Chapter 415. Relating to bills of lading in interstate and foreign commerce
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CHAP. 415.— An Act Relating to bills of lading in interstate and foreign commerce. August 29, 1916[[S. 19](/us/bill/64/s/19)][[Public, No. 239](/us/pl/64/239)] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,* Bills of lading.Issued in interstate and foreign commerce governed hereby. That bills of lading issued by any common carrier for the transportation of goods in any Territory of the United States, or the District of Columbia, or from a place in 539a 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 foreign country, shall be governed by this Act.
Sec. 2. That a bill in which it is stated that the goods are consignedStraight bills defined. or destined to a specified person is a straight bill. Sec. 3. That a bill in which it is stated that the goods are consignedOrder bills defined. or destined to the order of any person named in such bill is an order bill. Any provision in such a bill or in any notice, contract, rule,Negotiability. regulation, or tariff that it is nonnegotiable shall be null and void and shall not affect its negotiability within the meaning of this Act unless upon its face and in writing agreed to by the shipper.
Sec. 4. That order bills issued in a State for the transportation ofIssues in part for continental use forbidden. 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*Proviso*.For insular, etc., use permitted. shall be 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. 5. That when more than one order bill is issued in a State forDuplicates.Character to be noted. 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 beLiability for failure. 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*Proviso*.Not applicable to insular, etc., use. 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. 6. That a straight bill shall have placed plainly upon itsStraight bills.Nonnegotiability to be marked. 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. 7. That the insertion in an order bill of the name of a personOrder bills.Notification request not to affect. 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. 8. That a carrier, in the absence of some lawful excuse, isDelivery of goods by carrier. 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 uponOffer to pay charges. the goods;
(b)Possession of the bill of lading and an offer in good faith toSurrender of bill. 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,Receipt for delivery. 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 complianceEffect of refusal. with a demand by the consignee or holder so accompanied, 540the burden shall be upon the carrier to establish the existence of a lawful excuse for such refusal or failure. Sec. 9. Person entitled to delivery. That a carrier is justified, subject to the provisions of the three following sections, in delivering goods to one who is—
(a)Owner. A person lawfully entitled to the possession of the goods, or
(b)Consignee. The consignee named in a straight bill for the goods, or
(c)Legal possessor of order bill. 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. 10. Liability for unauthorized delivery. 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)Delivery after notice.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)By person. 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)Information against. Had information at the time of the delivery that it was to a person not lawfully entitled to the possession of the goods. Notice requirements.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. 11. Liability if bill not taken up and canceled.*Post*. p. 542. That except as provided in section twenty-six, 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. 12. Partial delivery.Requirements. That except as provided in section twenty-six, and except when compelled by legal process, if a carrier delivers part of the goods for which an order bill had been issued and fails either—
(a)Canceling bill. To take up and cancel the bill, or
(b)Statement of part delivered. 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 delivered or of the goods or packages which still remain in the carrier’s possession, he Liability for failure.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. 13. Alterations, etc., void. 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. 14. Lost, etc., order bills.Delivery of goods on order of court. That where an order bill has been lost, stolen, or destroyed a court of competent jurisdiction may order the delivery of the goods upon satisfactory proof of such loss, theft, or destruction and upon the giving of a bond, with sufficient surety, to be approved by the court, to protect the carrier or any person injured by such delivery from any liability or loss incurred by reason of the original bill remaining outstanding. The court may also in its discretion order 541the payment of the carrier’s reasonable costs and counsel fees: *Provided*,*Proviso*.Voluntary indemnifying bond. a voluntary indemnifying bond without order of court shall be binding on the parties thereto. The delivery of the goods under an order of the court, as providedRights of purchaser without notice, etc. in this section, shall not relieve the carrier from liability to a person to whom the order bill has been or shall be negotiated for value without notice of the proceedings or of the delivery of the goods. Sec. 15. That a bill, upon the face of which the word “duplicate”Liability for duplicate bills. or some other word or words indicating that the document is not an original bill is placed, plainly shall impose upon the carrier issuing the same the liability of one who represents and warrants that such bill is an accurate copy of an original bill properly issued, but no other liability. Sec. 16. That no title to goods or right to their possession assertedLiability for refusing delivery of goods. by a carrier for his own benefit shall excuse him from liability for refusing to deliver the goods according to the terms of a bill issued for them, unless such title or right is derived directly or indirectly from a transfer made by the consignor or consignee after the shipment, or from the carrier's lien. Sec. 17. That if more than one person claim the title or possessionProtection if adverse claims made. of goods, the carrier may require all known claimants to interplead, either as a defense to an action brought against him for nondelivery of the goods or as an original suit, whichever is appropriate. Sec. 18. That if some one other than the consignee or the person inTime allowed to ascertain owner. possession of the bill has a claim to the title or possession of the goods, and the carrier has information of such claim, the carrier shall be excused from liability for refusing to deliver the goods, either to the consignee or person in possession of the bill or to the adverse claimant, until the carrier has had a reasonable time to ascertain the validity of the adverse claim or to bring legal proceedings to compel all claimants to interplead. Sec. 19. That except as provided in the two preceding sectionsEnforcing rights of third persons. and in section nine, no right or title of a third person, unless enforced by legal process, shall be a defense to an action brought by the consignee of a straight bill or by the holder of an order bill against the carrier for failure to deliver the goods on demand. Sec. 20. That when goods are loaded by a carrier such carrierResponsibility for goods.When loaded by carrier. shall count the packages of goods, if package freight, and ascertain the kind and quantity if bulk freight, and such carrier shall not, in such cases, insert in the bill of lading or in any notice, receipt, contract, rule, regulation, or tariff, “Shipper’s weight, load, and count,” or other words of like purport, indicating that the goods were loaded by the shipper and the description of them made by him or in case of bulk freight and freight not concealed by packages the description made by him. If so inserted, contrary to the provisions of this section, said words shall be treated as null and void and as if not inserted therein. Sec. 21. That when package freight or bulk freight is loaded by aLoaded by shipper in packages or bulk. shipper and the goods are described in a bill of lading merely by a statement of marks or labels upon them or upon packages containing them, or by a statement that the goods are said to be goods of a certain kind or quantity, or in a certain condition, or it is stated in the bill of lading that packages are said to contain goods of a certain kind or quantity or in a certain condition, or that the contents or condition of the contents of packages are unknown, or words of like purport are contained in the bill of lading, such statements, if true, shall not make liable the carrier issuing the bill of lading, although the goods are not of the kind or quantity or in the condition which the marks or labels upon them indicate, or of the kind or quantity or in the condition they were said to be by the consignor. TheEffect of “Shipper’s weight, load, and count.” earner may also by inserting in the bill of lading the words “Shipper’s 542weight, load, and count,” or other words of like purport indicate that the goods were loaded by the shipper and the description of them made by him; and if such statement be true, the carrier shall not be liable for damages caused by the improper loading or by the nonreceipt or by the misdescription of the goods described in the bill of *Proviso*.Responsibility when shipper affords weighing facilities.lading: *Provided, however*, Where the shipper of bulk freight installs and maintains adequate facilities for weighing such freight, and the same are available to the carrier, then the carrier, upon written request of such shipper and when given a reasonable opportunity so to do, shall ascertain the kind and quantity of bulk freight within a reasonable time after such written request, and the carriers shall not in such cases insert in the bill of lading the words “Shipper’s weight,” or other words of like purport, and if so inserted contrary to the provisions of this section, said words shall be treated as null and void and as if not inserted therein. Sec. 22. Liability of carrier for acts of agents. That if a bill of lading has been issued by a carrier or on his behalf by an agent or employee the scope of whose actual or apparent authority includes the receiving of goods and issuing bills of lading therefor for transportation in commerce among the several States and with foreign nations, the carrier shall be liable to
(a)the owner of goods covered by a straight bill subject to existing right of stoppage in transitu or
(b)the holder of an order bill, who has given value in good faith, relying upon the description therein of the goods, for damages caused by the nonreceipt by the carrier of all or part of the goods or their failure to correspond with the description thereof in the bill at the time of its issue. Sec. 23. Protection against attachment. That if goods are delivered to a carrier by the owner or by a person whose act in conveying the title to them to a purchaser for value in good faith would bind the owner, and an order bill is issued for them, they can not thereafter, while in the possession of the carrier, be attached by garnishment or otherwise or be levied upon under an execution unless the bill be first surrendered to the carrier or its negotiation enjoined. The carrier shall in no such case be compelled to deliver the actual possession of the goods until the bill is surrendered to him or impounded by the court. Sec. 24. Legal rights of creditors. That a creditor whose debtor is the owner of an order bill shall be entitled to such aid from courts of appropriate jurisdiction by injunction and otherwise in attaching such bill or in satisfying the claim by means thereof as is allowed at law or in equity in regard to property which can not readily be attached or levied upon by ordinary legal process. Sec. 25. Limit of carrier’s lien. That if an order bill is issued the carrier shall have a lien on the goods therein mentioned for all charges on those goods for freight, storage, demurrage and terminal charges, and expenses necessary for the preservation of the goods or incident to then transportation subsequent to the date of the bill and all other charges incurred in transportation and delivery, unless the bill expressly enumerates other charges for which a lien is claimed. In such case there shall also be a lien for the charges enumerated so far as they are allowed by law and the contract between the consignor and the carrier. Sec. 26. Carrier not liable if goods lawfully sold. That after goods have been lawfully sold to satisfy a carrier’s lien, or because they have not been claimed, or because they are perishable or hazardous, the carrier shall not thereafter be liable for failure to deliver the goods themselves to the consignee or owner of the goods, or to a holder of the bill given for the goods when they were shipped, even if such bill be an order bill. Sec. 27. Negotiation of order bills.Blank indorsement. That an order bill may be negotiated by delivery where, by the terms of the bill, the carrier undertakes to deliver the goods to the order of a specified person, and such person or a subsequent indorsee of the bill has indorsed it in blank. 543 Sec. 28. That an order bill may be negotiated by the indorsementIndorsement to order. of the person to whose order the goods are deliverable by the tenor of the bill. Such indorsement may be in blank or to a specified person. If indorsed to a specified person, it may be negotiated again by the indorsement of such person in blank or to another specified person. Subsequent negotiation may be made in like manner. Sec. 29. That a bill may be transferred by the holder by delivery,Transfer of bill. accompanied with an agreement, express or implied, to transfer the title to the bill or to the goods represented thereby. A straight billStraight bills subject to equities. can not be negotiated free from existing equities, and the indorsement of such a bill gives the transferee no additional right. Sec. 30. That an order bill may be negotiated by any person inNegotiation of bills by possessor. possession of the same, however such possession may have been acquired, if by the terms of the bill the carrier undertakes to deliver the goods to the order of such person, or if at the time of negotiation the bill is in such form that it may be negotiated by delivery. Sec. 31. That a person to whom an order bill has been duly negotiatedRights of purchaser. acquires thereby—
(a)Such title to the goods as the person negotiating the bill to himTitle to goods. had or had ability to convey to a purchaser in good faith for value, and also such title to the goods as the consignee and consignor had or had power to convey to a purchaser in good faith for value; and
(b)The direct obligation of the carrier to hold possession of theObligation of carrier. goods for him according to the terms of the bill as fully as if the carrier had contracted directly with him. Sec. 32. That a person to whom a bill has been transferred, but notRights of transferee if bill not negotiated. negotiated, acquires thereby as against the transferor the title to the goods, subject to the terms of any agreement with the transferor. IfNotification to carrier. the bill is a straight bill such person also acquires the right to notify the carrier of the transfer to him of such bill and thereby to become the direct obligee of whatever obligations the carrier owed to the transferor of the bill immediately before the notification. Prior to the notification of the carrier by the transferor or transfereeAttachment, etc., before notice. of a straight bill the title of the transferee to the goods and the right to acquire the obligation of the carrier may be defeated by garnishment or by attachment or execution upon the goods by a creditor of the transferor, or by a notification to the carrier by the transferor or a subsequent purchaser from the transferor of a subsequent sale of the goods by the transferor. A carrier has not received notification within the meaning of thisNotification required. section unless an officer or agent of the carrier, the actual or apparent scope of whose duties includes action upon such a notification, has been notified; and no notification shall be effective until the officer or agent to whom it is given has had time, with the exercise of reasonable diligence, to communicate with the agent or agents having actual possession or control of the goods. Sec. 33. That where an order bill is transferred for value byOrder bills.Indorsement. delivery, and the indorsement of the transferor is essential for negotiation, the transferee acquires a right against the transferor to compel him to indorse the bill, unless a contrary intention appears. The negotiation shall take effect as of the time when the indorsement is actually made. This obligation may be specifically enforced. Sec. 34. That a person who negotiates or transfers for value a billWarrant of transferor. by indorsement or delivery, unless a contrary intention appears, warrants—
(a)That the bill is genuine;
(b)That he has a legal right to transfer it;
(c)That he has knowledge of no fact which would impair the validity or worth of the bill;
(d)That he has a right to transfer the title to the goods, and that the goods are merchantable or fit for a particular purpose whenever 544such warranties would have been implied if the contract of the parties had been to transfer without a bill the goods represented thereby. Sec. 35. Limit of indorser’s liability. That the indorsement of a bill shall not make the indorser liable for any failure on the part of the carrier or previous indorsers of the bill to fulfill their respective obligations. Sec. 36. Responsibility of holder of bill for security, etc. That a mortgagee or pledgee or other holder of a bill for security who in good faith demands or receives payment of the debt for which such bill is security, whether from a party to a draft drawn for such debt or from any other person, shall not be deemed by so doing to represent or warrant the genuineness of such bill or the quantity or quality of the goods therein described. Sec. 37. Validity of negotiation by purchaser for value, etc., of bill wrongfully sold. That the validity of the negotiation of a bill is not impaired by the fact that such negotiation was a breach of duty on the part of the person making the negotiation, or by the fact that the owner of the bill was deprived of the possession of the same by fraud, accident, mistake, duress, loss, theft, or conversion, if the person to whom the bill was negotiated, or a person to whom the bill was subsequently negotiated, gave value therefor in good faith, without notice of the breach of duty, or fraud, accident, mistake, duress, loss, theft, or conversion. Sec. 38. Validity of negotiation by purchaser for value, etc., if goods mortgaged, etc. That where a person, having sold, mortgaged, or pledged goods which are in a carrier’s possession and for which an order bill has been issued, or having sold, mortgaged, or pledged the order bill representing such goods, continues in possession of the order bill, the subsequent negotiation thereof by that person under any sale, pledge, or other disposition thereof to any person receiving the same in good faith, for value and without notice of the previous sale, shall have the same effect as if the first purchaser of the goods or bill had expressly authorized the subsequent negotiation. Sec. 39. Purchaser for value, etc., exempt from seller’s liens, etc., on goods. That where an order bill has been issued for goods no seller’s lien or right of stoppage in transitu shall defeat the rights of any purchaser for value in good faith to whom such bill has been negotiated, whether such negotiation be prior or subsequent to the notification to the carrier who issued such bill of the seller’s claim to a lien or right of stoppage in transitu. Nor shall the carrier be obliged to deliver or justified in delivering the goods to an unpaid seller unless such bill is first surrendered for cancellation. Sec. 40. Rights of mortgagees and hen holders. That, except as provided in section thirty-nine, nothing in this Act shall limit the rights and remedies of a mortgagee or hen holder whose mortgage or lien on goods would be valid, apart from this Act, as against one who for value and in good faith purchased from the owner, immediately prior to the time of their delivery to the carrier, the goods which are subject to the mortgage or hen and obtained possession of them. Sec. 41. Punishment for counterfeiting, etc., bills. That any person who, knowingly or with intent to defraud, falsely makes, alters, forges, counterfeits, prints or photographs any bill of lading purporting to represent goods received for shipment among the several States or with foreign nations, or with like intent utters or publishes as true and genuine any such falsely altered, forged, counterfeited, falsely printed or photographed bill of lading, knowing it to be falsely altered, forged, counterfeited, falsely printed or photographed, or aids in making, altering, forging, counterfeiting, printing Issuing false statements.or photographing, or uttering or publishing the same, or issues or aids in issuing or procuring the issue of, or negotiates or transfers for value a bill which contains a false statement as to the receipt of the goods, Violating provisions of this Act.or as to any other matter, or who, with intent to defraud, violates, or fails to comply with, or aids in any violation of, or failure to comply with any provision of this Act, shall be guilty of a misdemeanor, and, upon conviction, shall be punished for each offense by imprisonment not exceeding five years, or by a fine not exceeding $5,000, or both. 545 Sec. 42. First. That in this Act, unless the context of subjectMeaning of words used. matter otherwise requires— “Action” includes counterclaim, set-off, and suit in equity. “Bill” means bill of lading governed by this Act. “Consignee” means the person named in the bill as the person to whom delivery of the goods is to be made. “Consignor” means the person named in the bill as the person from whom the goods have been received for shipment. “Goods” means merchandise or chattels in course of transportation or which have been or are about to be transported. “Holder” of a bill means a person who has both actual possession of such bill and a right of property therein. “Order” means an order by indorsement on the bill. “Person” includes a corporation or partnership, or two or more persons having a joint or common interest. To “purchase” includes to take as mortgagee and to take as pledgee. “State” includes any Territory, District, insular possession, or isthmian possession. Sec. 43. That the provisions of this Act do not apply to bills madePrior bills not affected. and delivered prior to the taking effect thereof. Sec. 44. That the provisions and each part thereof and the sectionsInvalidity of any part, etc., not to affect remainder of Act. and each part thereof of this Act are independent and severable, and the declaring of any provision or part thereof, or provisions or part thereof, or section or part thereof, or sections or part thereof, unconstitutional shall not impair or render unconstitutional any other provision or part thereof or section or part thereof. Sec. 45. That this Act shall take effect and be in force on and afterIn effect January first after passage. the first day of January next after its passage. Approved, August 29, 1916.