File No. 300.115/1788

Armour and Company to the Secretary of State1

SUMMARY OF FACTS

Neutrals: Ships (cargoes conditional contraband), consignors and consignees all neutrals.

Ships: Fourteen ships all sailing under the Norwegian flag have as major portion of cargo meat-food products (very largely oleo oils and lards).

Shippers and ports: Armour and Company, Swift and Company, Morris and Company, Sulzberger and Sons Company, and Cudahy [Page 350] Packing Company of the United States. All shipped to Scandinavian ports, principally Copenhagen, between October 8 and November 19, 1914.

Manner of shipment: Bulk of these shipments are: “to order notify.” In the case of Armour and Company most of shipments are to order of Armour and Company, Copenhagen, notify.” Armour and Company is incorporated in Denmark under the laws of that country under the name of Armour and Company A/S.

Value of cargoes: Estimated at from $10,000,000 to $12,000,000.

Grievance: The British Government has detained overseas five of the vessels, three of which, the Alfred Nobel , Björnstjerne Björnson , and the Fridland cleared from the port of New York at dates all prior to October 29, upon which date England issued its proclamation governing “to-order” shipments. These ships have been detained, some of them as far back as November 5. The products thereon are perishable and fast deteriorating. The two other ships detained, Strinda and the Kim. The packers aforementioned received the proclamation of England of October 29 on or about the 20th of November and have not since that time made any “to-order” shipments; in fact, all shipments of meat-food products to Norway, Sweden and Denmark have ceased, for the reason set out in the next following paragraph.

To-order shipment: Is a long-standing commercial practice, the purpose being to collect at destination in foreign countries the value of the shipment before bill of lading is delivered to the purchaser, upon which bill of lading steamship companies deliver the goods. To cut off to-order shipments with any country is to kill the trade, for the reason that credits will not be extended and cannot safely be extended to many foreign-party purchasers. To-order shipment has always been recognized in British commerce and was recognized by the British Government as recently as its proclamations of August 4 and August 20 last.

Volume of business: The annual business of the packers with the Scandinavian countries named aggregates approximately $75,000 000.

Alfred R. Urion

[Enclosure]

Memorandum of facts submitted by Armour and Company of Chicago concerning cargoes of meat-food products to Copenhagen in vessels sailing under the Norwegian flag, detained and held by the British Government

Following the suggestions in the public press said to have been based on the spoken attitude of the officials of our Government calling attention of the commercial interests of the United States to the great opportunities to extend our foreign trade brought about by the great conflict raging between foreign nations, we as large packers of cattle and hog products for food purposes have sought to extend the exportation of the products save fresh meats, but mare largely lard and cured hog-meats, to the neutral countries, until at the present time we have on the high seas or detained at English ports by the British Government in neutral ships consigned to neutral countries a large amount of these products all shipped in manner and form within international law, 600 carloads, aggregating in value approximately $2,000,000.

As we probably represent only from one fourth to one third of the export business in these products, it is fair and reasonable to state the aggregate value of such products now on the high seas and detained as aforesaid, all [Page 351] shipped within a month or six weeks, to be of from $6,000,000 to $8,000,000; that of this amount probably $2,000,000 worth is detained by the British Government, some of it for as long as two weeks, and the shortest for more than one week, for reasons not yet disclosed.

The prospective export business in these products to neutral countries based on the foregoing figures, will aggregate upwards of $75,000,000 annually and is in jeopardy because of the long detentions aforesaid and fear of seizures, the loss of which export business, if it occurs, and must occur unless there is speedy relief from the present unreasonable and unjust hindrances, will fall not only most heavily on us as packers, but in a measure must also fall on the farmer and livestock grower who produces the hogs and livestock from which the products are manufactured.

We have continued to solicit orders, make sales to the same parties in Denmark, Norway, and Sweden and ship in the same way as for many years past, and, as stated, some of the ships carrying the products have been detained to such an extent that we are compelled to forego further efforts to extend the exportation of these products to neutral countries until the detained shipments are released and the future made clear as to whether shipments to neutral countries can be made without undue and unreasonable detentions and hindrances. The following facts touching three different shipments best illustrate the difficulties:

We shipped to Copenhagen, Denmark, on S. S. Alfred Nobel of the Gans Line sailing from New York, October 20, 1914, 75 carloads of meat products, mostly lard, valued at $200,000. The Nobel was detained by the British on or about November 5 last and taken to the Shetland Islands, and later on, or about November 14, as we are informed, taken to Liverpool. This ship has therefore been detained about two weeks and no reason yet given therefor, nor is any information as to reason for so long a detention obtainable by our Department of State notwithstanding its efforts in this respect.

The S. S. Björnstjerne Björnson sailing from New York October 27 last and the S. S. Fridland sailing from the same port October 28 last, containing 84 and 53 cars respectively of our meat-food products, mostly lard, for Copenhagen, valued at about $400,000, have likewise been detained at English ports, for reasons likewise unknown, and not yet obtainable.

The shipments were consigned to “order Armour and Company notify,” as has always been the custom of Armour and Company, so that goods will not be delivered at destination without surrender of bill of lading after payment of draft or other arrangement made for payment. The plan of consignment “to order” is a credit matter wholly, a commercial practice of long standing, and has no bearing whatever on anything else. The objection of Great Britain to consigning “to order” was made after these three shipments had cleared from New York, and can have no effect thereon.

Other packers have large shipments of the same kind of meat-food products on the three ships named, going to the same neutral countries; and thus taken together meat-food products make up the greater part of the cargoes of such detained ships, all of which ships fly the Norwegian flag, and carry cargoes consigned from one neutral country to another neutral country.

We call attention to the fact that shipments of our same products to same neutral ports, consigned “to order,” all in exactly the same way as in the three detained ships, left New York both before and since the sailing from New York of the three detained ships, have reached destination and the goods delivered to purchasers in the usual and customary manner: e. g., S. S. Frederick VIII left New York October 31, 1914, carrying 44 cars of our meat products, arrived at Copenhagen November 10.

We therefore respectfully ask: (1) That the reason for the detention of the three ships mentioned be ascertained without further delay, and if perchance there has been found contraband on board (which the steamship line denies to us), that it be removed at once, so that the ships may proceed to destination for the delivery of the meat-food products thereon, or that some method be promptly put into effect insuring immediate release and prompt forwarding of the meat-food products thereon to destination, Copenhagen.

(2) That the lawful right to ship meat-food products to Denmark, Norway, and Sweden be determined so that we may know [under] what conditions and restrictions we may safely ship or refrain from making further shipments, which we are willing to do if our Government should so decide, and must do if no effective plan is arranged for future shipments.

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(3) We respectfully suggest that objection be made now and from time to time as necessity may require, against improper and unreasonable proclamations defining conditional contraband and conditions governing same and urge that proclamations be submitted to our Government and if approved, publicity be given to exporters for their information and guidance before becoming effective.

In this connection attention is called to the unusual and extraordinary requirement in paragraph (iv) of Great Britain’s proclamation effective October 29, 1914 (not made known to us until two weeks later and after the three shipments now held by the British Government had sailed from New York for Copenhagen), which requirement is as follows: “In cases covered by the preceding paragraph (iii) it shall lie upon the owners of the goods to prove that their destination was innocent.” All of which we respectfully submit.

Armour and Company
By George B. Robbins
Alfred R. Urion

  1. A copy of this memorandum was handed by the Counselor to the British Ambassador on the morning of December 2.