New-York tribune., 1922-10-02
American Steamship Owners
Association Declares Pro-
! posed international Step
Would Be Added Handicap
New Set Recommended
Local Officials Would Have
Underwriters Insure the
Risk of Unexplained Loss

II
Brussels, the American companies pro-
pose substitute set. A copy of the
recommendations has been sent to
Judge Charles NJ. Hough and Norman
y. Beecher, United States delegates to
the conferences abroad. for presenta-
ton at the Forthcoming sessions.
The substance of the objections of
American companies to the Hague
rules Is that they would throw greater
burdens on the shipowners, making
them liable for losses which may have
occurred beyond their Jurisdiction, and
that these risks should properly be
assumed by marine underwriters. In
their counter proposals the American
concerns approve some of the features
of the Hague regulations. but recon-
mend nd,substantial notifications. Among
the important changes are the follow
ing:
The valuation per package should
be increased from SIo0 to $50 sterling
only, instead of 800 sterling, as pro-
vided in the Hague rules.
2-Notice of loss or damage to goods
must be filed within sixty days after
delivery, claims must be filed within
six months and suit must be instituted
within one year. The Hague rules
would permit suit within two years
without previous notice of claim.
3-The American suggestions include
lHS SU-Cdiied JaSOH CiduSe, pTQNlQluR
for contribution in general average,
even though the loss results from un
seaworthiness, latenr defects or negli-'
gence in the management or naviga-
tion of the ship, on the condition that
due diligence is exercised to make her
seaworthy. This clause is the one up
held as valid by the United States Su
preme Court in the Jason case, and is
customarily inserted IN all bills of lad
ing to-day.
Decision Made Friday
The action of the association was
taken at a meeting Friday, but news
of the decision was withheld until yes
terday, when Ira A. Campbell, counsel
for the shipowners, made public the
complete text of the proposed changes.
Commenting on this decision, Mr..
Campbell said:
This (ship owner's) burden is en-
HANGED under the revised Hague rules
by not requiring the giving of any no
tice of claim of damage, and by per-
mtting suit to be brought two years
after the date of the delivery Of the
goods or the date when the goods
should have been delivered. The rules
make the removal of the goods prina
facie evidence of the delivery by the
carrier of the goods as described in
the bill of lading, but the failure to
give nOllCe QoeS not prevent tne lnSll-
tuition of suit within two years. The
practical result will be that the ship
owner will be faced with suits long
after delivery without any previous
notice of claim, and under the evil
dence adduced by the shipper or con-
signee will not be able to escape lia-
bility for concealed damage, unless he
can show how and where the loss oc-
Cured. The labor which the ship
1DI 1Voyy rs{t
ularly seamen, is transient in charac-
ter. SO that it is very easy to conceive
that under the rules he will be unable
to obtain evidence of the cause of the
damage, which might have been avail
able to him if he had known of the
loss within a reasonable time after
the delivery of the goods
"These losses are customarily in
sured and the effect of transferring
owner will simply mean that the cargo
underwater will recoup ite loss from
the ship owner. Manifestly, the car
rier cannot afford to carry the risks
uninsured, and it will, therefore, cover
itself by insuring in protection and
indemnity associations, and if COM
petition makes it possible, will add the
premium to the freight. This in the
end would result in double insurance
premium being paid for one risk, first
by the shipper or consignee. and sec
ond by the ship owner, and ultimately
the consumer through increased
freight. The real beneficiary will be
the cargo underwater, who receives
the premium and recoups his loss from
the second underwater. In the judg-
ment of the association this is uneco-
nomical and unsound.
Would Be Further Handicap
american ship owners cannot afford
to carry the risks without insurance,
and there is only one source from
which the increased expense can be
obtained, namely, freight. If it were
possible to increase the freights cor
respondingly, then the burden would
y be passed to the ultimate consumer
But this is impossible under existing
competitive conditions. If the Ameri-
.can ship owner were able to operate his
ship at a profit, as are our foreign
competitors, the inability to increase
the freight rates would simply mean
reduction in profits Yet the fact is
that American ship owners are under
such greater costs of operating as COM
pared with those of other nationalities
that there is no hope of establishing
: and maintaining an American merchant
: marine without the assistance of sub
sidy. This has been established by
tic hearings WHiCn tne congressional
committees have been holding and is
demonstrated by the strenuous efforts
being made by the present Administra-
tion to pass the ship subsidy bill.
Until conditions in the shipping
= business, therefore, change and until
American ships can be operated on
parity with those of other nations any
increase in the cost of operating Amer
lean ships will be but a further handi-
cap to the development of American
shipping.
at is true that if bills of iading con-
tanning the revised Hague rules were
adopted by all the nations the burden
would fall equally on all ship owners,
provided, of course, that American
ship owners could obtain protection and
indemnity insurance as cheaply as the
foreign ship owners. But this is de-
lusive, because, while the increased
burden to the ship owners, if not trans
ferable to the shippers through in
crease in freights, may result in re-
ducing the profits of the foreign ship
owners, its effect upon the American
ship owners will be to increase their
I losses and thus necessitate greater
government aid or make more certain
the impossibility of ever establishing
and maintaining an adequate American
merchant marine"
Cars Repaired Despite Strike