September 4, 1914. ______________________________________________________________________________________________________ THE COLLIERY GUARDIAN. 525 CONTRACTS IN TIME OF WAR. The Legal and Technical Committee of the London Chamber of Commerce has had under consideration a number of technical questions in regard to contracts in war time, liability for war risks, contraband of war, pay- ments to foreigners, and various difficulties in connec- tion with import and export trade. The committee have, provisionally and under reserve, given the follow- ing answers to questions submitted to them. These answers are not to be regarded as legal opinions, and are only given to assist traders in coming to conclusions in particular cases, subject, of course, to the obligation to consult their own legal advisers where necessary. The questions so far dealt with, together with the provisional answers, are as follows :— 1. War risks under c.i.f. contracts. Who is liable, buyer or seller? Depends on custom of trade, and what is a reasonable insurance contract in the circumstances. Having regard to the usual form of Lloyds policy, the presumption under ordinary circumstances is in favour of the buyers undertaking the risk. 2. What are the limitations in regard to dealing with the subjects of alien enemies? There must be no such dealings (except by H.M. the King’s licence) except that if enemy subjects are allowed by the Government to remain in the territory of Great Britain, or an ally, ordinary contracts for their daily subsistence and employment are probably permissible and contracts in the ordinary way of business, involving no extensive operations, which might lead to conflicts of national duty, are possibly permissible. 3. Payments due by British firms to alien enemies. What position should be taken by British firms? No such payments whatever should be made during war, except possibly in pursuance of contracts as above indicated. 4. Is the making of contracts with an alien enemy legal? No; except as stated under (2). 5. If contracts have been made during peace with alien enemies, does the supervening of war make the fulfilment of them an illegal act, or does it merely excuse such fulfil- ment? It suspends until peace—except when :— (1) Such suspension would be inconsistent with the object of the contract; (2) The continuance of the contract would militate against public policy (as in the case of insurance of hostile ships and cargoes against capture). In these excepted cases the contract is avoided. In any case performance during war is unlawful if it involves any communication with the enemy. 6. If the right to contract or to fulfil contracts is qualified by war, does such qualification attach only to national enemies domiciled in the enemy country? Or does it extend to all residents, including British who may remain in the enemy country, or enemies residing here? In our opinion it extends to all :—Subject to licences and the indulgence extended to enemies permitted to remain here or in allied territory. (See 2 supra.) 7. We know that war has now been declared against Ger- many, but what effect would that have commercially as regards her ally, Austria-Hungary, whilst the latter country and this were still nominally at peace? None : But imminence of war may justify a refusal to put property at risk. 8. Can the attorney of an alien enemy sue to enforce pay- ment in the Courts during the war, and in point of time what difference does the formal declaration of war make? We think not. 9. In the case that foreign bills held by, and payable to, the alien enemy are presented through a bank or other agent here in respect of a contract legally entered into before a state of war : Is it the duty of British debtors to pay any bills, and does it make any difference if the presenter is only (a) agent for collecting, or (6) assignee? (a) It is the duty of the debtor to withhold payment even, we think to British agents. (See 8 supra.) (b) Generally in the case of bills validly assigned before the outbreak of war to a person permitted to trade in the United Kingdom, such holder would appear to be entitled to enforce payment. 10. What is the position of a firm having ordered goods from Belgium and Germany, who in turn have made con- tracts to deliver in this country? Is it permissible or pos- sible to cancel all orders executed partly or wholly on the ground that delivery is impossible from the Continent? The second contracts (to deliver in this country) are quite independent of the first-mentioned, and stand, unless they can only be performed by trading with the enemy. 11. Does a state of war necessarily cancel all contracts over affected areas to which communication is impossible? See (6 supra) as to enemy territory. The same applies to territory occupied by the enemy. Mere physical difficulty of communication will bring the contracts under the principle of the “ Coronation ” cases (impos- sibility of performance). 12. What is the position of British firms having contracts with Austrian firms for the supply of British goods. Can they consider contracts void and dispose of the goods in question to other non-belligerent powers? See answer to question 5. 13. What is the position of an American firm located in London having contracts to purchase German goods through a German house established in Manchester. Are contracts void? We think that as German firms cannot trade in the United Kingdom without a licence, the question can hardly arise, but if it does, such contracts are unen- forceable in this country. 14. What is the position of British owners of goods sent oversea to the Continent in enemy vessels meeting with an enemy cruiser? Such goods are subject to enemy capture, or destruc- tion without compensation. 15. What is the position of the British owner of goods sent from oversea to the Continent falling in with British or Allied vessels? Goods will be released on proof of British ownership. They are subject to destruction with the ship (if destroyed) without compensation. 16. Do “ all risks ” insurance policies include war risks? Not in general commercial contracts. 17. A merchant having sold goods on a c.i.f. contract to a London dealer for shipment to a German port, ships them in a German bottom before declaration of war, and forwards the usual documents current in the trade. Can the London dealer refuse to accept the tender on the ground that it would be impossible to obtain delivery without trafficking with the enemy, and that therefor the contract is void? . London dealer cannot refuse to accept documents. 18. Is it imperative for British buyers of goods from German agents or merchants in London, in cases where the partners comprise both “ alien enemies ” and Englishmen, to refuse payments for such goods? No. Partnerships in such cases are automatically dis- solved upon the outbreak of war; the remaining English partner or partners may receive and make payments and carry on the business. 19. Is it lawful to have commercial dealings with Germans residing out of Germany in friendly countries? On the whole we consider that all dealings with enemy subjects anywhere are unlawful, except under express or tacit licence of the Crown. It is understood that contracts entered into before the war with such firms, against cash in British banks, may be fulfilled. 20. In the case of goods sold on the usual trade contract on cost and freight terms, shipped in July from Colombo to New York on German ship, documents for tender to buyer on August 4. Buyer returned documents on the 13th with the remarks that the same was a “ bad tender on the con- tract under existing circumstances.” What is the position of the shippers in view of the shipment having been made in German steamers prior to the outbreak of hostilities? Buyer cannot refuse documents; see answer to question 17. 21. What is the best course to suggest to British firms who own cargoes, on German vessels, which may put into a neutral harbour and stay in order that the owners of the cargo may themselves protect their interests? The only course is to ask a local lawyer to advise as to the possibility of dealing with the cargo, as much depends upon foreign laws. ________________________ STANDARD GAUGE FOR IRON AND STEEL SHEETS AND HOOPS. The Metal Trades Section of the London Chamber of Com- merce announces that, owing to confusion having arisen between “ B.W.G.” and “ B.G.” in specifications for iron and steel sheets and hoops, negotiations between the Chamber and the Standards Department of the Board of Trade were opened in 1912, when the former suggested the legalisation by Order in Council of “ B.G.” as the official gauge for iron and steel sheets and hoops. The Board of Trade were approached in the first place by deputation, and reasons were given that it would be desirable to certify “B.G.” as the official gauge for iron and steel sheets and hoops. It was pointed out that claims were sometimes made, in many cases leading to litigation, owing to the lack of an officially certified gauge. These representations were sympathetically received, and in due course the Metal Trades Section of the London Chamber of Commerce and most of the firms and companies engaged in the manufacture, sale, and distribution of sheets and hoops made formal application for the legalisa- tion by Order in Council of certain denominations of “ B.G.” gauges. Notices were advertised by the Board of Trade that the application had been made, and that objections would be received, but as no objections were forthcoming the Chamber was notified that a condition precedent to the issue of the Order in Council would be the manufacture of a standard set of gauges for verification for the officers of the Board of Trade. This condition was complied with, and the Order in Council was made on July 16, to take effect as from November 1, 1914. In view of the official recognition of “ B.G.,” it is to be hoped all buyers and sellers of iron and steel sheets and hoops will discontinue to specify or use the ambiguous denomination “ B.W.G.,” which being variously interpreted as “ Old B.W.G.,” “ Stubbs’ B.W.G.,” and “ Rose’s B.W.G.,” has been a frequent source of trouble. The schedule of the denominations as attached to the Order is as follows :— SCHEDULE. Denominations of Standards. (Birmingham Gauge. Descriptive number. Equivalents in parts of an inch. Descriptive number. Equivalents in parts of an inch. No. In. No. In. 15/0 B.G. ... i-ooo . 26 B.G. 0’0392 14/0 B.G; ... ' 0-9583 .. . 21 B.G. 0-0349 13/0 B.G. .... 0-9167 .. . 22 B.G. 0-03126 12/0 B.G. 0’8750 . 23 B.G. 0-02782 11/0 B.G. ... 0-8333 .. . 24 B.G. 0-02476 10/0 B.G. ... 0-7917 .. 25 B.G. 0’02204 9/0 B.G. ... 0-750 . 26 B.G. 0’01961 8/0 B.G. ... 0-7083 .. . 27 B.G. 0-01745 7/0 B.G. ... 0’6666 .. . 28 B.G. 0-015625 6/0 B.G. ... 0-625 . 29 B.G. 0-0139 5/0 B.G. ... 0-5883 .. . 30 B.G. 0-0123 4/0 B.G. ... 0-5416 . 31 B.G. 0-0110 3/0 B.G. ... 0’500 . 32 B.G. 0’0098 2/0 B.G. ... 0’4452 . 33 B.G. 0-0087 1/0 B.G. ... 0-3964 .. . 34 B.G. O-OO77 1 B.G. ... 0-3532 .. 35 B.G. 0-0069 2 B.G. ... 0-3147 .. . 36 B.G. 0-0061 3 B.G. ... 0-2804 .. . 37 B.G. 0-0054 4 B.G. ... 0-250 . 38 B.G. 0-0048 5 B.G. 0-2225 . 39 B.G. 0-0043 6 B.G. ... 0-1981 . 40 B.G 0-00386 7 B.G. ... 0-1764 .. . 41 B.G. 0-00343 8 B.G. ... 0-1570 ... . 42 B.G. 0-0031 6 9 B.G. ... 0-1398 ... . 43 B.G. 0-00272 10 B.G. ... 0-1250 .. . 44 B.G. 0-00242 11 B.G. ... 0-1113 ... . 45 B.G. 0-00215 12 B.G. ... 0-0991 ... 46 B.G. 000192 13 B.G. ... 0-6882 47 B.G. 0-00170 14 B.G. 0-0785 , 48 B.G. 0-00152 15 B.G. ... 0-0699 ... 49 B.G. 0-00135 16 B.G. 0-0625 50 B.G. 0-00120 17 B.G. 0*0556 51 B.G. 0-00107 18 B.G. ... 0-0495 . 52 B.G. 0-00095 19 B.G. 0’0440 _____________________________ The War Risks Insurance Committee have reduced the rate for cargo insurances to 2 guineas per cent, in lieu of 3 guineas. INDIAN AND COLONIAL NOTES. ________________________________________________________ India. Trade of British India in 1913.—Tables have been issued by the India Office relating to the trade of British India with British possessions and foreign countries in the years 1908-9 to 1912-13. In these years the value of coal, coke, and patent fuel imported from ports in the British Empire and foreign countries have been as follows :— From British From foreign Year. Empire. countries. £ £ 1908-09 531,274 17,044 1909-10 469,037 15,027 1910-11 363,670 17,745 1911-12 292,685 49,276 ‘ 1912-13 536^270 ... 241,075 Similar tables, details in regard to exports of Indian coal, are also given :— To British To foreign Year. Empire. countries. £ 1908-09 .. 282,424 54,319 1909-10 .. 395,950 51,640 1910-11 .. 435,304 78,084 1911-12 .... 442,403 71,553 1912-13 .. 488,273 ... 100,993 The quantities of coal, coke, and patent fuel imported and exported are shown below :— 1908-09. 1909-10. 1910-11. 1911-12. 1912-13. Imports— Tons. Tons. 'ions. Tons. Tons. Coal............ 435,399... 406,378... 322,647... 285,74 8.. 643,202 Coke ........... 17,448... 13,650... 7,38k .. 7,094... 5,206 Patent fuel .... 2,959... 8,507... 4,146... 5,070... 5,286 Exports— Coal ............ 569,926...756,994...888,073...872,603...879,739 Coke............ 1,656... 1,834.. 1,528... 1,384... 1,500 The countries of origin in the case of imports are shown in the following table :— 1908-09. 1909-10. 1910-11. 1911-12. 1912-13. Coal— Tons. Tons. Tons. Tons. Tons. United Kingdom 199,741...279,391...246,713...179,763...157,852 Germany ...... — ... — ... — ... 1,465... 4,558 Holland ........ — ... — ... — ... 22,738... 41,856 E. African Prot. — ... 6,208... — ... — ... — Natal .......... 70,354... 78,569... 15,854... 25,479 . 112,825 Port. E. Africa... 10,140... 6,461... 177... 5,373... 50,259 Transvaal ...... — ... — ... — ... — ... 55,734 China Treaty ports ........ — ... — ... 500... 200... 12,250 Japan .......... 5,950... 5,523... 13,629... 14,092... 107,233 Australia .... . 145,796... 27,189... 44,505... 35,718... 95,596 Other countries.. 3,418... 3,037... 1,269... 920... 5,039 Coke— United Kingdom 17,333... 13,620... 7,388... 6,432... 4,654 Other countries.. 115... 30... — ... 662... 552 Patent fuel— United Kingdom 2,950... 8,498... 4,140... 5,063... 5,286 Other countries.. 9.. 9... 6... 7... — The exports of Indian coal are also shown:— 1908-09. 1909-10. 1910-11. 1911-12. 1912-13. To Tons. Tons. Tons. Tons. Tons. Egypt............. — ... — ... — ... — ... 18,461 Aden ............. 11,224... 3,460... 7,383... 12,335... 11,109 Ceylon ........... 354,355...370,570...511,848...532,980...543,115 Java ............. 13,607... 7,420... 18,696... 4,113... — Straits Settle- ments........... 107,615... 173,214... 223,320... 197,553... 154,491 Sumatra ........ 79,264 .. 78,883...111,694...110,049...130,139 Australia........ — ...121,096... — ... — ... — Other countries... 3,861... 2,351... 15,132... 15,573... 21,624 In 1912-13 there were imported 8,163,044 lb. of alizarine dyes, valued at .£237,670; 10,082,0981b. of aniline dyes, valued at £522,176; and 63,5881b. of other coal tar dyes, valued at £5,558. It is worthy of note that in 1912-13, 5,948,770 lb. of alizarine dyes, valued at £173,586 came from Germany, as against 1,397,545 1b., valued at £32,280, from the United Kingdom, and 809,1891b., valued at £31,357, from Belgium. As regards aniline dyes, 8,000,0081b., valued at £424,603, came from Germany; 730,222 lb., valued at £35,901, from Belgium; 716,8711b., valued at £31,170, from Switzerland; 463,3801b., valued at £19,071, from Italy; and only 115,919 1b., valued at £8,365, from the United Kingdom. The value of coal mining machinery imported was £15,705, whilst that of all other sorts of mining machinery was £47,170. In 1911-12 the total was £83,791. Of the total in 1912-13, the United Kingdom was responsible for £50,260, and the United States for £10,794. In 1911-12 the latter imported mining machinery to th© value of £40,991. The total imports of all kinds of iron or steel goods was £6,220,098, as compared with £5,352,797 in 1911-12; there were also imported iron goods valued at £335,244 (as against £330,451), and steel goods valued at £1,115,411 (as against £1,033,515); railway plant and roll- ing stock to the value of £4,268,598 (as against £2,957,970). It is a notable fact that India exported in 1912-13, 92,614 tons of native pig iron, valued at £313,792, as compared with 18,601 tons, valued at £60,566, in 1911-12, and 6,801 tons, valued at £22,702, in 1910-11. Most of the pig iron goes to Australia (80,100 tons in 1912-13) and Japan. The value of all iron or steel goods exported reached a value last year of £346,100, as against £80,184 in 1911-12, and £40,687 in 1910-11. In 1912-13, 708,081 tons of manganese ore were exported, valued at £762,698. The following countries were buyers of Indian manganese in 1912-13 :—United Kingdom, £231,668; Belgium, £184,287; France, £128,244; Germany, £9,060; Holland, 27,935; Italy, £7,920; United States, £164,654. ______________________________ The Board of Trade have been informed by telegram by the Panama Railroad Company that, from the opening of the canal on August 15, it will supply Pocahontas and New River coals to steamers at Colon or Cristobal at 5 dols. 15 c. per ton gross delivered in bunkers when alongside piers, and 5 dols. 40 c. per ton gross when when delivered from lighters. The rates at Balboa will be 1 dol. extra. The company will accept payment in cash or by captain’s sight draft on owners’ bankers or representatives in New York. These prices are net, with no commission. The rates are subject to alteration, but the company expects to continue them until the end of this year.