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Between

10 and 15 years (E.)

Over

15 years
(F.)

Generally
(G.)

One-third to be deducted off all repairs and renewals, except ironwork of hull and cementing and chain cables, from which one-sixth to be deducted. Anchors

to be allowed in full.

One-third to be deducted off all repairs and renewals. Anchors to be allowed in full. One-sixth to be deducted (off chain cables.

The deductions (except as to provisions and stores, machinery, and boilers) to be regulated by the age of the ship, and not the age of the particular part of her to which they apply. No painting bottom to be allowed if the bottom has not been painted within six months previous to the date of accident. No deduction to be made in respect of old material which is repaired without being replaced by new, and provisions and stores which have not been in use.

In the case of wooden or composite ships,

When a ship is under one year old from date of original register, at the time of accident, no deduction new for old shall be made. After that period a deduction of one-third shall be made, with the following exceptions:

Anchors shall be allowed in full. Chain cables shall be subject to a deduction of one-sixth only.

No deduction shall be made in respect of provisions and stores which had not been in use.

Metal sheathing shall be dealt with, by allowing in full the cost of a weight equal to the gross weight of metal sheathing stripped off, minus the proceeds of the old metal. Nails, felt, and labour metalling are subject to a deduction of one-third.

In the case of ships generally,

In the case of all ships, the expense of straightening bent iron work, including labour of taking out and replacing it, shall be allowed in full.

Graving-dock dues, including expenses of removals, cartages, use of shears, stages, and graving-dock materials, shall be allowed in full.

Temporary Repairs.

XIV. No deductions "new for old" shall be made from the cost of temporary repairs of damage allowable as general average.

Loss of Freight.

XV. Loss of freight arising from damage to or loss of cargo shall be made good as general average, either when caused by a general average act, or when the damage to or loss of cargo is so made good.

Amount to be made good for Cargo Lost or Damaged by Sacrifice. XVI. The amount to be made good as general average for damage or loss of goods sacrificed shall be the loss which the owner of the goods has sustained thereby, based on the market values at the date of the arrival of the vessel or at the termination of the adventure.

Contributory Values.

XVII. The contribution to a general average shall be made upon the actual values of the property at the termination of the adventure, to which

shall be added the amount made good as general average for property sacrificed; deduction being made from the shipowner's freight and passagemoney at risk, of such port charges and crew's wages as would not have been incurred had the ship and cargo been totally lost at the date of the general average act or sacrifice, and have not been allowed as general average; deduction being also made from the value of the property of all charges incurred in respect thereof subsequently to the general average act, except such charges as are allowed in general average.

Passengers' luggage and personal effects, not shipped under bill of lading, shall not contribute to general average.

Adjustment.

XVIII. Except as provided in the foregoing rules, the adjustment shall be drawn up in accordance with the law and practice that would have governed the adjustment had the contract of affreightment not contained a clause to pay general average according to these rules.

APPENDIX V.

THE UNITED STATES ACT OF CONGRESS, 1893.

The subjoined Act, which came into force on July 1st, 1893, is of great importance to all shipowners carrying passengers or goods to or from the United States. In effect, it endeavours to make a contract for the parties to a bill of lading, instead of leaving them to fix the terms of their own agreement. This it does by declaring that either the usual wide negligence clause, or the clauses relieving the owner from his implied contract of seaworthiness shall be null and void, but that a diligent owner shall be relieved from liability for certain named risks. The effect of this Act must be considered according as the action against a shipowner is brought in the Courts of England or the United States.

I. In the English Courts, it would seem from the decision in the Missouri Case (a), that the Courts will infer an intention of the parties to be bound by English law, and will give effect to the clauses which English law recognises, though they are declared null and void by American law. Such actions will usually be brought on contracts made in the United S'ates, but the Court will disregard the lex loci contractus in favour of the expressed or implied intention of the parties to be bound by English law. It will be desirable, however, for shipowners to make the point clear in their charters and bills of lading by inserting in prominent type some such clause as the following:

"The parties hereto intend and agree that the construction and validity of the terms of this contract shall be decided by English law."

II. In the United States Courts, such provisions as the negligence clause were held unenforceable as contrary to public policy in the Montana Case. As, however, in that case, the Supreme Court of the United States stated that if the parties, when entering into the contract, clearly manifested a mutual intention that the contract should be governed by the law of some other country, the law of the place of contract would not apply; it would seem that a clause such as suggested, expressing the intention of the parties to be governed by English law, would prevent the application of the United States Statute. It may be noted, however, that the Statute says that negligence clauses "snall not be lawful.” This can hardly, however, apply to contracts made in England.

The adoption of the suggested clause will probably, therefore, protect the shipowner both in English and United States Courts, but the judicial interpretation of this very important Act will require careful attention.

(a) (1889) 42 Ch. D. 321.

ACT OF CONGRESS, 1893.

[Public No. 57.]

An Act relating to navigation of vessels, bills of lading, and to certain obligations, duties, and rights in connection with the carriage of property. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, that it shall not be lawful for the manager, agent, master or owner of any vesssel transporting merchandise or property from or between ports of the United States and foreign ports to insert in any bill of lading or shipping document any clause, covenant, or agreement, whereby it, he or they shall be relieved from liability for loss or damage arising from negligence, fault or failure in proper loading, stowage, custody, care, or proper delivery of any and all lawful merchandise or property committed to its or their charge. Any and all words or clauses of such import inserted in bills of lading or shipping receipts shall be null and void and of no effect.

§ 2. That it shall not be lawful for any vessel transporting merchandise or property from or between ports of the United States of America, and foreign ports, her owner, master, agent, or manager to insert in any bill of lading or shipping document any covenant or agreement whereby the obligations of the owner or owners of the said vessel to exercise due diligence, properly equip, man, provision, and outfit said vessel, and to make said vessel seaworthy and capable of performing her intended voyage, or whereby the obligations of the master, officers, agents, or servants to carefully handle and stow her cargo, and to care for and properly deliver same, shall in any wise be lessened, weakened or avoided.

§ 3. That if the owner of any vessel transporting merchandise or property to or from any port in the United States of America shall exercise due diligence to make the said vessel in all respects seaworthy and properly manned, equipped, and supplied, neither the vessel, her owner or owners, agent, or charterers, shall become or be held responsible for damage or loss resulting from faults or errors in navigation, or in the management of said vessel, nor shall the vessel, her owner or owners, charterers, agent, or master be held liable for losses arising from dangers of the sea or other navigable waters, acts of God, or public enemies, or the inherent defect, quality, or vice of the things carried, or from insufficiency of package, or seizure under legal process, or for loss resulting from any act or omission of the shipper or owner of the goods, his agent or representative, or from saving or attempting to save life or property at sea, or from any deviation in rendering such service.

§ 4. That it shall be the duty of the owner or owners, master or agent of any vessel transporting merchandise or property from or between ports of the United States and foreign ports to issue to shippers of any lawful merchandise a bill of lading, or shipping document stating, among other things, the marks necessary for identification, number of packages, or quantity, stating whether it be carrier's or shipper's weight, and apparent order or condition of such merchandise or property delivered to and received by the owner, master, or agent of the vessel for transportation, and such document shall be primâ facie evidence of the receipt of the merchandise therein described.

§ 5. That for a violation of any of the provisions of this Act the agent, owner, or master of the vessel guilty of such violation, and who refuses to issue on demand the bill of lading herein provided for, shall be liable to a fine not exceeding two thousand dollars. The amount of the fine and

costs for such violation shall be a lien upon the vessel, whose agent, owner, or master is guilty of such violation, and such vessel may be libelled therefor in any district court of the United States, within whose jurisdiction the ves-el may be found. One half of such penalty shall go to the party injured by such violation, and the remainder to the Government of the United States.

§ 6. Tha this Act shall not be held to modify or repeal sections fortytwo hundred and eight-one, forty-two hundred and eighty-two, and forty-two hundred and ei hty-three of the Revised Statutes of the United States, or any other Statute defining the liability of vessels, their owners, or representatives.

§ 7. Sections one and four of this Act shall not apply to the transportation of live animals.

§ 8. That this Act shall take effect from and after the first day of July, eighteen hundred and ninety-three.

Approved, February 13th, 1893.

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