The daily crescent. [volume] ([New Orleans, La.]) 1848-1851, 1851-05-30

ton OF the policy by the defendants on the freight
OF the Russia and that they at the time Of its
execution, and from thence until, and at the time
Of, the loss, interested in the freight to amount
Of $25,2sO ~: That Knapp was at said date. and
thence until the time Of the loss, the owner Of the
Russia, and Of the freight and interest therein,
subject nevertheless to the interest Of Paradise,
Lawrason & Co. and the insurance effected
for their own to the extent Of their said inter-
est and for the remainder for the and benefit of
Knapp, by whom they, Paradise Lawrason &
Co, were duly authorized to act in the premises.
The plaintiff contended in the court aeow, and
here that if the ship was destroyed by the barratry
of the MASTER it did not affect the right to recover
far their interest concerned, but was only
available to the underwriters guoad the interest Of
Knapp.
On the other hand, it is contended bv the de.
PENDANTS, first that Paradise, Lawrason e. Co. are
not insured by the policy and this proposition they
rest upon two grounds. First, that Paradise Law
rason e. Co. had no insurable interest in freight,
which is the subject of the policy. Secondly that
even II they had an insurabe interest in freight,
they did not insure themselves in point of fact
They also contend that even if they insured,
under the circumstances of the case and the terms
OF the policy, for their own interest, they cannot
recover unless Knapp could, because the policy is
indivisible.
Before considering this proposition, it is peces.
sary to notice the relations which existed between
Paradise, Lawrason d Co. and Knapp, before and
at the date Of the policy.
In 1849, at which time there was great ex cite
ment on the subject of California attracting thi,her
crowds OF emigranis, and exciting also, in an ex.
traordinary degree, spirit of mercantile adventure,
the plaintiffs and DR.. Knapp became jointly inter-
ested in the ship Dalmatia and dispatched her to
California on joint account in the month of OctO-
ber. Knapp and the plaintiffs also shipped cargo
In her for joint account In November, he pur.
chased the Russia at the price of SIG 600, paying
$1,000 in cash, and the residue in his note at ten
months. In the same month, Paradise, Lawrason
d Go. accepted, for his accommodation, his seven
bills, for total sum of Sl9 900, at ten months and
ner, for him, another bill for $4,000. Att date of
these nine acceptances, written contract was
signed by Knapp and Paradise, Lawrason g. Co, in
which, after reciing their acceptance for his
accommodation, and their understanding that he
was to furnish Paradise, Lawrason a. Co. the
means of taking them up at maturity he, to secure
them assigns to them his half interest in the freight
list OF the Dalmatia, then on her voyage to Cali
fornia, his afnterest in all goods shipped per the
Damatia, on joint account, and in their proceeds,
and all his intereet in all policies taken out BY
Paradise, Lawfason Co., for joint account on the
Dalmatia, her freight and cargo. "Aso the freight
list OF the ship Russia, about sail from this port
to San Francisco, California /; also all my interest
IN and to all policies OF insurance TO be taken
on the said ship Russia, her freight list, proceeds
of cargo, if any should be shipped on her on nv ac-
count ETC. All which proceeds or the balance there.
of, after paying the said drafts, are to be paid over to
me, by the said Paradise, Lawrason & Co., who
hereby accept this assignment, with its condi.
tions, by signing the same"
On the same day. Knapp executed in favor of
Paradise, Lawrason q Co., an instrument by which
he constitutes them his agents, to act for him in all
mercantile transactions in California which may
arise out OF any shipments of goods already made
or to be MADE to that country; to dispose of the
goods and collect proceeds to collect freiphts of
any vessel he may consign to them there, and gen.
orally to manage and protect his business and nte-
rests in California. In consideration of the mer.
camille services Of his agents, he agrees to pay
them ten per cent on the whole of the freight list
OF the Daimatia, excluding property shipped on
joint account; on proceeds Of stores and articles
shipped board the Dalmatia on Joint account if
sold, ten per cent; on proceeds of the Dalmata il
sod ve per cent. He also agreed to pay the usual
commissions charged in NewOrleans on the entire
freight list of the Russia, then being loaded and
consigned to Paradise, Lawrason & Co., in the port
of NewOrleans, well the whole cargo, in
cluding that which might be shipped by him on his
own account-the Russia to be consigned to Para
disc, Lawrason q Co., or their substitutes, at San
Francisco. 1t was further stipulated, that in case
OF loss, partial loss, of either the Damatia or the
Russia, Paradise, Lawrason " Co. were to be paid
five per cent for settling insurance, according to
custom"
On the 24th January 1850, notarial act was
signed by Knapp and Paradise, Lawrason & Co.,
in which he acknowledges that they have accepted,
for his accommodation, his bill for $4,000, at nine
months from 22d January, and that he is to furnish
means to take it up at maturity. He refers to. the
agreement of the 9th November. and places this
bill q" IN the same position the others, by
which the said acceptors will be secured by the
assignment and sureties conta ned and set forth in
the said private agreement"
The policies in these were, as we have
already said, in the name of Paradise Lawrason
o. Co., " for account OF whom it may concern," on
ship and freight, to the amount of S34 900 There
were two other policies freight in the Tennessee
Office for total amount Of $4,000. On the 1st
February, the plaintiffs addressed letter to their
NewYork correspondent, desiring him to effect in
surance merchandise for account of F. H.
Knapp, loss, if any, payable to Paradise. Lawrason
q Co, to amount OF S25 900. The vessel sailed
on the 9Th, and was lost on the 9TH February The
acceptances were taken up maturity by the plain.
tts. During the lading of the Russia, the plain.
tffs, as knapps agents, made cash advances in the
ships business to the amount of $4,000 and up
wards In the account of Knapp with the plain
ts, they charge him the premiums paid for insur-
ance, and credit him with the amount of $l5,O0O
received on compromise from the Tennessee office
on the 18th May, 1850.
1t thus appears that Paradise, Lawrason IL Co.
had come under heavy advances Of their credit and
.h. upon the faith OF the expected freight list of
W. %nSn 'nrmal assignment was made to them for
assipnees as WseehrIag ven ,hem and which freight,
and consisnees thew had oafaaPacity OF agents
collect As such assgnees for valuable GJ. ana
ation their interest subsistng at the date of the
policy, and down to the time of the loss, they must
| be considered as having an insurabls interest in
the freight. the subject matter Of the insurance.
| We incline to the opinion that policy on
freight, 60 nonaims, may be considered covering
such an interest is above described although
the question is not perhaps free from difficulty,
| Paradise, Lawrason u Co. did not hold either the
legal or equitable title of the ship But assuming
that the interest of Paradise, Lawrason & Co., in
L. l.. L..