Lydia Cotton Mills v. Prairie Cotton Co.

156 F. 225, 84 C.C.A. 129, 1907 U.S. App. LEXIS 4693
CourtCourt of Appeals for the Fourth Circuit
DecidedSeptember 11, 1907
DocketNo. 685
StatusPublished
Cited by5 cases

This text of 156 F. 225 (Lydia Cotton Mills v. Prairie Cotton Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lydia Cotton Mills v. Prairie Cotton Co., 156 F. 225, 84 C.C.A. 129, 1907 U.S. App. LEXIS 4693 (4th Cir. 1907).

Opinion

BOYD, District Judge.

The Prairie Cotton Company, the plaintiff below in this case, which will be denominated plaintiff hereafter, is a Mississippi corporation, doing business in that state as a dealer in raw cotton. The Lydia Cotton Mills, the defendant below, which will hereafter be referred to as the defendant, is a South Carolina corporation, located in that state, carrying on the business of a manufacturer of cotton. The present suit was brought by the Prairie Cotton Company to recover the sum of $2,500, alleged to be due the plaintiff on a [226]*226' contract for the sale and delivery of cotton to defendant. The allegations of plaintiff are, in substance: That on the 11th of October, 1904, the defendant contracted to purchase from plaintiff 200 bales of cotton at the price of 10½ cents per pound, the staple to be 1⅜" long, according to the custom of the cotton trade and of strict middling, nothing below middling; that 50 bales of this cotton were shipped to the defendant and were received and accepted; and that 150 bales were shortly thereafter shipped, which were refused. Thereupon the plaintiff, upon the refusal of the defendant to accept the last shipment of 150 bales, sold the same, and the basis of claim in the suit is the alleged loss by reason of the difference in the price received at the sale and the price agreed upon, together with the costs incident to the sale, et cetera, making in all the sum of $2,500.

The defendant answers and says: That on the 13th of October, 1904, it agreed to take from the plaintiff 200 bales of cotton at the price of 10½ cents per pound, but that the cotton contracted for was to be of the same quality and character as the 25 bales which had been theretofore purchased by the defendant from plaintiff as a sample lot; that the cotton was to be full 1⅜" in length of staple and was to average strict middling, nothing middling; that the 50 bales of the first shipment were sent with bill of lading attached; that defendant, without opportunity to examine the cotton, paid for it and received it from the railroad by which it had been shipped, but, after receiving it, upon examination, it was found that the cotton was of an inferior grade and was not the kind and quality of cotton, especially in length of staple, as the sample which had been furnished by the plaintiff and as had been contracted for by the defendant; that, when the last shipment of 150 bales arrived, defendant declined to accept that, it being of the same length of staple, quality, and grade as the 50 bales theretofore received, and not such cotton as had been contracted for.

The cause was tried by jury and a verdict rendered in favor of the plaintiff for $2,255.66. The court, however, under a practice which prevails in South Carolina, reduced the verdict to $1,127.83, and for the latter amount a judgment was rendered, to which the defendant’s counsel duly excepted. At the close of the. plaintiff’s testimony the defendant’s counsel moved the court to nonsuit the plaintiff on the ground that upon the undisputed evidence the plaintiff was not entitled to recover, and especially upon the exhibition of the communications, by letter and telegraph, between the parties, which were the evidences of the contract of purchase, together with the admissions of plaintiff through its agent, examined as a witness. The court refused to grant the motion, to which the defendant duly excepted. There were several exceptions taken by.defendant during the trial; one particularly relied upon relating to the question as to whether or not there was a rescission of the contract by the plaintiff. But we do not deem it necessary to consider this nor any other question involved in the case, except that of a proper construction of the contract of purchase. In order to arrive at a full understanding of the contract, we deem it necessary to give the correspondence between the plaintiff and the defendant in relation thereto in full. The transaction was in 1904, and [227]*227on the 13th of August of that year the defendant addressed the plaintiff as follows:

“Aug. 33th.
“We will purchase a contract of cotton 1⅜ inch staple running from Sept 1, 1904, to Sept. 1, 1905, the cotton to be paid for as delivered and to be delivered 150 bales per month f. o. b. our mills. This cotton has to average full 1⅛ inch staple, bender, nothing less than full will be accepted. If you are interested in such a contract we will be pleased to have your quotations and views from time to time until the contract is closed.”

Plaintiff to defendant:

“Aug. 18th.
“Yours 13th to hand. Contents noted. We feel satisfied we" can supply your wants as to the character of cotton wanted if we can agree on price. Such cotton as you mention will always command a pretty good premium over short cotton, say 1 to 1-16 staple. Will however, keep your company posted and will do my best to supply your wants.”

Defendant to plaintiff:

“Aug. 3.7th;
“We desire to have you forward us at once a sample of cotton regardless of the grade that measures full 1⅛ inch staple, the length in staple being the point in question. Please let us have this sample at once with all expense charges to us.”

Prairie Cotton Company wrote on bottom of this:

“Gentlemen: At present there is nothing in this market that will represent the cotton as required by you. In fact there is no cotton here at all. Will send type as soon as it can be obtained.”
“Aug. 31, 1904.
“Wo sent you a few days ago types showing what we call very full !⅜ inch cotton, in fact it is 1⅜ inch to I 3-16 inch. Would be glad to know what you consider it. Kindly lot us hear from you.”
“Sept. 1, 1004.
“We are in receipt of your favor of the 28th ult. and are to-day in receipt of the sample of 1⅜ inch staple cotton. We have gone over this cotton carefully and find that it will just about average 1⅛ inch staple. So we will retain this sample as your type of full 1⅝ inch staple cotton for future reference. We are now in. the market for 100 bales of this cotton. Let us have your price — landed Clinton, shipment at once. We are also in the market for 150 to 200 bales cotton per month for each month until Sept 3, 1905. See our letter of August 13th. Wiil such deliveries be satisfactory with you? Please lot us know. We are now ready for your quotations from timo to time. We desire the following grade: Strict middling. We purchas© by Garolina mill rules.”
“Sept 3, 3904.
“Yours 2d to hand; contents noted. The sample sent you is very full 1⅜ inch; in fact it is what wo sell for ⅛ to 3-16 cotton. We sold this cotton few days ago 12¾ landed; it is worth 11¾ here. We can land you 100 to ,200 bales Sept, shipment say for 12¾, probably 12 cts. This character of cotton commands good premium. Can sell you commercial 1⅛ inch or full 1 1-6 to 1½ at much less price. Cheap cotton is a thing of the past; the crop is not made. Let us hear from you.”

[228]*228Telegram:

“Sept 12.
“Let us ship you 25 bales to show you the style and character of the cotton. Eleven quarter. This quarter less than we are getting, but want make.start with you as we are satisfied it will lead to business. Answer.”

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Bluebook (online)
156 F. 225, 84 C.C.A. 129, 1907 U.S. App. LEXIS 4693, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lydia-cotton-mills-v-prairie-cotton-co-ca4-1907.