The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1867-10-24
COL TBIA,



Hspsonage Of nIsrcnntiIe Agsnoies..
Many ofSoun readers will recollect,
for some time before the war, the
establishments OF q spy system that
was inangurated IN. New York, and
perhaps other commercial cities of
the North, by which the home busi-
ness of, the hdmblest trader with
these commercial centres was laid
bare to every jobber with whom he
dealt, SO perfect was Che arrange
. ment, that o merchant here could not
lose $50 or 300 on an unluoky spe-
culation or venture, that it was not
known Immediately in New York.
) The SPY, or agent in town or city
was scarcely ever known, but they
were generally, If possible to obtain
them, taken from the legal profess
sion, for. the reason, we presume,
chat lawyers had q better opportu-
nifty to scent out a mans financial
condition than any other class.
: But a case has been decided in
New York, that may have whole
some effect in, at least, restraining
this unwarrantable surveillance over
merchants private business. A
mercantile firm, doing business in
Ohio, brought suit against Tappan,
of New York, the proprietor of a
mercantile agency" Several agents,
or fcierks,; were employed by the
concern, and by means of the in
formation given by them, the credit
of the plaintiffs was seriously injured,
and they brought an action against
the defendant for damages, aud OBJ
tanned q verdict for $4,000. Judge
Nelson delivered the decision, saying
that the main question in the chse, as
regarded the defendant, was whether
or not he was exempt from the con-
sequences of the publication of the
report on account Of the privileged
character. He charged the jury,
that if the defendant had communi-
Gated the information to o person
applying to him in good faith, the
communication might have been u
privileged one; but that the publicity
given it, by recording the libelous
words in a book. to which others had
access, and to whom they were COM
municated, though standing in the
relation of clerks, deprived the COM
munication of its otherwise privi-
legged character.
=, Judge Nelson said TINT the case
inyolved q very important question
in its practical operation. On this
point. we quote from his decision:
s'On the one hand, to legalize
these establishments in the manner
and to the extent used by the defend
ants, is placing one portion of the
mercantile community under an or
ganized system of espionage and in
quisition for the benefit of the other,
exposed, from the very nature of the
organization, to perversion and
abuse; and, on the other, to refuse to
,legalize them may be restricting in
juriously the right of inquiring into
the character and standing of the
customer asking for credit in his
business TRANSACTIONS. We are strong
ly inclined to think, if the establish
ments are to be upheld ut all. the
limitations attached to them by the
court below is not unreasonable, to
wit: that it must be On individual
transaction, and not an establishment
conducted by an unlimited number
of partners and clerks"
While we are gratifed with the
decision. and suppose that some
'tcredit" will always be sought by
dealers, yet. if they could-and they
could. if they would-adopt the cash
system, both in buying and selling,
this base espionage would soon come
to an end. Especially would we re-
commend this course to our Southern
merchants in all future transactions.
ALL GoNE.-The extra appropria-