New York Chamber of Commerce.

Annual report of the corporation of the Chamber of Commerce, of the State of New York, for the year .. online

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individual business men the methods and the system and to urge
them to adopt and insert in their contracts this standard arbitra-
tion clause:


All disputed questions of fact that may arise and occasion
controversy relating to this contract shall be submitted to
arbitration, under the rules for the time being of the Com-
mittee on Arbitration of the Chamber of Commerce of the
State of New York. In the event of the failure of the
parties to agree upon arbitrators, the Committee on Arbitra-
tion of the Chamber of Commerce is hereby authorized to

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12 Sixty-First Annual Report — Part I

select three impartial persons from the "Official List" of
arbitrators, with the same force and effect as if their names
were herein inserted. No litigation of any kind or char-
acter shall be instituted until such arbitration shall have
taken place and the arbitrators made their award thereon.

The work is bearing fruit. A foreign government, one of the
Great Powers of Europe, recently placed before your committee
a contract containing a clause binding the parties (one of whom
is a Canadian corporation) to the effect that any dispute that
might arise thereunder shall be submitted to arbitration under
the auspices of this Chamber of Commerce and its rules. Thus
this standard clause or its equivalent is finding its way more
and more into contracts, and while the committee has no definite
data available upon which to make an estimate of the extent to
which the practice has developed, the occasional references to us
indicate a very widespread acceptance of this method of dispos-
ing of controversy.

The time will doubtless come when those of our governmental
departments who are now large buyers of merchandise will ac-
cept such a standard clause in their contracts with sellers, thereby
increasing the amount of bidding and reducing the cost to the

There still remains for us, however, the embarrassment aris-
ing from the present status of American law upon this subject.
In previous reports, your committee has pointed out how, dating
from an archaic precedent, the Federal Courts and the State
Courts have both held that an agreement to arbitrate a con-
troversy is revocable. This question, however, is now being
raised anew in litigation pending both in the Federal and State
Courts. Your committee was asked to intervene in these cases
as amicus curiae, that is, as "friend of the court," and it asked
Mr. Julius Henry Cohen to prepare for such intervention.
Mr. Cohen has devoted much care to the gathering of prece-
dents upon the subject and to the bringing together of informa-
tion concerning arbitration generally. Arrangements have been
made for the publication by D. Appleton & Co. of the result of
his research in book form, under the title of "Commercial Arbitra-
tion and the Law." This book will be used as the basis. for a brief
in the case in which we are intervening, but besides will be a sub-
stantial contribution to the whole subject. Your committee is hope-
ful that it will be convincing to the courts to the end that the
archaic rule may pass away finally and completely, or be so mod-
ified as to make practicable the extended scope of commercial
arbitration. What can be more inconsistent with business
morals than to permit a business man to take all the advantages
of an agreement into which he has solemnly entered and to re-
ject the provision imposing upon him the burden of submitting

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Proceedings of the Chamber of Commerce — May 2, 1918 13

to a trade tribunal the decision of the merits of controversy
arising under his contract? Yet the present state of the law
permits the dishonest merchant to go so far as to appear before
the arbitrator, and, upon discovering that the arbitrator is likely
to decide against him, even then to withdraw from the submis-
sion. This condition of affairs is not consistent with sound pub-
lic policy and must be changed.

The service of your committee, and through it, of the
Chamber, is recognized and accepted. It meets with general
approval. In the case of actual controversy, either through
arbitration, mediation or conciliation, the service is quick, eco-
nomical, non-irritant, careful and painstaking in the judgments
made, and produces results entirely satisfactory to the mer-
chant's sense of commercial equity.

Many questions are put to the committee during the course
of the year which do not involve actual arbitration. These ques-
tions it answers broadly, covering some times a more comprehens-
ive field than would be required for a mere answer confined
to the question propounded. This policy it pursues because,
after all, the work of the committee, like that of the teacher, is to
widen the mental horizon and to develop correct habits.

Nor must it be assumed that the cases or problems presented
to the committee can be disposed of at once. They very often
require patient and persistent attention. One foreign case took
two and a half years before results were obtained, and there
are now pending foreign cases in which the committee has been
active for periods of not less than twelve months. The process
of mediation by correspondence is slow, but more effective and
much quicker than litigation.

Again, your committee would emphasize the growing recogni-
tion by the legal profession of the Chamber's helpfulness. A
very substantial percentage of the cases that reach it are brought
by attorneys, who, mindful of their duty to dispose of their
clients' business with economy and dispatch, are ready to recom-
mend this method. The assistance of the New York State Bar
Association, whose plans have been heretofore reported upon in
detail, has been very helpful in this regard.

The press, also, reflects the public's interest in commercial
arbitration and has been most hospitable in its columns to any
news concerning the work of your committee.

Whatever the opportunity may have been to urge and present
the advantages of arbitration, whether in a street car crisis or a
coal strike, in a legislative chamber, before a constitutional or
political convention, before the courts, or in dealings with asso-
ciations of business or professional men or with private individ-
uals, your committee, it believes, has never shirked its duty. Its
intention has always been to leave no stone unturned to further
the cause of arbitration, to make it respected, and to increase its

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14 Sixty-First Annual Report — Part I

Since the presentation of your committee's last annual report,
we have dealt with such subjects as French costimies, beans, gold
watches, cheese, explosives, furs, machinery, dye-stuffs, bicycles,
hosiery, rabbit skins, leather, rice, yachts. United States flag ma-
terial, trade-marks, automobiles, building operations, exchange
rate, textiles, demurrage, commissions, interpretation of F. O. B.
and C. I. F., and the countries over which our controversies
have ranged included India, France, Cuba, Holland, Argentina,
Greece, China, Japan, Canada, Egypt, Uruguay and Ecuador.
Your committee tendered its services upon three different occa-
sions to departments of the United States Government, and upon
two occasions to the New York City Government.

This work could not be done without the voluntary and pains-
taking services of the arbitrators, who include not only members
of the Chamber selected from the Official List of Arbitrators, but
also those non-members who have served with great seriousness
of purpose and earnestness of work. Your committee is glad to
record that in every instance these men have risen to the im-
portance of the occasion, have set aside their own business en-
gagements, have divested themselves of all personal and business
bias, and have performed their work bearing in mind only the
rendition of such public service as, through this Chamber, they
could freely give to their fellow merchants, no matter where
those fellow merchants might be doing business. The com-
mittee takes this opportunity to express its great obligation to
all of these gentlemen.

Respectfully submitted,

Charles L. Bernheimer, Chairman
Frank A. Ferris
Victor Koechl


George A. Zabriskie ^ on

Thomas F. ViETOR Arbitration

W. Gerald Hawes
Edward O. Stanley

New York, April 19, 1918

The report was adopted unanimously.


Lionel Sutro, Acting Chairman of the Committee on Com-
mercial Education, presented the following report, which was
unanimously adopted :

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Proceedings of the Chamber of Commerce — May 2, 1918 15

To the Chamber of Commerce:

Your Committee on Commercial Education called a conference
to consider the malnutrition of school children, which was held
at the Chamber, March 21st, 1918. Besides the members of your
committee present, there were : Dr. W. S. Small, of the United
States Bureau of Education; Dr. Wm. A. Howe, of the New
York State Department of Education, and State Medical Ex-
aminer of Schools ; Dr. Gustave Straubenmuller, Acting Su-
perintendent of Schools of New York City ; Mrs. Henrietta W.
Calvin, Specialist in Home Economics, United States Bureau of
Education; Dr. S. Josephine Baker, Director of the Bureau of
Child Hygiene and representing the Commissioner of Health of
New York City ; Miss Grace Schermerhorn, Director of Cook-
ing in the Public Schools of New York City; Dr. L. Emmett
Holt, of the New York Academy of Medicine ; Mr. Bailey B.
Burritt, General Director of the Association for Improving the
Condition of the Poor; Miss Emma Winslow, representing the
Charity Organization Society of New York; Mrs. Frederick
Peterson, of the New York School Luncheon Committee; and
Miss Sally Lucas Jean, representing Mr. Collier, of the
People's Institute.

Dr. Small, of the U. S. Bureau of Education, which is under
the jurisdiction of the Department of the Interior, was not able
to report any conclusive facts on malnutrition and undernourish-
ment. He said, however, the United States Government is now
analyzing figures bearing on this question and a Federal move-
ment is under way towards some effective legislation aimed at
malnutrition and the physical welfare of school children.

Dr. Howe, of the New York State Department of Education,
advised that malnutrition is prevalent throughout New York
State. As the State authorities do not have jurisdiction over
matters of health of school children in cities of the first class, the
State's investigations do not include New York City. The investi-
gations in the territory under State jurisdiction, however, show
that defective nutrition is extensive and that, with few exceptions,
poorly nourished children are backward and often physically

The figures on malnutrition presented by Dr. Howe were
exceptionally small in comparison with those presented to your
committee by the New York City authorities, who practically
admit that 216,000 children of the New York schools, or 21%, are
suffering from undernourishment, and 611,000, or 61%, are below
normal standard of nutrition. It is found that thousands of
children are going to school without any breakfast, except coffee
and bread. These conditions are, furthermore, becoming worse
from year to year.

All those present at the conference were practically agreed that
the remedy for malnutrition was largely education, not only as
regards the children, but also the parents.

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16 Sixty-First Annual Report — Part I

It was also clearly shown by the testimony that poorly nour-
ished children were backward in their studies and exceptionally
slow in mastering their lessons in comparison with well-nourished
children. In other words, malnutrition reacts very disadvantage-
ously upon a child's ability to learn.

To educate the children of New York City, there is being ex-
pended annually around $40,000,000 for salaries and supplies
alone. It is therefore 9bvious that if large numbers of school
children are unable to avail themselves fully of the educational
opportunities offered owing to malnutrition, and if the expendi-
ture of a comparatively few additional dollars can provide an
effective remedy for malnutrition, it is foolish economy not to
make this expenditure at once.

Your committee has found that through the medium of school
lunch rooms the problem of malnutrition can be successfully at-
tacked, and is of the opinion, that a small expenditure for such
facilities brings a large financial return by making the money
spent on normal school activities far more productive than other-
wise is the case.

In New York City a few school lunch rooms have been estab-
lished. The important purpose of these lunch rooms is both to
create in children the habit of eating the right kind of food, and
to educate the mothers in what is proper food and the proper
preparation of food for children. The few existing lunch rooms
are performing their purpose satisfactorily and the Board of
Superintendents of the schools has askecl the Board of Educa-
tion for the sum of $39,000 to establish central kitchens and to
introduce luncheons into twenty additional schools.

Your committee understands it is not the purpose of the school
authorities to provide luncheons free to the children, but to charg^e
a moderate price. It is assumed that in needy cases the charity
organizations will provide ways whereby children financially un-
able to buy luncheons will be cared for. Your committee agrees
with this principle of the luncheon system and does not feel
lunches should be provided by the City authorities without cost
to the children.

As a result of the facts found by your committee, the following
resolutions are offered for adoption :

Resolved, That the Chamber of Commerce of the State of New
York urges upon the Board of Education of New York City the
allowance bf the sum of $39,000 to the Board of Superintendents
for extending the school luncheon system and education of the
children and parents in matters of food, cooking and diet; and
be it

Resolved, That the proper Federal and State authorities be
urged to give serious consideration to malnutrition among school

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Of the

Committee on



Proceedings of the Chamber of Commerce — May -?, 1918 17

children and to take, so far as their jurisdiction extends, such
measures as have been found practical in alleviating and correct-
ing this condition ; and be it further

Resolved, That copies of these resolutions be sent to the Fed-
eral, State and City authorities who have this subject under their

Howard C. Smith, Chairman
Julio F. Sorzano


Alexander C. Humphreys
Lionel Sutro
William W. Hergy

New York, April 26, 1918


Frank K. Sturgis, Chairman of the Nominating Committee,
in presenting the report of the Committee, said:

Mr. President and Members gf the Chamber. — On behalf
of the Committee on Nominations I have the honor to offer their
report :

The Committee on Nominations of the Chamber of Com-
merce, in submitting their report, take the opportunity to pay
a tribute of deep appreciation, high praise and warm commenda-
tion to Mr. OuTERBRiDGE upon the great service which he has
rendered during the two years that he has filled the position of
President of the Chamber of Commerce. [Applause] Gifted
with an unusual eloquence and a most felicitous power of ex-
pression, Mr. Outerbridge has presided at all the meetings of
the Chamber with rare impressiveness. It may be truly said
of him that during the many occasions when the Chamber has
been called upon to receive distinguished guests the dignity of
his office has been enhanced by his courtesy, discretion and wise

The members of the Chamber owe to Mr. Outerbridge a debt
of gratitude which they will not be able to repay, but they de-
sire to convey to him in the fullest degree their appreciation
and their thanks for what he has done.

They desire further to extend to him upon his retirement from
his official position their best personal wishes, combined with

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18 Sixty-First Annual Report— Part I

the earnest hope that he may long continue to meet with them,
share their responsibilities and aid their efforts in continuing
to conduct the policies and labors of the Qiamber, so wisely
defined by his example and advice. [Applause]

Mr. Sturgis then presented the following ballot :


[Election for one year unless otherwise stated]

For President— Alfred E. Marling
For Vice-Presidents

To serve until May, 1922

J. PiERPONT Morgan George F. Bakes

Frank Trumbull

For Treasurer — William H. Porter

For Secretary — Charles T. Gwynne

For Chairman of Executive Committee

Welding Ring

For Chairman of Committee on Finance and Currency

Frank A. Vanderlip

For Members of Committee on Finance and Currency
To serve until May, 1921

Theodore E. Burton Thomas W. Lamont

For Chairman of Committee on Foreign Commerce and the Revenue Laws
Henry A. Caesar

For Members of Committee on Foreign Commerce and the Revenue Lavus
To serve until May, 1921

Alfred C. Bedford George F. Trowbridge

For Chairman of Committee on Internal Trade and Improvements

Samuel W. Fairchild

For Members of Committee on Internal Trade and Improvements
To serve until May, 1921

Francis H. Stsson William McCarroll

To serve until May, 1920, in place of Charles E. Peck, resigned
Delos W. Cooke

For Chairman of Committee on the Harbor and Shipping
Irving T. Bush

For Members of Committee on the Harbor and Shipping
To serve until May, 1921

T. Ashley Sparks Joseph T. Lilly

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Proceedings of the Chamber of Commerce — May 2, 1918 19

For Chairman of Committee on Insurance
Darwin P. Kingsley

For Members of Committee on Insurance
To serve until May, 1921

Sewasd Prosser Wilson S. Kinnear

For Chairman of Committee on State and Municipal Taxation

Leonqr F. Loree

For Members of Committee on State and Municipal Taxation
To serve until May, 1921

Clarence H. Kelsey Bertram H. Fancher

To serve until May, 1919, in place of Lsoiros F. Loszb
Charles D. Hilles

For Chairman of Committee on Arbitration
Charles L. Bernheimer

For Members of Committee on Arbitration
To serve until May, 1921

William H. Douglas Frederick Coykendall

For Chairman of Committee on Commercial Education
Howard C. Smith

For Members of Committee on Commercial Education
To serve until May, 1921

Edmund Dwight Charles F. MacLean

For Members of Board of Trustees having charge of the Real Estate of

the Chamber of Commerce

To serve until May, 1921

Jacob H. Schiff A. Barton Hepburn

For Commissioner for Licensing Sailors' Hotels or Boarding Houses
Eben E. Olcott

Frank K. Sturgis, Chairman
Cornelius N. Bliss
Joseph H. Emery,
Joseph P. Grace
Gates W. McGarrah
John I. Waterbury
William G. Willcox

Mr. Sturgis. — Mr. President, I have the honor to move that
the report be accepted, the recommendations adopted and that
the Chamber proceed to ballot.


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20 Sixty-First Annual Report — Part I

On motion the report was accepted and Robert Olyphant
and William Fellowes Morgan were appointed tellers and
proceeded to take up the ballots.


Frederick H. Hurdman, on behalf of the Committee ap-
pointed to audit the accounts of the Treasurer, reported that
the Conmiittee had examined the accounts for the past year and
found them correct.

The report was ordered received and filed.


W. Gerald Hawes, on behalf of the delegates appointed to
represent the Chamber at the Fifth National Foreign Trade
Convention, submitted the following report:

To the Chamber of Commerce:

At the meeting of the Chamber on March 7th, President
OuTERBRiDGE announced the appointment of Welding Ring,
Henry A. Caesar, W. Gerald Hawes, and the Secretary, to
represent the Chamber at the Fifth National Foreign Trade
Convention, to be held in Cincinnati, April 18, 19 and 20.

As it was found impossible for several of the delegates to at-
tend the convention, Mr. Outerbridge later appointed W. Tyrie
Stevens, who did attend with the Secretary.

The Convention was largely attended, about eight hundred
being present, and a great deal of interest was displayed. The
theme of the Convention was "The Part of Foreign Trade in
Winning the War."

Mr. James A. Farrell, President of the National Foreign
Trade Council, and a Vice-President of this Chamber, presided.
Several general sessions were held, but the greater part of the
work of the Convention was done through the medium of group
sessions. These sessions covered various topics, such as bank-
ing facilities, initiatory problems in foreign trade, commercial
education in foreign trade, cooperation in foreign trade, foreign
credits, etc. Papers covering these topics were read, and op-
portunity was given for questions and answers on the different
phases of the subjects discussed.

Considerable attention was paid to the Webb bill, which had
just become a law and which permits of certain cooperation and
combination of firms in the foreign trade.

Manufacturers from all parts of the country told what was

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Proceedings of the Chamber of Commerce — May 2, 1918 21

being done in the line of war work in their particular localities,
and a general spirit of cooperation and determination to win the
war was manifested.

The delegates from the Chamber take pleasure in reporting
that many expressions were heard of the high regard and
esteem in which this body is held. Mr. Stevens was elected
an honorary vice-president of the G)nvention, and he also served
as one of the trade advisers. The Secretary was appointed a
member of the Advisory Committee and he also served as Sec-
retary of one of the important group sessions.

Your delegates desire to express their appreciation of the
honor conferred upon them in representing this Chamber.

Respectfully yours,

Welding Ring
Henry A. Caesar
W. Gerald Hawes
W. Tyrie Stevens
Charles T. Gwynne

New York, April fS9, 1918.

The report was ordered received and filed.


The President announced that the following members had
been appointed to represent the Chamber at the annual meet-
ing of the American Academy of Political and Social Science,
held in Philadelphia, April 26-27th: T. DeWitt Cuyler, Eff-
ingham B. Morris and Henry Tatnall.


The President. — Gentlemen, while the tellers are counting
the ballots I am going to ask your indulgence as a matter of
personal privilege to say just a word to you. It is very diffi-
cult for me to find words to respond to that very graceful
and beautiful tribute that the Chairman of the Nominating
Committee tendered to me and which you so heartily applauded.

But the sentiment, or rather the way in which you received

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22 Sixty-First Annual Report — Part I

his remarks is really the theme upon which I wish to say just
a few words.

Two years ago, when you conferred on me the signal honor
of electing me President of this organization, as you remem-
ber, practically all of Europe was then at war. The very prin-
ciples of liberty and freedom for which our forefathers had
fought were then clearly at stake once more, and I think it was
foreshadowed at that time to most people, that we of this
country were likely to be stirred to the point where we should feel
that we, too, must join in that great battle for the preservation of
civilization. During these two years, as you well know, there
have been many momentous events and occasions and oppor-
tunities in which we of this Chamber have been enabled to par-
ticipate, in the discussion and the formulation of many im-
portant policies and questions which arose affecting trade and
commerce because of the war, and also some of those historic
occasions in which we were able to participate when the founda-
tions were being laid for stronger and in some cases new ties
among our several allies. Whatever measure of success may
have come to me, because I happened to occupy this office at
that time, I can assure you has been entirely due to the remark-
able sympathy, confidence and support which have been given
to me by you yourselves and by the chairmen and members of

Online LibraryNew York Chamber of CommerceAnnual report of the corporation of the Chamber of Commerce, of the State of New York, for the year .. → online text (page 5 of 75)