Chapter II: Front Matter (2)

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 Ubersicht der Feldzuge 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 booksellers.

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 converse, are mainly confined to stocks and shares, foreign 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 4-3/4 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 25.25-1/2, and Antwerp's selling price of Vienna being 105 francs for 100 kronen, on dividing 25.25-1/2 by 105 an exchange of 24.05-1/4 was obtained or 1/2 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 93-1/4 and were paid for by telegraphic transfer at 24-3/8 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 24-1/2 pence per yen. The London price works out thus:

93.25 X 24.375
-------------- = 92.77,
24.50

to which must be added the loss of interest, as the firm in London paid cash on the 24th of March for the telegraphic transfer, and did not recover payment until the arrival of the bonds from Tokio five weeks later. The following is a computation of the transaction:--

London price 92.77
Five weeks at 5% .45
English stamp 1/2% on nominal amount .50
Insurance 1/8% .12
-----
93.84

This sum represents the net cost to the arbitrage house in London, and the money paid on the 28th of April left a profit of about 3/16%. 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 41-3/16 dollars per share, and were bought in London at 42-7/32 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 L100 nominal. These shares, therefore, cost in London, at the purchase price of 42-7/32, L42:4:5. The money realized in New York for five shares at 41-3/16 was 205.93 dollars. A cheque on London was bought at 4 dollars 85-1/4 cents, realizing L42:8:9. 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 trade 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 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 _Borse und Actien_ (Cologne, 1869); Coquelin et Guillaumin,
_Dictionnaire de l'economie politique_ (Paris, 1851-1853); Ottomar
Haupt, _London Arbitrageur_ (London, 1870); Charles le Touze, _Traite
theorique et pratique du change_ (Paris, 1868); Tate, _Modern Cambist_
(London, 1868); Simon Spitzer, _Ueber Munz- und Arbiragenrechnung_
(Vienna, 1872); J.W. Gilbart, _Principles and Practice 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 etrangers 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 practice of European nations in general, and has even evaded 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 sumptus_, 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; in 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).

_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.

References by consent of the court.

(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 to arbitration, whether a particular arbitrator is named in it or not. The capacity of a person to agree 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 known to the other side when the reference is agreed upon (_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).

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 arbitrator 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, and 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 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 power to administer oaths to, or take the affirmations of, the 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).

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 arbitration 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 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'etre_ of the chamber of arbitration,
and it did not attain any great measure of success.

References under 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 report may be enforced like a judgment or order to 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.

_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. The 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, here 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 it
from judicial determination, and refer it to arbitration. This 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.

_Indian and Colonial Law._--The provisions of the English Arbitration