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copy of said bill is attached to and made a part of this report as Exhibit I. Your committee desires more time to consider this

measure.

III. RECOMMENDATIONS.

In conclusion your committee recommends:

(1) That the American Bar Association pass a resolution indorsing Pomerene Senate Bill No. 1654 relating to Bills of Lading in Interstate and Foreign Commerce.

(2) That the American Bar Association pass a resolution commending the continuation of the National Bankruptcy Act and opposing any attempt to repeal same, and that Clayton H. B. No. 150, Blackmon H. B. No. 3986, and Sims H. B. No. 5684 be defeated.

July 15, 1913.

(3) That the American Bar Association pass a resolution giving your committee further time to consider Clayton H. B. No. 135, Kinkead H. B. No. 5151, Dent H. B. No. 5894 and Byrnes H. B. No. 4301, and to report thereon at the next annual meeting of the Association.

Respectfully submitted,

FRANCIS B. JAMES, Chairman,
W. U. HENSEL,

ERNEST T. FLORANCE.

FREDERICK L. GEDDES,
J. A. C. KENNEDY,

Committee on Commercial Law,

American Bar Association.

EXHIBIT A.

63D CONGRESS, 1ST SESSION. S. 1654.

IN THE SENATE OF THE UNITED STATES.

APRIL 28, 1913.

Mr. Pomerene introduced the following bill; which was read twice and referred to the Committee on Interstate Commerce.

A BILL

RELATING TO BILLS OF LADING IN INTERSTATE AND FOREIGN COMMERCE.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That bills of lading issued by any common carrier for the transportation of goods from a place in a state to a place in a foreign country or from a place in one state to a place in another state, or from a place in one state to a place in the same state through another state or a foreign country shall be governed by this act.

SEC. 2. That bills of lading issued by any common carrier for the transportation of goods from a foreign country to a place in a state shall be governed by this act, except such provision or provisions as may be inapplicable for want of power in or jurisdiction of Congress to legislate thereon.

SEC. 3. That a bill in which it is stated that the goods are consigned or destined to a specified person is a straight bill.

SEC. 4. That a bill in which it is stated that the goods are consigned or destined to the order of any person named in such bill is an order bill. Any provision in such a bill that it is nonnegotiable shall not affect its negotiability within the meaning of this act.

SEC. 5. That an order bill shall have the words "order of " printed thereon immediately before the name of the person upon whose order the goods received are deliverable and the issuing carrier shall be liable to any person injured thereby for the damage caused by failure to comply with this requirement. But should an order bill be issued without such compliance such failure shall not impair the bill as an order bill.

SEC. 6. That order bills issued in a state for the transportation of goods to any place in the United States on the Continent of North America, except Alaska and Panama, shall not be issued in parts or sets. If so issued, the carrier issuing them shall be liable for failure to deliver the goods described therein to anyone who purchases a part for value in good faith, even though the purchase be after the delivery of the goods by the carrier to a holder of one of the other parts: Provided, however, That nothing contained in

this section shall interpreted or construed to forbid the issuing of order bills in parts or sets for such transportation of goods to Alaska, Panama, Porto Rico, the Philippines, Hawaii, or foreign countries, or to impose the liabilities set forth in this section for so doing.

SEC. 7. That when more than one order bill is issued in a state for the same goods to be transported to any place in the United States on the Continent of North America, except Alaska and Panama, the word "duplicate" or some other word or words indicating that the document is not an original bill, shall be placed plainly upon the face of every such bill except the one first issued. A carrier shall be liable for the damage caused by his failure so to do to anyone who has purchased the bill for value in good faith as an original, even though the purchase be after the delivery of the goods by the carrier to the holder of the original bill: Provided, however, That nothing contained in this section shall in such case for such transportation of goods to Alaska, Panama, Porto Rico, the Philippines, Hawaii, or foreign countries be interpreted or construed so as to require the placing of the word "duplicate" thereon, or to impose the liabilities set forth in this section for failure so to do.

SEC. 8. That a straight bill shall have placed plainly upon its face by the carrier issuing it "nonnegotiable" or "not negotiable."

This section shall not apply, however, to memoranda or acknowledgments of an informal character.

SEC. 9. That the insertion in an order bill of the name of a person to be notified of the arrival of the goods shall not limit. the negotiability of the bill or constitute notice to a purchaser thereof of any rights or equities of such person in the goods.

SEC. 10. That except as otherwise provided in this act, where a consignor receives a bill and makes no objection to its terms or conditions at the time he receives it, neither the consignor, nor any person who accepts delivery of the goods, nor any preson who seeks to enforce any provisions of the bill, shall be allowed to deny that he is bound by such terms and conditions so far as they are not contrary to law or public policy.

SEC. 11. That a carrier, in the absence of some lawful excuse, is bound to deliver goods upon a demand made either by the consignee named in the bill for the goods or, if the bill is an order bill, by the holder thereof, if such a demand is accompanied by

(a) An offer in good faith to satisfy the carrier's lawful lien upon the goods;

(b) An offer in good faith to surrender, properly indorsed, the bill which was issued for the goods, if the bill is an order bill; and

(c) A readiness and willingness to sign, when the goods are delivered, an acknowledgment that they have been delivered, if such signature is requested by the carrier.

In case the carrier refuses or fails to deliver the goods, in compliance with a demand by the consignee or holder so accompanied, the burden shall be upon the carrier to establish the existence of a lawful excuse for such refusal or failure.

SEC. 12. That a carrier is justified, subject to the provisions of the three following sections, in delivering goods to one who is(a) A person lawfully entitled to the possession of the goods, or (b) The consignee named in a straight bill for the goods, or (c) A person in possession of an order bill for the goods, by the terms of which the goods are deliverable to his order; or which has been indorsed to him, or in blank by the consignee, or by the mediate or immediate indorsee of the consignee.

SEC. 13. That where a carrier delivers goods to one who is not lawfully entitled to the possession of them, the carrier shall be liable to anyone having a right of property or possession in the goods if he delivered the goods otherwise than as authorized by subdivisions (b) and (c) of the preceding section; and, though he delivered the goods as authorized by either of said subdivisions, he shall be so liable if prior to such delivery he

(a) Had been requested, by or on behalf of a person having a right of property or possession in the goods, not to make such delivery, or

(b) Had information at the time of the delivery that it was to a person not lawfully entitled to the possession of the goods.

Such request or information, to be effective within the meaning of this section, must be given to an officer or agent of the carrier,

the actual or apparent scope of whose duties includes action upon such a request or information, and must be given in time to enable the officer or agent to whom it is given, acting with reasonable diligence, to stop delivery of the goods.

SEC. 14. That except as provided in section twenty-nine, and except when compelled by legal process, if a carrier delivers goods for which an order bill had been issued, the negotiation of which would transfer the right to the possession of the goods, and fails to take up and cancel the bill, such carrier shall be liable for failure to deliver the goods to anyone who for value and in good faith purchases such bill whether such purchaser acquired title to the bill before or after the delivery of the goods by the carrier and notwithstanding delivery was made to the person entitled thereto.

SEC. 15. That except as provided in section twenty-nine, and except when compelled by legal process, if a carrier delivers part of the goods for which an order bill had been issued an fails either

(a) To take up and cancel the bill, or

(b) To place plainly upon it a statement that a portion of the goods has been delivered with a description which may be in general terms either of the goods or packages that have been so deliv- · ered or of the goods or packages which still remain in the carrier's possession, he shall be liable for failure to deliver all the goods specified in the bill to anyone who for value and in good faith purchases it, whether such purchaser acquired title to it before or after the delivery of any portion of the goods by the carrier, and notwithstanding such delivery was made to the person entitled thereto.

SEC. 16. That any alteration, addition, or erasure in a bill after its issue without authority from the carrier issuing the same, either in writing or noted on the bill, shall be void, whatever be the nature and purpose of the change, and the bill shall be enforceable according to its original tenor.

SEC. 17. That where an order bill has been lost or destroyed a court of competent jurisdiction may order the delivery of the goods upon satisfactory proof of such loss or destruction; and

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