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July !•'. II"''- 



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Payment on Safe Arrival 



'llu- ujjMJl ;uLd e.\tr:iuiiliii:ii V I'Diulitujii.- ^•ll^rlllllullll^; the r\|iiiil 

 trn<k> in cvcrv line niiikos iuf0!<»iirv ii ('Oin|ili>to mulerstiiiuiiiig of 

 new vonditions and requiroiiients wliidi Imvc ilcvi'lt'iioil iinil boon jmt 

 into effect since tlie >lii]>nieiit of cuninioditios ubroad liiis been car- 

 ried on under exacting and )i:izarilon» conditions. Potisibly ex- 

 porters in tlii8 country arc not so vitally interested as nre exporters 

 in those nations contingent to the zone of warfare, but ncvertlieless 

 a thorough understanding of just what renditions arc in effect is 

 escntial. 



The Timber Trades .loiirnal of London, England, has published 

 in a ri-oent issue a very able analysis of the now arrangements and 

 agieon.onts, their conflicting clauses an4l other essential points. 

 Hai:i>wood Eecoud takes pleasure in presenting this to American 

 exporters in tliu belief that some of them at least wilt find in it 

 ninny valuable suggestions: 



With rognrtl to tbc contracts which nrc now being eutcrcl into (or 

 the purchase of Swedish gouds. with the addition to un ordinary printed 

 c. 1. f. form of a clause making payment conditional upon tbc safe 

 arrival of the steamer. In the peculiar circumstances now existing, some 

 such plan was no doubt the most ready manner In whlcb importers' 

 Interests could be secured. .Mtbougb the general purpose of the clause 

 Is well understood, It is possibly open to doubt whether the significance of 

 the chonged conditions of payment are, however, in all cases fully appre- 

 ciated by the parties to these contracts. Judges who try commercial 

 cases frequently indulge in comments at the expense of the trading 

 classes as to the manner in which printed contracts arc added to in 

 order to meet particular exigencies, without reference to the cfTect of the 

 alterations on other clauses in the same document ; and it would perhaps 

 be as well If attention were directed to tbc relevancy of the new words 

 to other terms In the contract or in relation to contingencies which, In 

 the natural order of things, may be likely to arise out of the transaction. 

 .\t the present time both sides appear to l)c regarding the safe arrival 

 of the steomer as the sole and only risk attaching to the venture. It is, 

 however, a very elementary proposition that, although the vessel may 

 duly arrive, the goods themselves may have been lost whilst in transit 

 to the vessel, or in loading, or may have been washed overboard or 

 jettisoned, or be obtainable only on condition of the execution of an 

 average bond. Even though ship and goods arrive it is quite within the 

 bounds of possibility that the latter may come to hand in a damaged 

 condition as the result of perils of the sea. Under the ordinary circum- 

 stances of a c. I. (. transaction, these dlfflcultlcs would be met by the 

 insurance policy ; but we understand that in some cases shippers are de- 

 clining to hand over the policies of Insurance, and especially the war 

 policy, contending that under the terms of payment the policies belong to 

 them, or that it is necessary that they should be retained on the other 

 side to recover possible casualties. Although the major part of the risk 

 has, no doubt, passed, are importers who acquiesce in this course acting 

 prudently and wisely? 



It may, of (ourse. be claimed that importers* risks commence only with 

 the safe arrival of the steamer, and that in all respects prior thereto 

 the goods were at shippers' risk. These contracts, in the great majority 

 of cases, contain, however, a condition ordinarily expressed in tbc follow- 

 ing, or similar, words : 



"Property in goods to be deemed for all purposes, with the exception 

 of the retention of vendors' lien for unpaid purchase price, to have passed 

 to buyers when goods put on board." 



Now under the Sale of Goods Act, where there is a contract (or the 

 sale of specific goods, the property (and therefore the risk) is trans- 

 ferred to the buyer at such time as the parties to the contract intend it 

 to be transferred ; and for the purpose of ascertaining the intentions of 

 the parties, regard Is to be bad to the terras of the contract, the conduct 

 of the parties, and the circumstances of the particular case. Taking the 

 clause in the contract in conjunction with the aliove statement from the 

 Sale of Goods Act, it seems difBcult, (rora a layman's point of view, to 

 avoid the conclusion that if regard is "had to the terms of the contract," 

 though payment may be from arrival, the goods are at the risk of the 

 buyers from the time they are "put on board." .-Vfter all. payment is 

 not the contract, but an incident of it. Notwithstanding a new payment 

 clause brought about by the (orce of present unfortunate circumstances. 

 It is difficult therefore to avoid the conclusion that the contract is still 

 a c. 1. (. contract In all its essential details ; and must in the strict sense, 

 consequently, be regarded, not as a sale o( the goods, but of the docu- 

 ments relating to them. To take up goods on c. i. (. terms without tlie 

 policies would seem to be as impolitic a proceeding as attempting to play 

 "Hamlet" without the prince. 



It may, no doubt, be said that i( any trouble arises necessitating the 

 production of jMilicies, they can be obtained from the shippers. If the 

 buyer has, however, already taken up the bill o( lading without the 

 policies, or an undertaking to produce them, where, it may l)e asked, 

 does the necessary consideration for the transfer of the policy arise? In 



-18— 



iirj.- Iin\-iiii, ihi- linv i>n the mnttrr was ihiis authoritullvely. c\pri-h»ed by 

 lAini 1-lNlu-r : "Where the HUbJi-et niiilter of the InKurance Is sold during 

 the running of the policy, no Inti-rest under the policy puHHCH, unii-KS it 

 is made part of the contract of the sale, so that it will be cunsidcred in 

 -u court of equity as an aHHlgument." Moreover, si-ctlon 51 of the Marine 

 Insurance Act, lOOU, provides that "where the usaurcd bus piirti-d with 

 his interest in the goods anil has not before or at the lime of bo doing, 

 expressly or Impliedly agreed to assign the policy, any subsequent asslgn- 

 ment of the policy Is inoperative." Buyers seeking redress tor a loss are 

 more likely to find thcniHclvcs up against a State Department or on 

 insurance company or «u underwriter anxious to escape llalilllty by test- 

 ing the validity of the assignment than a contumacious Hbl|i|>cr, and 

 should at least protect themselves in cases where they do not actually 

 get tlie iiollcies, by obtaining an agreement signed on behalf of the ship- 

 per to assign them upon request. Nor should It be too readily assumed 

 that In any event It Is not necessary to take any steps of this kind with 

 regard to the war risk policy. According to the Insurance Act, in the 

 absence of express stipulation, the Insurer is not liable for any general 

 average contribution where the loss was not Incurred for the purpose of 

 avoiding a peril Insured against. Where, therefore, there Is a general 

 average arising out of circumstances connected with hostilities, the as- 

 sured would be unable to recover his contribution to tlie loss from the 

 marine policy if consequences of hostilities are expected thereby. Con- 

 tingencies in which general average could arise from hostilities or the 

 consequences thereof can be readily conceived. 



As an example of the unlooked for circumstances arising out of the 

 new mode of payment It may be mentioned that a leading firm of 

 insurance brokers with special wood trade experience have Issued a cir- 

 cular to their clients stating that in their opinion importers have no 

 insuralde interest under sale contracts entered Into with the stipulation 

 that payment shall only be made on delivery of the goods at the pnr( of 

 destination, and that consequently having no insurable Interest their an- 

 ticipated profits disappear in tbc event of loss or capture. Without 

 necessarily endorsing this view, it Is fairly apparent that the legal and 

 other effects of the payment on arrival clause require further inveslluii 

 tion at the bands of the importing section of the timber trade, assisted 

 by expert advice, in order that it may seem that buyers are in all re- 

 spects properly protected. Meanwhile It cannot be too strongly urged 

 that buyers should, for their own protection. Insist upon the inclusion 

 with the documents of botli the war risk and the marine risk policies 

 and stipulate accordingly in making their contracts. 



Will Investigate Hardwoods 



S. C. Pogliano of Huonos Aires, Argentine Kcpublic, South 

 America, lias been spending the last few weeks in eastern points 

 making Ms licadquarters at New York. Mr. Pogliano is interested 

 in investigating the possibilities of marketing American hardwoods to 

 South American countries and has written the following letter on 

 this question: 



1 am paying a visit to this country because I could observe a good while 

 ago that much can be done in Buenos Aires handling this line as I 

 intend, principally oak. I have deeply studied the latter in my city, 

 and came up iiere with proofs, being in condition now to assure any- 

 body that tile business I have through hands Is not only a good one, 

 but better still than what I might expect: the details which I became 

 familiar with during my short sojourn in this country authorize me to 

 afiirm so. 



In Buenos Aires we know three qualities of oak : the American, the 

 Japanese and the Hungarian oak. With reference to the Japanese, it is 

 imported down there in logs and in small quantities for lack of commer- 

 cial relations ; the American and Hungarian oak controlled up to now 

 our market, being the former used in furniture, coffins, chairs, etc., and 

 the latter for high-class work for being considered the best and therefore 

 the most expensive. 



Now, because of the European trouble, tbc Hungarian oak cannot be 

 found at any price, and I could observe such an oak can be obtained 

 here at lower prices and as good as the Hungarian one. 



I am not a buyer myself. I came up here Just to make connections 

 with some reliable firm desirous to undertake such a business, wherein the 

 profit, as per proofs at hand, is very high and the capital Invested a 

 small one. 



It Is understood I am prepared to give any kind of references and 

 satisfaction to any party interested In it. , 



Figured Gum for Sho-vv Windows 



'What are generally considered to be the finest show windows in 

 New Haven are finished with figured red gum or hazel. The wood 

 possesses all the beauty of Circassian walnut, but is more subdued 

 in tone and gives a pleasing cfifect. 



