must 70
cciyo the money from the insurance com
pany, and 10 make the insurance company
recognize an obligation 30 them. Other
wise the insurance company will pay thI
money 10 the conEignor aud then try 4
recover IL from the railroad company OF
the ground OF IT, responsibility ~ a carrier
and thus, II the insurance company sue
cecds. Il will get something for nothing
for II will collect liz premiums from th
consignor, pay him the moneys aud tibet
make the railroad company reimburse II
which will leave Il the premiums a. prof
without any risk. The consignoH do no
care about that phase OF the question, bu
they are opposed to the action OF III
trunk lines IN keeping them out Of ihcI
money In order 10 protect themselyc
against insurance companies
instantaneous Death
Young Julius Tondcfioot was shC
a. al Il. 4 Ill e.