Schutz v. Jordan

32 F. 55, 1887 U.S. App. LEXIS 2714

This text of 32 F. 55 (Schutz v. Jordan) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Southern New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schutz v. Jordan, 32 F. 55, 1887 U.S. App. LEXIS 2714 (circtsdny 1887).

Opinion

Wheeler, J.

This is an action for goods sold and delivered, consisting of cloaks and suits, to the amount of $32,604.99. On the trial the plaintiffs’ evidence tended to show that they forwarded from their manufacturing establishment in New York, to the defendants’ mercantile house in Boston, these goods to that amount, at various times between May, 1884, and August, 1885, on orders received by their salesman from the superintendent of the retail cloak and suit department of the defendants, who had given like orders before; that they sent invoices of the goods directed to the defendants, by mail, at the several times -when the goods were sent; that they sent statements of accounts of the goods to the defendants by mail at some times, and particularly in August and December, 1884; and that the goods had not been paid for.

The defendants’ evidence tended to show that the course of business in their house was such that goods bought and delivered were received by a person whose duty it was to keep a record of the packages, and forward them to the department where they belonged; that correspondence was received by a clerk, who sent invoices of goods bought where they would be received by the superintendent of the department for which they were bought, and all correspondence relating to goods bought to the buyer, and all statements of accounts for goods bought to a bookkeeper, who paid them when found to be correct; that the superintendent, when the invoices were received by him, would pass them as correct, if found to be so, and mark them as correct, and the person who received the goods would do the like, when they would go to that bookkeeper, and be entered on the books and be paid for according to the invoices so passed and received; that the superintendent of this department was inclined to cany more goods than,the firm desired, and was directed to keep down the stock; that, when the plaintiffs’ salesman applied to him for. orders, he told him that he was already carrying more goods than the firm allowed, but that, if he would not have any statements of accounts or dunning letters sent to the house, the goods might be sent, and the invoices might be sent by mail as usual, for they would come to him anyhow, and that he would pass the invoices as fast as he could; that the salesman said he would report.this to the plaintiffs, and after-wards said that he had done so, and they approved of this proposal; that all these goods were sent under that arrangement; that the invoices when received by him were kept from the members of the firm, and others who by the usual course of business would have known about them; that the statements of accounts sent by the plaintiffs in August and December, 1884, were for goods ordered by assistants of the superintendent, and sent in the usual course; that only one other statement was received, by the book-keeper, wdio found that it was for goods which did not appear on the books, and sent it to the superintendent for explanation, who kept'it, and reminded the salesman of the plaintiffs that it should not have been sent, and nothing further - was done about it; that the plaintiffs called -upon the superintendent to pass the invoices from time to .tjme/and' complained that they were slaved and getting old; and he requested them to send him some invoices of the goods without date, [57]*57which they did, and into some of which he put late dates, and passed them as correct, and procured the person who received goods bought to pass them by telling him they were all right, and sent them to the bookkeeper to be paid, who paid them, and sent remittance sheets showing that they were paid as bills of a late date, which the plaintiffs received, but applied the payments to the charges of the amounts at the earlier dates wdien the goods wore sent; that the goods as they were received were placed, by direction of the superintendent, among the other goods of the department for sale, and were sold, and the money received for them by the defendants, except to the amount of from three to five thousand dollars at cost prices, before this arrangement, or the fact that any goods not coming in the usual manner and appearing on the hooks of the defendants, was discovered; that goods from others to the amount, with these, of $252,000, wore received into this department, on similar arrangements with the superintendent, and in like manner; that he marked down prices without entering them in a book kept for that purpose, and forced sales at the reduced prices, so that this management of the department resulted in great loss, but the goods received from the plaintiffs, and sold, brought as much on an average as they were charged at; that when the discovery was made all the goods remaining on hand which had como from the plaintiffs wore laid out and examined by the superintendent and others, to ascertain whether any of them wore goods that had not been paid for; that it could not be determined wiiether they were or not, and they were put back into the stock for sale, and were all sold or on hand there; that other goods sent by the plaintiffs after the discovery wore refused and returned; that the defendant firm consisted at that time of four members; that their house was divided into 52 departments, and they had upward of 2,000 persons employed in conducting their business; that one of the firm, "Marsh, and the person who had charge of receiving goods bought, had died before the trial.

The book-keeper who had charge of paying for goods testified to the course of business as stated; the superintendent, to the course of business and to the concealment of these transactions from the defendants, and liowdt was done; and two of his assistants testified to the disposition of these goods in the stock of thodepartmont, and to the marking down of goods and the results. The senior member of the firm testified that Marsh had charge of the wholesale department; that when there he and the other two members of the firm would go through this cloak and suit department, perhaps once a week, or every day, but did not examine the stock; that on every Saturday they had a statement furnished to them of the amount oí stock on hand in each department, and of the amount at the corresponding time of the year before, and also every month a oiatement of the amount on hand then and at the corresponding time of the year before;, and that they had no other knowledge on the subject; that the figures did not excite suspicion; that he was gone on a voyage round the world from the fore part of November, 1884, to about June 20, 1885, and that he had no information at any time of the receipt of any of these goods, or of the avails of them, until after the discovery; [58]*58that one of the other members of the firm was at the time of trial gone on a voyage round the world, and had been gone six months; and that he defended this suit because, in his opinion, the payment of the claims would involve a loss in that department. The testimony of the absent partner was not introduced, and the other one did not testify; and none other of the persons employed in the defendants’ establishment testified in the case on the trial. The plaintiffs’ evidence, in reply, tended to show that they could have determined whether the goods that remained after the-discovery were of those paid for or not, if they had been called upon for that purpose; and that they were not so called upon.

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Bluebook (online)
32 F. 55, 1887 U.S. App. LEXIS 2714, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schutz-v-jordan-circtsdny-1887.