Heyworth v. Miller Grain & Elevator Co.

73 S.W. 498, 174 Mo. 171, 1903 Mo. LEXIS 282
CourtSupreme Court of Missouri
DecidedApril 1, 1903
StatusPublished
Cited by4 cases

This text of 73 S.W. 498 (Heyworth v. Miller Grain & Elevator Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heyworth v. Miller Grain & Elevator Co., 73 S.W. 498, 174 Mo. 171, 1903 Mo. LEXIS 282 (Mo. 1903).

Opinion

VALLIANT, J.

Plaintiffs are partners composing a firm of merchants in Liverpool, engaged in the grain trade; defendant is a corporation in St. Louis engaged in like business. In 1892, .the two concerns had transactions together involving shipments of -corn by defendant at St. Louis to plaintiffs .in Liverpool. Out of these transactions, disagreements have . arisen between the parties which have led to this suit.

The plaintiffs’ petition is in three counts, each relating to a -separate transaction. The cause was by consent referred to Fred A. Wislizenus, Esquire, to try all the issues. The findings of the referee were for the plaintiffs on the three counts. Exceptions to his report were overruled, and judgment for plaintiffs was rendered in accordance with his findings, for the sum of $5,947.17, from which judgment the defendant has appealed.

No assignment of error is made to the rulings and judgment of the trial court, in so far as they relate to the first and third counts of the plaintiffs’ petition, hut the rulings and judgment as they relate to the cause of action stated in the second count, are complained of. The essential difference between the plaintiffs and the defendant lies in the construction that each party places on the contract under which the grain, mentioned in the second count, was shipped. The plaintiffs maintain that it was a contract for-a cargo shipment, while defendant holds that it was for a parcel shipment. The decision of that question is [176]*176the decision of the case. The terms “cargo” and ‘‘parcel” as relating to the trade in which these parties were engaged, are technical and expert testimony from both sides was heard by the referee to explain their meanings. We think the testimony sustains the referee in his understanding of the meaning of these terms, and as his definition is so clearly expressed in his report, we quote it:

“The most important matter in this.interoceanic trade bearing on this case is the distinction between ‘parcels’ and ‘cargoes’ with the special law as to ‘cargoes’ established by the customs. A ‘parcel’ sale is. of a definite quantity of grain placed in an ocean vessel with any other freight, to be delivered at a definite port to which the vessel is bound by its charter. It is the ordinary sale transaction; the special customs of which trade between Liverpool and America, do not concern us in this matter. The essential feature of a ‘cargo’ transaction is that the whole purchase must go in one vessel, which carries no other freight, in order that the whole purchase may be-handled without any complications by the purchaser. This vessel is consigned to some convenient - pqrt, which need not be a grain market, as for instance ‘Cork, for orders.’ On arrival at this port, the vessel finds orders from the purchaser to proceed to some defined port and unload. The limits as to selection of such other port are fixed in the contract; of course the charter party of the freighter must conform. The-agreement usually covers ports in the United Kingdom, as also a portion of the European continental seaboard. This flexibility as to cargoes, this opportunity of sending them to the best market on their arrival with information beyond possibility of knowledge when purchase was made and even when the grain left America, renders cargoes particularly desirable at Liverpool. The cargo contracts command a premium over the market price of ‘parcel’ grain* [177]*177and this, too, in spite of the fact that freight to the point of ultimate delivery is almost sure to be somewhat higher than in case of direct shipment to that port.
“A contract for a cargo calls for a definite amount of grain, as, say, 12,000 quarters.. The custom of the trade has fixed the limits within which the- amount in the bill of lading may vary from the amount fixed by the contract at ten per cent of the contract amount. Eor instance, on a cargo contract for 12,000 quarters, any amount between 10,800 quarters and 13,200 quarters is a proper tender. If, however, the variance either way exceeds the ten per cent, though but a trifle, the purchaser has the right to refuse to accept such a cargo as a proper tender under the contract.
“Attention must be called to the superior advantages of ocean bills of lading over inland bills of lading in this grain traffic across the Atlantic. Even as regards parcels, ocean bills of lading are much more satisfactory to the Liverpool merchant than our through inland bills issued by some railroad. Contracts pass from hand to hand in the Liverpool market. Precision is essential. Anything outside the routine form is destructive of negotiability. Technical irregularity as to a note, or cloud, however frivolous, on the title of* realty collateral to the note, makes such papers^ troublesome to handle here. It is easy for us, who study this question from the records beforp us, to appreciate the fact that in a world market, such as Liverpool, a railroad bill of lading from. St. Louis calls up doubts and presents possibilities which seriously interfere with its market value. It seems, however, that parcels are shipped at times from St. Louis to Liverpool; but the evidence makes it clear that it is impracticable, if not impossible, to ship a cargo on an inland bill of lading.”

The testimony shows that late in December, 1891, [178]*178or early in January, 1892, a Mr. Gilchrist, representing the plaintiffs, was in St. Louis and held several conversations with defendant in the person of Mr. Miller, looking to the establishment of business relations between the parties. In these conversations, according to the testimony of defendant, the subject of ocean and inland bills of lading was discussed, Mr. Gilchrist at first insisting on ocean, but finally agreeing to inland bills of lading.

On January 27, 1892, plaintiffs mailed the follow-lowing letter to defendant, which it received on February 9th.

“Liverpool, January 27, 1892.
“Messrs. Miller Grain & Elevator Co., St. Louis.
“Dear Sirs: Our representative, Mr. Arch Gilchrist, advises 'us that he has had the pleasure of meeting your president, and had had some conversation with reference to fexport business. If, as we gather from the tenor of his advices, you are fully equipped to do this business; we have no doubt but that we could work with advantage. The drawback to grain business from interior points is the difficulty of sellers giving ocean bills of lading, which are a necessity for satisfactory business. If you can arrange to give us ocean bills of lading for anything you sell us, the business can be done, but if not, it would appear to be a necessity that the business should go through houses at the seaboard. The delays and shortages, etc., which at present accompany through bills of lading business are matters over which we have no control, and they are consequently risks and liabilities, which we hardly feel ourselves called upon to accept. At present we Mo business with many of the seaboard houses to whom you are sellers, and there is.really no necessity for these intermediates if the business is properly looked after. We should imagine that you have competent agencies, etc., to properly care for any.of your shipments.
[179]*179“We await your further advices and shall be pleased to have your cable code.

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Bluebook (online)
73 S.W. 498, 174 Mo. 171, 1903 Mo. LEXIS 282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heyworth-v-miller-grain-elevator-co-mo-1903.