view of making their recommendations at as early a date as possible, and concluded by stating

"We consider that there is nothing that we can do except to await the decision of the commissioners of the State of New York. We are, however, forwarding to these gentlemen a copy of your letter and of our reply thereto and urging upon them the necessity of prompt action on this vitally important question to the future of the Port of New York and those interested therein."

It is apparent to your committee, and we believe would be admitted by the State Commission, that they are unavoidably much hampered in arriving at their conclusions, and in determining upon definite recommendations by the delay of the city authorities in reaching a decision as to various collateral questions, such as the determination whether there shall be a marginal freight railway or not, and other points touched upon in the report of your committee, at present lying on the table and under discussion with the joint committee of the Board of Estimate.

Your committee is mindful of the fact that it is imperative that prompt decisions as to the policy to be followed in some of these points should be reached in order to facilitate and permit a prompt conclusion of the work undertaken by the State Commission, and important plans promulgated by the Dock Department, but this communication from the War Department again emphasizes the strictly temporary nature of the permission granted for two pier extensions and the certainty of its termination unless the city has shown a definite intention to find other means to provide the necessary piers for the large ships. Until such time as a more comprehensive plan has been agreed upon by all parties in interest which would provide for the growing necessities of the ocean lines for a long time to come, and as the execution of such plans, when adopted, must from their very nature require a considerable time to effect, your committee feels it imperative to call the attention of the Chamber to the opportunity which now exists and which lies entirely within the power of the City Government, to place the Department of Docks in a position to provide at least two piers of sufficient length to accommodate the longest steamers now building.

The Legislature has just passed an Enabling Act empowering the Board of Commissioners of the Sinking Fund of the City to relocate West Washington Market, and when so relocated to set aside and assign to the Department of Docks and Ferries the property on the Hudson River now occupied by that market, and the Commissioner of Docks has stated that this is the only point at which the necessary piers can be promptly provided without interfering with the features of other plans relating to freight collection and distribution, as to which a definite decision has not yet been reached by the city.

Your committee therefore offers the following preamble and resolution:

Whereas, It is of imperative necessity that some piers approximat

ing 1,000 feet in length should be provided as quickly as they can be constructed for the accommodation of steamers now building, and

Whereas, The Commissioners of the Sinking Fund have been empowered by the Legislature to provide the location necessary to permit of at least two such piers being promptly constructed; now, therefore, be it

Resolved, That the Chamber of Commerce of the State of New York urges the Commissioners of the Sinking Fund to act as promptly as possible under the Enabling Act to provide some other convenient location for West Washington Market so as to place the present property under the jurisdiction of the Dock Department, in order that the construction of the two long piers possible at this point may be begun at the earliest possible moment, and that a copy of this report and accompanying preamble and resolutions be sent to the Mayor, the President of the Borough of Manhattan and the Commissioners of the Sinking Fund of the City of New York.

Respectfully submitted,

E. H. OUTERBRIDGE, Chairman,

E. E. OLCOTT,

R. A. C. SMITH,

CHESTER B. LAWRENCE.

Of the Committee on the Harbor and Shipping.

A motion to adopt the report was put and unanimously carried.

COMMERCIAL ARBITRATION.

CHARLES L. BERNHEIMER, Chairman of the Committee on Arbitration, presented the following report, and moved that it be received and placed on file:

To the Chamber of Commerce :

Having been elected in March 1911 and sworn in by Justice VERNON M. DAVIS of the Supreme Court at the June meeting of the Chamber, your Committee on Arbitration begs leave to submit the following report covering its work during the first year of this new method of settling mercantile disputes:

Its activities have necessarily concentrated upon a systematic campaign of publicity, in order that the business men of the city and the country might learn of the scope and purpose of this system of substituting inexpensive, speedy and impartial arbitration for expensive and protracted litigation, in cases of such differences between persons and corporations engaged in business as involve questions of fact rather than of law. Its publicity work has included the following:

1. The publication of a pamphlet containing a description and explanation of the system, the rules and regulations, a handbook for arbitrators, the state law of arbitration and other matter of interest. Copies of this pamphlet have been widely distributed to the 1,500 members of the Chamber, the 2,000 members of the Bar Association and to important organizations in many sections of the world. Applications for copies have been received from a number of the states of this country and even from foreign governments.

2. The attention of leading newspapers and other publications has been directed to the action of the Chamber in establishing this system; and hundreds of commendatory articles and editorials have been printed. Many of the most influential dailies and weeklies, and some of the most prominent monthlies have devoted much space to it. Without exception the action of the Chamber in the establishment of mercantile arbitration has been warmly commended as a step in the right direction.

3. An extensive correspondence has been carried on with the view of making the arbitration system better known and its methods better understood. This correspondence has brought to the committee scores of letters from individuals and organizations all disclosing a keen interest in, and appreciation of, the Chamber's undertaking. The American Consul General in Berlin writes that the project has been given publicity in Germany and as it has excited a considerable interest there, he desires further information.

Very gratifying was the response which came from lawyers in reply to the Chamber's letters transmitting copies of the book of arbitration. These expressions of legal opinion have been in strong approval of the Chamber's plan. A typical letter is the following from Supreme Court Justice HOTCHKISS :

46 SUPREME COURT.

JUDGES CHAMBERS.

NEW YORK, March 5, 1912.

"SERENO S. PRATT, Esq.,

65 Liberty Street,
New York City.

MY DEAR SIR:

"Please accept my thanks for your letter of the twenty-eighth, accompanying which was the Book on Arbitration which I have read with interest. The idea is an excellent one, and ought to be of great practical advantage to merchants having differences depending largely upon questions of fact rather than questions of

law.

Very truly yours,

(Signed) H. D. HOTCHKISS."

As an important result of this publicity a number of leading commercial organizations in various parts of the country have taken up the question of adopting the Chamber's plan of arbitrating mercantile disputes. The National Association of Credit Men has by resolution endorsed commercial arbitration, and is now establishing a system based upon this Chamber's method, and this will possibly necessitate ninety local arbitration committees. The Chamber's Committee has given active assistance to the National Credit Men's Association in this undertaking. Among other organizations which, by letters of inquiry for information, indicate that they are considering the advis ability of establishing systems of commercial arbitration are: The Philadelphia Chamber of Commerce, the Denver Chamber of Commerce, the Binghamton Chamber of Commerce and the Cleveland Chamber of Commerce.

In addition to this necessary work of publicity and preparation, the committee has had the satisfaction of assisting in the settlement of a number of important differences, although in most of these its work was that of conciliation rather than of arbitration. In other words, the committee has been instrumental in bringing contending parties into a state of mind that enabled them to settle their differences without a formal submission to an arbitrator or arbitrators. Twenty-two disputes have been brought to the attention of the committee, fifteen of which have resulted in friendly settlements, "out of court," while seven are still under discussion. One of the cases settled was a difference between two of the biggest houses in the city. After an arbitration had been agreed upon and a time set for a hearing, the two parties were able to settle their dispute privately. It is probable that but for the committee's friendly offices, this case would have resulted in litigation. The disputes thus far settled, or now under consideration involves differences as regards the amount of a lawyer's fees, misunderstandings as to the meaning of a clause in a partnership agreement, the question as to the commission due the New York agent of a mill, the question as to liability for endorsement on a check, and other differences over cotton and silk goods, woolens, freight rates, sugar, wood pulp and other articles of commerce.

The first regular arbitration was held in February, and this case was one of special importance for two reasons: one, that neither of the disputants was a member of the Chamber, and second, one was an English firm. The dispute therefore, was international, and was one that signally illustrated the value of such a system of arbitration as the Chamber has instituted. Mr. LEE KOHNS of the membership of the Chamber served ably as arbitrator, a decision was rendered in about a month and at a cost of less than sixty dollars.

It may be expected that sooner or later our City, State and National Governments will recognize the advantage of arbitrating disputes with those from whom they purchase supplies, or with whom they have other commercial transactions. Supplies furnished to the government may be rejected on technical grounds in instances where it may be impossible to produce goods identically the same as the

sample furnished in the specifications. This tends to make timorous those desiring to submit bids, because of their fear of trouble through a rejection purely technical. This naturally leads to higher prices the government is compelled to pay by decreasing the number of competitive bidders.

After all the work of preparation, your committee feels it may now ask the active co-operation of the members of this Chamber in presenting the opportunities offered by our scheme of arbitration to merchants and corporations, both at home and abroad, who may have. at issue questions of commercial equity or duty, in order that a system so broad, practical, economical and securing prompt settlement in the spirit of fairness and brotherhood, may have increasing calls for its beneficent work.

The report was received with loud applause.

THE PRESIDENT.-The report, which is in the nature of a report of progress, will be received and placed on file. It is extremely gratifying to know that the plan of arbitration is realizing our fondest expectations.

GIFT FROM MRS. MARIA DE WITT JESUP.

THE PRESIDENT.-I am very much pleased to announce, as I am sure you will be to receive the information, that Mrs. MARIA DE WITT JESUP, widow of our former member and President, MORRIS K. JESUP, has donated to the Chamber her $51,500 building fund certificate. The list of these donations is growing rapidly. [Ap plause.]

AUDITING COMMITTEE.

The President announced the appointment of GARDINER D. MATTHEWS and FREDERICK H. HURDMAN as members of a committee to audit the accounts of the Treasurer.

FREE SHIPS.

Welding Ring.-Mr. President, at the last meeting of the Chamber of Commerce, the Committee on Foreign Trade and the Revenue