The Asiatic Prince

108 F. 287, 47 C.C.A. 325, 1901 U.S. App. LEXIS 3763
CourtCourt of Appeals for the Second Circuit
DecidedApril 3, 1901
DocketNo. 51
StatusPublished
Cited by17 cases

This text of 108 F. 287 (The Asiatic Prince) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Asiatic Prince, 108 F. 287, 47 C.C.A. 325, 1901 U.S. App. LEXIS 3763 (2d Cir. 1901).

Opinion

LACOMBE, Circuit Judge.

The merchandise consisted of flour, kerosene, bacon, and lard, of the invoiced price of £6,499.1.8, which had been ordered by Belmarco & Co., merchants of Santos, who were also agents of the Prince Line — of which the Asiatic Prince was one —at that port. The plaintiff and Belmarco & Co. had had many business transactions prior to the one in question, and as a result of them the latter firm was, as libelant claims, indebted to him to a considerable amount. Bills of lading for this merchandise were issued to the libelant, reciting that the goods were to be delivered at Santos “unto order, or his or their assigns.” A letter of credit on London bankers to the credit of Belmarco &■ Co. was at the time available, and against that libelant drew for £1,483.9.8, credited and applied that amount to this shipment, and drew a draft on Belmarco & Co. for the balance, £4,965.11.7, with interest and banker’s commission; in all, £4,986.6.2. Libelant attached indorsed copies of the bills of lading to this draft, and forwarded them to a Brazilian bank at Santos, with instructions to deliver to Belmarco & Co. upon payment of the attached draft. These documents went forward in the mail that was carried by the same steamer, together with a letter advising Bel-marco of the application of the London credit and of the draft for balance of price of shipment. The steamer reached Santos on February 5th. On February 6th, in the afternoon, the bank at Santos presented the draft to Belmarco. The manager of the bank, libelant’s witness, testified that under the Brazilian Commercial Code and the commercial usage in Santos payment of a sight draft may be delayed for 24 hours if the holder finds it convenient, and that in this case the bank did not expect Belmarco to write any acceptance on the draft, nor to pay it before the expiration of the customary 24 hours. Belmarco, who, as will be seen hereafter, had meantime made remittances on account of this merchandise, at first refused payment, but subsequently, on the same day, reconsidered, and on the next morning, before the bank opened, deposited with one'of the officers of the bank a check sufficient to cover the amount. It seems, however, that a few days after the sailing of the Asiatic Prince libelant changed his mind about applying the London credit to this shipment, and drew a second draft for the full amount of the invoice price, with interest and banker’s commission, £6,494.8.4, which he sent to the bank at Santos to be substituted for the first draft. Although the cable was being constantly used by both parties, libelant, for some reason known only to himself, failed to advise Belmarco & Co. before they received his"letter stating.application of the draft of £1,483.9.8 to this shipment that he had reconsidered such application, and had chosen to apply it to the old indebtedness. This second draft arrived while discussion was going on between the manager of the bank and the representative of Belmarco & Co. as to the rate of exchange, the question being how much the bank should refund with the bills of lading, the amount of the check being in excess of what either 'party contended was the proper rate of exchange. The bank thereupon refused to deliver over the bills of lading except on payment of the second draft. Belmarco thereupon commenced judicial proceedings, and under order of the local district court deposited on February 7th with [289]*289the Bank of Santos, for libelant’s account, the first draft and an amount in Brazilian currency stated in the order to be sufficient to cover it. Entry of the goods rvas made on the ship’s copies bills of lading unsigned and stamped “Nonnegotiabie.” Proof of all the circumstances above set forth was made to the customs authorities. A bond of indemnity was required from Belmarco, and the goods passed into his hands, notwithstanding the protests of the bank aiid of Karl Valais & Co., the libelant’s agents, to whom, on February 10th, the business was turned over in compliance with instructions by cable. The district judge held that delivery had been made by tlie vessel according to tlie provisions of the local law, and that by reason of the application of the £1,48:3.9.8, and two other remittances of £2,000 and £900, respectively, to cover this shipment, Belmarco had acquired a special property in the goods, and had a right to the completion of the contract under which they were shipped upon payment of the balance of the price on arrival at Santos; and that, as such balance, or more, had actually been tendered, and judicially deposited with the draft as payment after tender, Belmarco & Go. were the true owners, and the ship absolved from all responsibility, because it delivered to the person then rightfully entitled to it. As to the first of these propositions the district judge held:

“Tlie proof Is Rere overwhelmingly in favor of tlie respondent tliat by the law anti usage of Santos tlie delivery of all dutiable goods like these must be made by the ship to the customs authorities, as was done in this ease, and cannot be made otherwise, and that the allowance of entry and responsibility for a delivery of the goods on payment of duties to the proper person thereafter devolves wholly upon tlie customs authorities.”

Such a system, in which the customs authorities assume the ship’s responsibilities as to making true delivery, is contrary to the system prevailing in other ports. .Nevertheless it is not incredible that a government may undertake such functions. Whether or not it is the law and usage in Bantos is, a question of fact, the burden of proving which is on the party asserting its existence. The law of a foreign country and its commercial usages are proved here by calling its lawyers and merchants and interrogating them. That has been done in this case, with a result which certainly warrants the conclusion that the proof is overwhelmingly the one way. It is true that as to the law of Brazil the only witness called by claimant was a young lawyer, but his statements are direct, positive, and reiterated to the .effect that the customs authorities require delivery to them, and themselves make delivery to whomever has the right to receive,» and there is no reason apparent why his statements should not be accepted, especially when the great weight of mercantile testimony is to the same effect. There was abundant opportunity to take tlie testimony of some other lawyer :u the district court if the statements of claimant’s witness were inaccurate, and to make application here to take further proofs; but libelant has contented himself with printing copious excerpts from the statute law of Brazil, which he insists do not sustain the witness’ statements. As an example of the argument employed, the witness testified, “The custom-house inspector alone decides any right to entry and delivery,” and referred to article 477 of [290]*290the Consolidated Custom-House Laws. Appellant prints this article, and says “it makes no reference to delivery.” Apparently that is so, but it does provide for making proof to the collector by legitimate documents of a party’s right to receive imported merchandise. Such a method of criticizing the testimony of a foreign lawyer as to the law which prevails in his country is unpersuasive. There is much more than the text of a statutory enactment to be considered. Departmental regulations, administrative construction, judicial exposition, are often quite as important. The text of the act of congress of February 26,1885, might well convey to a jurist in some foreign country a different meaning from that which it conveys to a lawyer here who is familiar with Holy Trinity Church v. U.

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Cite This Page — Counsel Stack

Bluebook (online)
108 F. 287, 47 C.C.A. 325, 1901 U.S. App. LEXIS 3763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-asiatic-prince-ca2-1901.