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to recover his "kingdom," and occupied his pen in magnifying his achievements, nobody took him seriously except a few of the deluded Indians.

See Domeyko, Araucania y sus habitantes (Santiago, 1846); de Ginoux, Le Chili et les Araucans," in Bull. de la soc. de géogr. (1852); E. R. Smith, Araucanians (New York, 1855); J. T. Medina, Los aborjenes de Chile (Santiago, 1882); A. Polakowsky, Die heutigen Araukanen, Globus No. 74 (Brunswick, 1898).

ARAUCARIA, a genus of coniferous trees included in the tribe Araucarineae. They are magnificent evergreen trees, with apparently whorled branches, and stiff, flattened, pointed leaves, found in Brazil and Chile, Polynesia and Australia. The name of the genus is derived from Arauco, the name of the district in southern Chile where the trees were first discovered. Araucaria imbricata, the Chile pine, or "monkey puzzle," was introduced into Britain in 1796. It is largely cultivated, and usually stands the winter of Britain; but in some years, when the temperature fell very low, the trees have suffered much. Care should be taken in planting to select a spot somewhat elevated and well drained. The tree grows to the height of 150 ft. in the Cordilleras of Chile. The cones are from 8 to 8 in. broad, and 7 to 7 in. long. The wood of the tree is hard and durable. This is the only species which can be cultivated in the open air in Britain. Araucaria brasiliana, the Brazil pine, is a native of the mountains of southern Brazil, and was introduced into Britain in 1819. It is not so hardy as A. imbricata, and requires protection during winter. It is grown in conservatories for half-hardy plants. Araucaria excelsa, the Norfolk Island pine, a native of Norfolk Island and New Caledonia, was discovered during Captain Cook's second voyage, and introduced into Britain by Sir Joseph Banks in 1793. It cannot be grown in the open air in Britain, as it requires protection from frost, and is more tender than the Brazilian pine. It is a majestic tree, sometimes attaining a height of more than 220 ft. The scales of its cones are winged, and have a hook at the apex. Araucaria Cunninghami, the Moreton Bay pine, is a tall tree abundant on the shores of Moreton Bay, Australia, and found through the littoral region of Queensland to Cape York Peninsula, also in New Guinea. It requires protection in England during the winter. Araucaria Bidwilli, the Bunya-Bunya pine, found on the mountains of Southern Queensland, between the rivers Brisbane and Burnett, at 27° S. lat., is a noble tree, attaining a height of 100 to 150 ft., with a straight trunk and white wood. It bears cones as large as a man's head. Its seeds are very large, and are used as food by the natives. Araucaria Rulei, which is a tree of New Caledonia, attains a height of 50 or 60 ft. Araucaria Cookii, also a native of New Caledonia, attains a height of 150 ft. It is found also in the Isle of Pines, and in the New Hebrides. The tree has a remarkable appearance, due to shedding its primary branches for about five-sixths of its height and replacing them by a small bushy growth, the whole resembling a tall column crowned with foliage, suggesting to its discoverer, Captain Cook, a tall column

of basalt.

ARAUCO, a coast province of southern Chile, bounded N., E. and S. by the provinces of Concepción, Bio-bio, Malleco and Cautin. Area, 2458 sq. m.; pop. (est. 1902) 70,635. The province originally covered the once independent Indian territory of Araucania (q.v.), but this was afterwards divided into four provinces. It is devoted largely to agricultural pursuits. The capital Lebú (pop. in 1902, 3178) is situated on the coast about 55 m. south of Concepción, with which it is connected by rail. ARAVALLI HILLS, a range of mountains in India, running for 300 m, in a north-easterly direction, through the Rajputana states and the British district of Ajmere-Merwara, situated between 24° and 27° 10' N. lat., and between 72° and 75° E. long. They consist of a series of ridges and peaks, with a breadth varying from 6 to 60 m. and an elevation of 1000 to 3000 ft., the highest point being Mount Abu, rising to 5653 ft., near the south-western extremity of the range. Geologically they belong to the primitive formation-granite, compact dark blue slate, gneiss and syenite. The dazzling white effect of their peaks is produced, not by snow, as among the Himalayas, but by enormous I

masses of vitreous rose-coloured quartz. On the north their drainage forms the Luni and Sakhi rivers, which fall into the Gulf of Cutch. To the south, their drainage supplies two distinct river systems, one of which debouches in comparatively small streams on the Gulf of Cambay, while the other unites to form the Chambal river, a great southern tributary of the Jumna, flowing thence via the Ganges, into the Bay of Bengal on the other side of India. The Aravalli hills are for the most part bare of cultivation, and even of jungle. Many of them are mere heaps of sand and stone; others consist of huge masses of quartz. The valleys between the ridges are generally sandy deserts, with an occasional oasis of cultivation. At long intervals, however, a fertile tract marks some great natural line of drainage, and among such valleys Ajmere city, with its lake, stands conspicuous. The hills are inhabited by a very sparse population of Mhairs, an aboriginal race. For long these people formed a difficult problem to the British government. Previously to the British occupation of India they had been accustomed to live, almost destitute of clothing, by the produce of their herds, by the chase and by plunder. But Ajmere having been ceded to the East India Company in 1818, the Mhair country was soon afterwards brought under British influence, and the predatory instincts of the people were at the same time controlled and utilized by forming them into a Merwara battalion. As the peaceful results of British rule developed, and the old feuds between the Mhairs and their Rajput neighbours died out, the Mhair battalion was transformed into a police force. The Aravalli mountaineers strongly objected to this change, and pleaded a long period of loyal usefulness to the state. They were accordingly again erected into a military battalion and brought upon the roll of the British army. Under Lord Kitchener's scheme of 1903 they were entitled the 50th Merwara Infantry. The Aravalli hills send off rocky ridges in a north-easterly direction through the states' of Alwar and Jaipur, which from time to time reappear in the form of isolated hills and broken rocky elevations to near Delhi. ARAWAK ("meal-eaters," in reference to cassava, their staple food), a tribe of South American Indians of Dutch and British Guiana. The Arawaks have given their name to a linguistic stock of South America, the Arawakan, which includes many once powerful tribes. The Arawakans were once numerous, their tribes stretching from southern Brazil and Bolivia to Central America, occupying the whole of the West Indies and having settlements on the Florida seaboard. They were found by the Spaniards in Haiti and possibly in the Bahamas, but the Caribs had expelled them from most of the islands. The Arawaks proper were physically an undersized, weakly people, peaceable agriculturists, by far the most civilized of all Guiana peoples, being skilful weavers and workers in stone and gold. The chief tribes which may be called Arawakan are the Anti, Arawak, Barre, Goajiro, Guana, Manaos, Maneteneri, Maipuri, Maranho, Moxo, Passé, Piro and Taruma.

See Everard F, im Thurn, Among the Indians of Guiana (London, 1883).

ARBACES, according to Ctesias (Diodor. ii. 24 ff. 32), one of the generals of Sardanapalus, king of Assyria and founder of the Median empire about 830 B.C. But Ctesias's whole history of the Assyrian and Median empires is absolutely fabulous; his Arbaces and his successors are not historical personages. From the inscriptions of Sargon of Assyria we know one " Arbaku Dynast of Arnashia "as one of forty-five chiefs of Median districts who paid tribute to Sargon in 713 B.C. See MEDIA. (ED. M.)

ARBE (Serbo-Croatian Rab), an island in the Adriatic Sea, forming the northernmost point of Dalmatia, Austria. Pop. (1900) 4441. Arbe is 13 m. long; its greatest breadth is 5 m. The capital, which bears the same name, is a walled town, remarkable, even among the Dalmatian cities, for its beauty. It occupies a steep ridge jutting out from the west coast. At the seaward end of this promontory is the 13thcentury cathedral; behind which the belfries of four churches, at least as ancient, rise in a row along the crest of the ridge; while behind these, again, are the castle and a background of desolate hills. Many of the houses are roofless and untenanted;

for, after five centuries of prosperity under Venetian or Hungarian | converse, are mainly confined to stocks and shares, foreign rule, an outbreak of plague in 1456 swept away the majority of the townsfolk, and ruined the survivors. Some of the old palaces are, nevertheless, of considerable interest; one especially as the birthplace of the celebrated philosopher, Marc Antonio de Dominis. Fishing and agriculture constitute the chief resources of the islanders, whose ancient silk industry is still maintained. In 1018 the yearly tribute due to Venice was fixed at ten pounds of silk or five pounds of gold.

ARBELA (ARBA'IL, i.e. "Four-god-city"), an ancient town in Adiabene, the capital in Assyrian and pre-Assyrian times of the country between the greater and lesser Zab, and seat of an important cult of Ishtar. The battle in which Alexander overthrew Darius in 331 B.C., though named in the old books after Arbela, was probably fought at Gaugamela, some 60 m. away (Yorck von Wartenburg, Kurze Übersicht der Feldzüge A. des Gr.). The modern town of Erbil or Arbil, in the vilayet of Mosul, is about 40 m. from Mosul on the road to Bagdad. The greater part of the town, which seems at one time to have been very large, is situated on an artificial mound about 150 ft. high. It became the seat of the Ayyubite sultan Saladin in 1184; was bequeathed in 1233 to the caliphs of Bagdad; was plundered by the Mongols in 1236 and in 1393 by Timur, and was taken in 1732 by the Persians under Nadir Shah. In the 14th century the Christians were almost exterminated. The population, which varies from 2000 to 6000, is chiefly composed of Kurds.

The ruins of another ARBELA (Irbid, Beth-Arbel) in Palestine, situated near the west shore of the Sea of Galilee, a little north of its centre, are not in themselves of high interest, but the site is noteworthy through its connexion with the neighbouring caves in the lofty flank of the Wadi Hamam, above which Arbela stood. These caves (called by the Arabs Kulat ibn Ma'an) are apparently natural, but were enlarged and fortified. They were used by the inhabitants of Arbela as a place of refuge from the army of Bacchides, general of Demetrius III., king of Syria, and were the resort of bandits in the reign of Herod the Great. He laid siege to them, and his men could only gain access to the caves by being let down from above. The caves were also fortified against the Romans by Josephus.

ARBER, EDWARD (1836- ), English man of letters, was born in London on the 4th of December 1836. From 1854 to 1878 he was a clerk in the admiralty; from 1878 to 1881 lecturer on English, under Prof. H. Morley, at University College; and from 1881 to 1894 professor of English at Mason College, Birmingham. From 1894 he lived in London as emeritus professor, being also a fellow of King's College. In 1905 he received the honorary degree of D. Litt. at Oxford. He married in 1869, and had two sons, one of them, E. A. N. Arber, becoming demonstrator in palaeobotany at Cambridge. As a scholarly editor Professor Arber's services to English literature are memorable. His name is associated particularly with the series of "English Reprints " (1868-1880), by which an accurate text of the works of many English authors, formerly only accessible in rare or expensive editions, was placed within reach of the general public. Among the thirty volumes of the series were Gosson's School of Abuse, Ascham's Toxophilus, Tottel's Miscellany, Naunton's Fragmenta Regalia, &c. It was followed by the "English Scholar's Library" (16 vols.) which included the Works (1884) of Captain John Smith, governor of Virginia, and the Poems (1882) of Richard Barnfield. In his English Garner (8 vols. 1877-1896) he made an admirable collection of rare old tracts and poems; in 1899-1901 he issued British Anthologies (10 vols.), and in 1907 began a series called A Christian Library. He also accomplished single-handed the editing of two vast, and invaluable, English bibliographies: A Transcript of the Registers of the Stationers' Company, 1553-1640 (1875-1894), and The Term Catalogues, 1668-1709; with a number for Easter Term 1711 (1904-1906), edited from the quarterly lists of the book

sellers.

ARBITRAGE, the term applied to the system of equalizing prices in different commercial centres by buying in the cheaper market and selling in the dearer. These transactions, or their

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exchanges and bullion; and are for the most part carried on between London and other European capitals and largely with New York. When prices in London are affected by financial or political causes, all other markets are sooner or later influenced, as London is the banking and financial centre for the commerce of the world. It may, however, also occur that some local event of importance initiates a rise or fall in a particular market which must ultimately affect other countries. For instance, a crisis in France would immediately depress all French securities, and by exciting the fears of capitalists would stimulate transfers of funds and raise all the exchanges against France.

In ordinary times those engaged in arbitrage operate with a very small margin of profit. The great improvement in postal, telegraphic and telephonic communication enables operators to close transactions with amazing rapidity, while competition reduces the margin of profit to a minimum. Operations in American stocks and shares are carried on between London and New York on a vast scale, while transactions in African mining shares are undertaken to a considerable extent between London and Paris. The frequent fluctuations in the prices of the latter securities offer a large and fruitful field to bold operators possessed of large resources, while those who have small means often succumb in a commercial crisis. As regards foreign exchange and bullion, arbitrage operators stand on a fairly safe foundation, the fluctuations being slight and involving little or no risk, although they yield a very small margin of profit. Arbitrage operations are for these reasons resorted to frequently by one country in supplying the requirements of another. The slightest advantage in any market is put to profit, and as the margin in ordinary exchange transactions is minute, the ability to operate in this cross fashion renders business possible, which would otherwise be impracticable. To give concrete instances of the working of arbitrage the following may be cited:

On the 21st of May 1906 the exchange on London in Vienna was telegraphed from that city 24 kronen 4 cents; London, requiring to purchase remittances, found that Antwerp had some Vienna to sell, and arranged to buy there. The transactions worked out as follows:-The direct exchange in Antwerp on London being 25.251, and Antwerp's selling price of Vienna being 105 francs for 100 kronen, on dividing 25.25 by 105 an exchange of 24.05 was obtained or cent cheaper than the direct exchange between Vienna and London.

Again a portion of the proceeds of the Russian loan of 1906 had to be remitted to Berlin from Paris. Having exhausted local balances in Berlin, Paris on one side, and Berlin on the other, sought to prevent gold shipments from Berlin, and thus cause stringency in that money market. On the 21st of May 1906 Berlin was therefore seeking to sell Paris in London at 81-35 marks for 100 francs, and draw on London for the proceeds at 20.50. This transaction produced a parity between the exchanges of 25.20, which left a small margin in London.

Two instances of arbitrage of stocks are the following:On the 24th of March 1906, Japanese exchequer bonds, series 2 and 3, were bought in Tokio at 931 and were paid for by telegraphic transfer at 24 pence per yen, and were sold in London the same day at 94 for payment on arrival of bonds. It took five weeks for the transmission of the bonds to London, where they were dealt in on the fixed basis of exchange, namely 24 pence per yn. The London price works out thus: 93.25 X 24.375. 24.50

2=92.77,

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This sum represents the net cost to the arbitrage house in London, I practice of European nations in general, and has even evaded and the money paid on the 28th of April left a profit of about 1%. The bonds being "to bearer" insurance was necessary for the safety in this, as in all similar transactions.

In the next example, however, this expense was unnecessary, the bonds being" inscribed." On the 21st of May 1906 American Steel common shares were sold for cash in New York at 41 dollars per share, and were bought in London at 42 for the account day, May 31st. These figures are explained by the fact that transactions in the United States stocks and shares are on the fixed basis of five dollars per pound sterling, while as regards payments in New York the exchange varies daily. Railway shares are generally 100 dollars each. In the London market, however, five shares of 100 dollars would be £100 nominal. These shares, therefore, cost in London, at the purchase price of 42, £42: 4: 5. The money realized in New York for five shares at 41 was 205.93 dollars. A cheque on London was bought at 4 dollars 85 cents, realizing £42:8:9. It should be noted that the shares in these cases are generally lent by the New York correspondent, thus saving loss of interest. The resulting profit in this particular instance was 4s. 4d. for each five shares, divided between the London and New York arbitrage firms. Arbitrage operations with distant countries such as India are large and mainly profitable. Arbitrage with India consists chiefly in buying bills of exchange in London, such as India Council rupee bills amounting to about 16 millions sterling annually, and commercial bills drawn against goods exported to India. The counter-operation consists in purchasing in India, for short or long delivery, sterling bills drawn against exports to Great Britain of Indian produce, such as cotton, tea, indigo, jute and wheat. These operations greatly facilitate trade and the moving of produce from the interior of India to the seaports. Without this assistance Great Britain's enormous tradę could not be carried on, and she would have to revert to the primitive system of barter. The same advantages are afforded to her vast trade with China and Japan, with the material difference that the supply of government council bills is confined to the Indian trade. The balance of trade with all countries is generally settled by specie shipments; hence, with the Far East, silver and gold play an important part in arbitrage.

It will thus be seen that arbitrage fills a useful place in commerce; the profits are small because the competition is great; nevertheless huge transactions employing thousands of clerks result from this system.

the dislike of the English common lawyers to the civil law. The praetor, who had the arrangement of all trials or private suits and the formal appointment of judges for them, referred the great majority of such cases for decision to a judge who was styled usually judex but sometimes arbiter. The phrase judex arbiterve frequently occurs.. The judex and the arbiter had the same functions, and apparently the only express basis for the distinction between the two words is that there might be several arbitri but never more than one judex in a cause. The term arbiter seems, however, to have been sometimes used when the referee had a certain degree of latitude, and was entitled to give weight to equitable considerations (Roby, Inst. Rom. Law, i. 318; Hunter, Roman Law (1897), p. 48; and see Cicero pro Rosc. Com, 4, ss. 10-13; Gaius, Inst. iv. s. 163). Apart from this system of compulsory reference by the praetor, Roman law recognized a voluntary reference (compromissum) to an arbiter or arbitrator by the parties themselves. The arbitrator ex compromisso sumptus had no coercive jurisdiction, and in order to make his award effective, the agreement of reference was confirmed by a stipulation and usually provided a penalty (poena, pecunia compromissa) in case of disobedience. The sum agreed on by way of penalty might be either specific or unliquidated, e.g. whatever the matter may be worth" (Dig. iv., tit. 8, s. 28). The arbitrator ex compromisso sumplus, like the judicial arbiter, was expected to take account of equitable considerations in coming to a decision. If three arbitrators were appointed, a majority could decide; în case of two being appointed and not agreeing, the praetor would compel them to choose a third (Roby, ubi sup., i. 320, 321; Dig. iv., tit. 8, s. 17). As in English law, it was necessary that the award should cover all the points submitted (Dig. iv., tit. 8, s. 21).

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Law of England.-The law of England as to arbitration is now practically summed up in the Arbitration Act of 1889. This statute is an express code as to proceedings in all arbitration, but "criminal proceedings by the crown" cannot be referred under it (ss. 13, 14). The statute subdivides its subject-matter into two headings. I. References by consent out of court; II. References under order of court.

court

The literature of the subject is extremely meagre. Lord Goschen's Theory of Foreign Exchanges (London, 1866) is general and theoretical, but throws great light upon particular aspects of the philosophy of arbitrage, without touching specially on the details of the subject itself. The principal other works are: Kelly's Cambist (1811, 1835); Otto Swoboda, Die kaufmannische Arbitrage (Berlin, 1873), and Börse und Actien (Cologne, 1869); Coquelin et Guillaumin, Dictionnaire de l'économie politique (Paris, 1851-1853); Ottomar Haupt, London Arbitrageur (London, 1870); Charles le Touzé, Traité théorique et pratique du change (Paris, 1868); Tate, Modern Cambist (London, 1868); Simon Spitzer, Ueber Münz- und Arbitragenrechnung (Vienna, 1872); J. W. Gilbart, Principles and Prac-known to the other side when the reference is agreed upon tice of Banking (London, 1871); G. Clare, The A B C of Foreign Exchanges (2nd ed., 1895); Money Market Primer and Key to the Exchanges (2nd ed., 1900); J. Pallain, Les Changes étrangers et les prix (Paris, 1905). (Sw.)

ARBITRATION (Lat. arbitrari, to examine or judge), a term derived from the nomenclature of Roman law, and applied to an arrangement for taking, and abiding by, the judgment of a selected person in some disputed matter, instead of carrying it to the established courts of justice. In disputes between states, arbitration has long played an important part (see ARBITRATION, INTERNATIONAL). The present article is restricted to arbitration under municipal law; but a separate article is also devoted to the use of arbitration in labour disputes (see ARBITRATION AND CONCILIATION).

Roman Law.-Arrangements for avoiding the delay and expense of litigation, and referring a dispute to friends or neutral persons, are a natural practice, of which traces may be found in any state of society; but it is from Roman Law that we derive arbitration as a system which has found its way into the

(1) Here the first matter to be dealt with is the submission. A submission is defined as a written agreement (it need not be signed by both parties) to submit present or future differences References to arbitration, whether a particular arbitrator is by consent named in it or not. The capacity of a person to agree out of to arbitration, or to act as arbitrator, depends on the general law of contract. A submission by an infant is not void, but is voidable at his option (see INFANT). A counsel has a general authority to deal with the conduct of an action, which includes authority to refer it to arbitration, but he has no authority to refer an action against the wishes of his client, or on terms different from those which his client has sanctioned; and if he does so, the reference may be set aside, although the limit put by the client on his counsel's authority is not made (Neale v. Gordon Lennox, 1902, A.C. 465). The committee of a lunatic, with the sanction of the judge in lunacy, may refer disputes to arbitration. As an arbitrator is chosen by the parties themselves the question of his eligibility is of comparatively minor importance; and where an arbitrator has been chosen by both parties, the courts are reluctant to set the appointment aside. This question has arisen chiefly in contracts for works, which frequently contain a provision that the engineer shall be the arbitrator, in any dispute between the contractor and his own employer. The practical result is to make the engineer judge in his own cause. But the courts will not in such cases prevent the engineer from acting, where the contractor was aware of the facts when he signed the contract, and there is no reason to believe that the engineer will be unfair (Ives and Barker v. Willans, 1894, 2 Ch. 478). Even the fact that he has expressed an opinion on matters in dispute will not of itself disqualify him (Halliday v. Hamilton's Trustees, 1903, 5 Fraser, 800). So, too, where a barrister was appointed arbitrator, the

court refused to stop the arbitration on the mere ground that he was the client of a firm of solicitors, the conduct of one of whom was in question (Bright v. River Plate Construction Co., 1900, 2 Ch. 835).

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contractor, shall be conclusive evidence of the works having been duly completed, the architect occupies the position of an arbitrator, and enjoys the same immunity from liability for negligence in the discharge of his functions (Chambers v. Goldthorpe, 1901, 1 Q.B. 624). An arbitrator cannot be compelled to act unless he is a party to the submission.

An arbitrator (and the following observations apply mutatis mutandis to an umpire after he has entered on his duties) has

parties and their witnesses; and any person who wilfully and corruptly gives false evidence before him may be prosecuted and punished for perjury (Arbitration Act 1889, sched. i. and s. 22). At any stage in the reference he may, and shall if he be required by the court, state in the form of a special case for the opinion of the court any question of law arising in the arbitration. The arbitrator may also state his award in whole or in part as a special case (ib. s. 19), and may correct in an award any clerical mistake or error arising from an accidental slip or omission. The costs of the reference and the award-which, under sched. i. of the act, must be in writing, unless the submission otherwise provides-are in the arbitrator's discretion, and he has a lien on the award and the submission for his fees, for which-if there is an express or implied promise to pay them-he can also sue (Crampton v. Ridley, 1887, 20 Q.B.D. 48). An arbitrator or umpire ought not, however, to state his award in such a way as to deprive the parties of their right to challenge the amount charged by him for his services; and accordingly where an umpire fixed for his award a lump sum as costs, including therein his own and the arbitrators' fees, the award was remitted back to him to state how much he allotted to himself and how much to the arbitrators (in Re Gilbert v. Wright, 1904, 20 Times L.R. 164). But in the absence of evidence to show that the fees charged by arbitrators or umpire are extortionate, or unfair and unreasonable, the courts will not interfere with them (Llandrindod Wells Water Co. v. Hawksley, 1904, 20 Times L.R. 241).

Under the law prior to the act of 1889 (a) an agreement to refer disputes generally, without naming the arbitrators, was always irrevocable, and an action lay for the breach of it, although the court could not compel either of the parties to proceed under it; (b) an agreement to refer to a particular arbi-power to administer oaths to, or take the affirmations of, the trator was revocable, and if one of the parties revoked that particular arbitrator's authority he could not be compelled to submit to it; (c) when, however, the parties had got their tribunal fixed, and were proceeding to carry out the agreement to refer, the act 9 and 10 Will. III. c. 15 provided that the submission might be made a rule of court, a provision which gave the court power to assist the parties in the trial of the case, 2nd to enforce the award of the arbitrators; (d) the statute 3 and 4 Will. IV. c. 42 (s. 39) put an end to the power to revoke the authority of a particular arbitrator after the reference to him had been made a rule of court; and-a liability which existed also under the act of 9 and 10 Will. III. c. 15-any person revoking the appointment of an arbitrator after the submission had been made a rule of court might be attached. The Arbitration Act 1889 provides that a submission, unless a contrary intention is expressed in it, is irrevocable except by leave of the court or a judge, and is to have the same effect in all respects as if it had been made an order of court. The object of this enactment was to save the expense of making a submission a rule of court by treating it as having been so made, and it leaves the law in this position, that while the authority of an arbitrator, once appointed, is irrevocable, there is no power-any more than there was under the old law-to compel an unwilling party to proceed to a reference, except in cases specially provided for by sections 5 and 6 of the act of 1889. The former of these sections deals with the power of the court, the latter with the power of the parties to a reference, to appoint an arbitrator in certain circumstances. Section 5 provides that where a reference is to be to a single arbitrator, and all the parties do not concur in appointing one, or an appointed arbitrator refuses to act or becomes incapable of acting, or where the parties or two arbitrators fail, when necessary, to appoint an umpire or third arbitrator, or such umpire or arbitrator when appointed refuses to act, or becomes incapable of acting, and the default is not rectified after seven clear days' notice, the court may supply the vacancy. Under section 6, where a reference is to two arbitrators, one to be appointed by each party, and either the appointed arbitrator refuses to act, or becomes incapable of acting, and the party appointing him fails, after seven clear days' notice, to supply the vacancy, or such party fails, after similar notice, to make an original appointment, a binding appointment (subject to the power of the court to set it aside) may be made by the other party to the reference. The court may compel parties to carry out an arbitration, not only in the above cases by directly appointing an arbitrator, &c., or by allowing one appointed by a party to proceed alone with the reference, but also indirectly by staying any proceedings before the legal tribunals to determine matters which come within the scope of the arbitration. Where the agreement to refer stipulates that the submission of a dispute to arbitration shall be a condition precedent to the right to bring an action in regard to it, an action does not lie until the arbitration has been held and an award made, and it is usual in such cases not to apply for a stay of proceedings, but to plead the agreement as a bar to the action (Viney v. Bignold, 1887, 20 Q.B.D. 172). The court will refuse to stay proceedings where the subject-matter of the litigation falls outside the scope of the reference, or there is some serious objection to the fitness of the arbitrator, or some other good reason of the kind exists.

An arbitrator is not liable to be sued for want of skill or for

negligence in conducting the arbitration (Pappa v. Rose, 1872, L.R. 7 C.P. 525). When a building contract provides that a certificate of the architect, showing the final balance due to the

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If there is no express provision on the point in the submission, an award under the Arbitration Act 1889 must be made within three months after the arbitrator has entered on the reference, or been called upon to act by notice in writing from any party to the submission. The time may, however, be extended by the arbitrator or by the court. An umpire is required to make his award within one month after the original or extended time appointed for making the award of the arbitrators has expired, or any later day to which he may enlarge it. The court may by order remit an award to the arbitrators or umpire for reconsideration, in which case the reconsidered award must be made within three months after the date of the order.

An award must be intra vires: it must dispose of all the points referred; and it must be final, except as regards certain matters of valuation, &c. (see in Re Stringer and Riley Brothers, 1901, 1 K.B. 105). An award may, however, be set aside where the arbitrator has misconducted himself (an arbitrator may also be removed by the court on the ground of misconduct), or where it is ultra vires, or lacks any of the other requisites-above mentioned-of a valid award, or where the arbitrator has been wilfully deceived by one of the parties, or some such state of things exists. An award may, by leave of the court, be enforced in the same manner as a judgment or decree to the same effect. Under the Revenue Act 1906, s. 9, a uniform duty of ten shillings is payable on awards in England or Ireland, and on decreets arbitral in Scotland.

Provisions for the arbitration of special classes of disputes are contained in many acts of parliament, e.g. the Local Government Acts 1888, 1894, the Agricultural Holdings (England) Acts 1883 to 1906, the Small Holdings and Allotments Act 1907, the Light Railways Act 1896, the Housing of the Working Classes Act 1890, the Workmen's Compensation Act 1906, &c.

The Conciliation Act 1896 provides machinery for the prevention and settlement of trade disputes, and in 1892 a chamber of arbitra tion for business disputes was established by the joint action of the corporation of the city of London and the London chamber of commerce. At the time when the London chamber of arbitration

was established, there was considerable dissatisfaction among the | it from judicial determination, and refer it to arbitration. This mercantile community with the delays that occurred in the disposal of commercial cases before the ordinary tribunals. But the special provision made by the judges in 1895 for the prompt trial of commercial causes to a large extent destroyed the raison d'être of the chamber of arbitration, and it did not attain any great measure of

success.

order of court.

(2) The court or a judge may refer any question arising in any cause or matter to an official or special referee, whose References report may be enforced like a judgment or order to under the same effect. This power may be exercised whether the parties desire it or not. The official referees are salaried officers of court. The remuneration of special referees is determined by the court or judge. An entire action may be referred, if all parties consent, or if it involves any prolonged examination of documents, or scientific or local examination, or consists wholly or partly of matters of account.

The

Scots Law.-The Arbitration (Scotland) Act 1894, unlike the English Arbitration Act 1889, did not codify the previously existing law, and it becomes necessary, therefore, to deal with that law in some detail. It differs in important particulars from the law of England. Although (as in England apart from the Arbitration Act 1889) there is nothing to prevent a verbal reference, submissions are generally not merely written but are effected by deed. deed of submission first defines the terms of the reference, the name or names of the arbiters or arbitrators, and the "oversman" or umpire, whose decision in the event of the arbiters differing in opinion is to be final. Formerly, where no oversman was named in the submission, and no power given to the arbiters to name one, the proceedings were abortive if the arbiters disagreed, unless the parties consented to a nomination. But under the Arbitration (Scotland) Act 1894, s. 4, where arbiters differ in opinion, they, or, if they fail to agree on the point, the court, on the application of either party; may nominate an oversman whose decision is to be final. The deed of submission next gives to the arbiters the necessary powers for disposing of the matters referred (e.g. powers to summon witnesses, to administer oaths and to award expenses), and specifies the time within which the "decreet arbitral is to be pronounced. If this date is left blank, practice has limited the arbiter's power of deciding to a year and a day, unless, having express or clearly implied power in the submission, he exercises this power, or the parties expressly or tacitly agree to its prorogation. The deed of submission then goes on to provide that the parties bind themselves, under a stipulated penalty to abide by the decreet arbitral, that, in the event of the death of either of them, the submission shall continue in force against their heirs and representatives, and that they consent to the registration, for preservation and execution, both of the deed itself and of the decreet arbitral. The power to enforce the award depends on this last provision. Under the common law of Scotland, a submission of future disputes or differences to an arbiter, or arbiters, unnamed, was ineffectual except where the agreement to refer did not contemplate the decision of proper disputes between the parties but the adjustment of some condition, or the liquidation of some obligation, contained in the contract of which the agreement to submit formed a part. And by the Arbitration (Scotland) Act 1894. s. 1, an agreement to refer to arbitration is not invalid by reason of the reference being to a person not named, or to be named by another, or to a person merely described as the holder for the time being of any office or appointment. An arbiter who has accepted office may be compelled by an action in court of session to proceed with his duty unless he has sufficient cause, such as ill-health or supervening interest, for renouncing. The court may name a sole arbiter, where provision is made for one only and the parties cannot agree (Arbitration [Scotland) Act 1894, s. 2); and may name an arbiter where a party having the right or duty to nominate one of two arbiters will not exercise it (ib. s. 3). Scots law as to the requisites of a valid award is practically identical with the law of England. The grounds of reduction of a decreet arbitral are "corruption," "bribery," "false hold" (Scots Act of Regulations 1695, s. 25). An attempt was made to include, under the expression" constructive corruption," among these statutory grounds of reduction, irregular conduct on the part of an arbitrator, with no suggestion of any corrupt motive. But it was definitely overruled by the House of Lords (Adams v. Great North of Scotland Railway Co., 1891, A.C. 31). The statutory definition of the grounds of reduction was intended, however, merely to put an end to the practice which had previously obtained of reviewing awards on their merits, and it does not prevent the courts from setting aside an award where the arbitrator has exceeded his jurisdiction, or disregarded any one of the expressed conditions of the submission, or been guilty of misconduct. A private arbiter cannot demand remuneration except in virtue of contract, or by implication from the nature of the work done, or if the reference is in pursuance of some statutory enactment (e.g. the Lands Clauses [Scotland] Act 1845, s. 32).

Judicial References have been long known to the law of Scotland. When an action is in court the parties may at any stage withdraw

is done by minute of reference to which the court interpones its authority. When the award is issued it becomes the judgment of the court. The court has no power to compel parties to enter into a reference of this kind, and it is doubtful whether counsel can bind their clients in such a matter. A judicial reference falls like the other by the elapse of a year; and the court cannot review the award on the ground of miscarriage. By the Court of Session Act 1850, s. 50, a provision is introduced whereby parties to an action in the supreme court may refer judicially any issue for trial to one, three, five or seven persons, who shall sit as a jury, and decide by a majority. Law of Ireland.-The Common Law Procedure Act (Ireland) 1856, which is incorporated by s. 60 of the Supreme Court of Judicature Act (Ireland) 1877, and thereby made applicable to all divisions of the High Court of Justice, provides, on the lines of the English Common Law Procedure Act 1854, for the conduct of arbitrations and the enforcement of awards. Irish statute law, like that of England and Scotland, contains numerous provisions for arbitration under special enactments.

tion Act 1889 have in substance been adopted by the Indian Legisla Indian and Colonial Law.-The provisions of the English Arbitrature (see Act ix. of 1899), and by many of the colonies (see, e.g., Act No. 13 of 1895, Western Australia; No. 24 of 1898, Natal; c. 20 of 1899, Bahamas; No. 10 of 1895, Gibraltar; No. 29 of 1898, Cape of Good Hope: s. 7 of this last statute excludes from submission to arbitration criminal cases, so far as prosecution and punishment are concerned, and, without the special leave of the court, matters relating to status, matrimonial causes, and matters affecting minors or other perons under legal disability; Trinidad and Tobago, No. 35 of 1898)." United States.-The common law and statute law of the United States as to arbitration bear a general resemblance to the law of England.

sub

All controversies of a civil nature, and any question of personal injury on which a suit for damages will lie, although it may also be indictable, may be referred to arbitration; but crimes, and perhaps actions on penal statutes by Voluntary common informers may not. The submission may be missions. effected sometimes by parol, sometimes by written instrument, sometimes by deed or deed poll. Capacity to refer depends on the general law of contractual capacity. The law of England as to the capacity to act as an arbitrator and as to objections to an arbitrator on the ground of interest has been closely followed by the American courts. The same observation applies as to the requisites of an award, the mode of its enforcement and the grounds on which it will be set aside. The arbitrator has a lien on the award for his fees; and-a point of difference from the English law-he may sue for them without an express promise to pay (cf. Goodall v. Cooley, 1854, 29 New Hamp. 48). At common law, a submission is generally revocable at any time before award; and it is also, in the absence of stipulation to the contrary, revoked by the death of one of the parties. Provision has been made in Pennsylvania for compulsory arbitration by an act of the 16th of June 1836 (see Pepper and Lewis, Pennsylvania Digest, tit. " arbitration ").

The rules of court also of many of the states of the United States provide for reference through the intervention of Such submissions are usually declared irrevocable by court. the court at any stage in the progress of a litigation. References the rules providing for them.

by rule of

In addition to voluntary submissions and references by rules of court there are in America, as in the United Kingdom, various statutes which provide for arbitration in particular

cases.

Statutory arbitra

tions.

Most of these statutes are founded on the 9 and 10 Will. III., c. 15, and 3 and 4 Will. IV. c. 42, S. 49, "by which it is allowed to refer a matter in dispute (not then in court) to arbitrators, and agree that the submission be made a rule of court. This agreement, being proved on the oath of one of the witnesses thereto, is enforced as if it had been made at first a rule of court" (Bouvier, Law Dict. s.v. "Arbitration").

Ample provision is made in America for the arbitration of labour disputes.

Law of France.-Voluntary arbitration has always been recognized in France. In cases of mercantile partnerships, arbitration was formerly compulsory; but in 1856 (law of the 17th of July 1856) jurisdiction in disputes between parties was conferred on the Tribunals of Commerce (as to which see Code de Commerce, arts.

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