Interocean Mercantile Corp. v. Sawyer Biscuit Co.

253 Ill. App. 551, 1929 Ill. App. LEXIS 66
CourtAppellate Court of Illinois
DecidedJune 26, 1929
DocketGen. No. 33,048
StatusPublished
Cited by3 cases

This text of 253 Ill. App. 551 (Interocean Mercantile Corp. v. Sawyer Biscuit Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interocean Mercantile Corp. v. Sawyer Biscuit Co., 253 Ill. App. 551, 1929 Ill. App. LEXIS 66 (Ill. Ct. App. 1929).

Opinion

Mr. Justice Ryner

delivered the opinion of the court.

On May 21, 1920, a written contract was entered into between the parties to this litigation by the terms of which the plaintiff agreed to sell and the defendant agreed to buy 100 tons of sugar. The provisions of the contract pertinent to the issues raised on this appeal are as follows:

“Minford Lueder & Co.
106 Wall St.
New York May 21,1920.
Sold To: Sawyer Biscuit Co.,
Chicago, Ill.
Through Meinrath Brokerage Co.,
Chicago, Ill.
By Interocean Mercantile Corporation
About one hundred (100) long tons, (10% more or less) of Java white granulated sugar, at 23%c per pound, net, duty paid, ex dock New York, landed weights less actual tare.
This sugar is sold on the basis of No. 25 Dutch Standard polarizing not less than 99 degrees, but in the event of it testing less, a corresponding allowance shall be made in accordance with New York rulings.
This sugar shall be shipped by steamer and/or steamers from Java between July 1st and August 31st, inclusive, and the relative bill of lading shall constitute proof thereof.
This sugar shall be taken delivery of by the buyer immediately on being unloaded.”

On October 18, 1920, the plaintiff wrote the defendant:

“Messrs. Sawyer Biscuit Company,
Chicago, Illinois.
Dear Sirs:
With reference to your contract with us for 100 tons of sugar, we beg to inform you that all our August Java shipments were made on two steamers. The first boat is due to arrive early in November, say about Nov. 10th, whereas the second steamer we have been advised has been delayed en route and will probably arrive some three weeks later. Will you kindly let us know whether you would prefer to receive the whole or part of your purchase out of the first steamer, or whether it would suit you best to get delivery out of the later boat, so that we can make all our arrangements accordingly, if possible. If for any reason you should prefer an immediate delivery we suggest that you take up with us the matter of giving you like sugars from spot stocks.
Kindly reply promptly, and oblige,
Tours faithfully,
Interocean Mercantile Corporation
Gen. Manager.”

The steamers referred to in the letter were the Alloway and the Honolulu Maru.

Receiving no reply to its letter, the plaintiff on October 25, 1920, sent a telegram to the defendant stating:

“Please reply immediately to our letter of eighteenth October as' we are now making allocations.”

There was no response by the defendant to either the letter or the telegram until November 22, 1920, when it telegraphed the plaintiff as follows:

“Replying your telegram received eighteenth instant we are under no obligation to accept sugar shipped on Alloway and you may take this as our refusal to do so.”

The next communication between the parties was a telegram, dated December 10, 1920, from the plaintiff to the defendant stating:

“Referring our letter Eighteenth October and your telegram Twenty-second November your hundred tons sugar will be delivered from Steamer Honolulu Maru due here next Wednesday December Fifteenth. Please arrange for payment Equitable Trust Company accordingly.”

Two days later the defendant replied by telegraph saying:

“Replying your telegram tenth instant we are under no obligation to accept sugar shipped on Honolulu Maru and you may take this as our refusal to do so.”

On December 16, 1920, the Equitable Trust Company, to whom payment for the sugar was to be made, wrote to the defendant asking for the latter’s reasons for refusing to accept the sugar from either" steamer. The reply received, six days later, was:

“We refer you to our counsel in this matter, Messrs. Putnam, Bell, Dutch & Santry of Boston.”

The steamer Alio way arrived in New York on November 12, 1920. The Honolulu Maru arrived December 15 of the same year. The defendant refused to accept the sugar or pay for it. It gave no reason for its refusal. On October 6,1922, the plaintiff instituted suit in the circuit court of Cook county to recover damages for breach of the contract. A jury trial was had resulting in a verdict, and judgment upon the verdict, in favor of the defendant. The plaintiff appealed.

The pleadings are voluminous but they present but two simple issues. The principal defense was that the sugar tendered was not of the kind or quality called for by the contract. The qther was that there was a default as to the time of shipment.

In connection with the conduct of the defendant the history of the sugar market in the Hnited States for the year 1920 is decidedly enlightening.

It is conceded, that in the early months of the year there was an acute shortage of sugar. A witness for the defendant, on cross-examination, said:

“There was a war shortage and the price went up to — wherever you could find any sugar, would bring most any old price, as far as that is concerned.”

He might well have added that parties requiring sugar were willing to pay almost any price for any “old” kind of sugar. The condition of the market and the causes of the condition were stated, by a witness for the plaintiff, to be as follows:

“Well, after the signing of the armistice, in the latter part of 1918, the restrictions on sugar throughout the world began to ease up, and the people whose sweet tooth had been denied them for three to four years previous began using sugar in large quantities, and prices gradually advanced during 1919, until the beginning of 1920, when the United States Equalization Board, which had charge of all the distribution of sugar in this country, ceased to function, and after that period there was an open market and prices advanced for granulated from about 9 cents a pound to as high as 28 to 30 cents a pound between the 1st of January and the middle of July, 1920, due to a tremendous buying move of manufacturers and consumers and grocers and distributors of sugar. Due to these high prices Europe started to sell sugar here.

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Bluebook (online)
253 Ill. App. 551, 1929 Ill. App. LEXIS 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interocean-mercantile-corp-v-sawyer-biscuit-co-illappct-1929.