A bill of lading is an item-ized statement of goods shipped, and a contract to transport them safely and make proper delivery at some stated place. The possession of it gives the purchaser, or the person to whom the goods are shipped, a right to receive them. The person shipping the goods is called the "consignor;" the person receiving the goods is known as the "consignee." The bill of lading is given by the carrier (steamboat company, railroad, etc.) to the person shipping the goods. It is a receipt by the carrier acknowledging the acceptance of goods. It is also a contract between the carrier and shipper stipulating the terms and manner of shipment, and the carrier's responsibility. Thus, we can say that the bill of lading is both a receipt and a contract. There are two kinds of bills of lading: (1) the "straight" bill, where the goods are consigned or sent to a specified person, which is non-negotiable; and (2) the "order" bill, which is negotiable. The latter states that the goods are sent to the order of any person named in the bill as consignee. In the "order" bill indorsement and delivery of the bill are necessary to secure the goods. Such order bills are salable credit instruments and may be transferred. It is a favorite form of collateral for loans from banks. Two copies of the bill of lading (B/L) are usually made. One of these is signed by the shipper and delivered to the carrier and the other is signed by the carrier's agent and delivered to the shipper. Usually the consignor sends his copy of a straight bill of lading to the consignee. When the latter receives it he has something to prove that the goods should be delivered to him.

"Straight" Bill Of Lading - Non-Negotiable

East And West Railroad Company

Straight Bill Of Lading

Original

Not Negotiable Shippers N°.......................................

Agent's No...................

Received, subject to the classifications and tariffs in effect on the date of issue of this Original Bill of Lading, at 192 from.....................................the property described below, in apparent good order, except as noted (contents and condition of contents of packages unknown), marked, consigned and destined as indicated below, which said Company agrees to carry to its usual place of delivery at said destination, if on its road, otherwise to deliver to another carrier on the route to said destination. It is mutually agreed, as to each carrier of all or any of said property over all or any portion of said route to destination, and as to each party at any time interested in all or any of said property, that every service to be performed hereunder shall be subject to all the conditions, whether printed or written, herein contained (including conditions on back hereof) and which are agreed to by the shipper and accepted for himself and his assigns.

The Rate of Freight from...................................................................

to....................................................is in Cents per 100 Lbs.

(Mail Address - Not for Purposes of Delivery)

Consigned to..........................................................................................

Destination ......................................State of..................County of..............

Route ............................................Car Initial.......................Car No.........

If charges are to be prepaid, write or stamp here, "To be Prepaid."

........................................

Received $...............

to apply in prepayment of the charges on the property described hereon.

...............................................

Agent or Cashier Per...................

(The signature here acknowledges only the amount prepaid.)

Charges Advanced: $......................

......................................... Shipper ..........................................Agent

Per.......................................... Per.........................................

(This Bill of Lading is to he signed by the Shipper and Agent of the carrier issuing same.)

Negotiable Bill Of Lading East And West Railroad Company.

Order Bill Of Lading

Original

Shipper's No.________

Agent's No.._________

Received, subject to the classifications and tariffs in effect on the date of issue of this Original Bill of Lading, at 192 from ................................... the property described below, in apparent good order, except as noted (contents and condition of contents of packages unknown), marked, consigned and destined as indicated below, which said Company agrees to carry to its usual place of delivery at said destination, if on its road, otherwise to deliver to another carrier on the route to said destination. It is mutually agreed, as to each carrier of all or any of said property, over all or any portion of said route to destination, and as to each party at any time interested in all or any of said property, that every service to be performed hereunder shall be subject to all the conditions, whether printed or written, herein contained (including conditions on back hereof), and which are agreed to by the shipper and accepted for himself and his assigns.

The surrender of this Original Order bill of Lading properly indorsed shall be required before the delivery of the property. Inspection of property covered by this Bill of Lading will not be permitted unless provided by law or unless permission is indorsed in this original bill of lading or given in writing by the shipper.

The Rate of Freight from...................................................................

to....................................................is in Cents per 100 Lbs.

(Mail Address - Not for Purposes of Delivery)

Consigned to Order Of........................................................................

Destination ......................................State of..................County of..............

Notify ............................................................................................

At ..............................................State of..................County of..............

Route ............................................Car Initial.......................Car No.........

If charges are to be prepaid, write or stamp here, "To be Prepaid."

.............................................

Received $...........

to apply in prepayment of the charges on the property described hereon.

...............................................

Agent or Cashier

Per...................

(The signature here acknowledges only the amount prepaid.)

Charges Advanced: $......................

......................................... Shipper ..........................................Agent

Per......................................... Per..........................................

(This Bill of Lading is to be signed by the Shipper and Agent of the carrier issuing same.)

Agents Must Detach This Slip Before Delivery Of Bill Of Lading To Shipper.

This color and form of Bill of Lading must be used only for shipments consigned to "Order." In way-billing shipments consigned to "Order" a conspicuous notation must appear upon the way-bill reading: "The surrender of the Original Order Bill of Lading, properly indorsed, must be required before the delivery of the property."