The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1875-04-23
Replies and Decisions O1 Questions hf
Practical Nature.


From the New York Journal Of Commerce.
Question We have read with inter
est and profit yotir answers TO cores
pondents regarding liability, 80, when
goods are lost by fire before loading but
after bill Of lading has been signed.
Please give us light on another point.
namely: "When goods fcargO) are sent
by ahippers 10 a vessel by order Of her
agents, and are destroyed or damaged
by fire or flood while waiting to be Ia
ken on board, has the ownerof thegoods
or the vessel to stand the loss in case
there is no insurance. Also, il vessel
has discharged goods and they are burn
ed before being taken away from a onQ
side, whose loss is it,
Reply.-The responsibilitv Of Che shin
begins when delivery has actually been
made and accepted either alongside or
upon a contiguous wharf. Aud the re-
sponsibllity does not cease until the
owner or consignee has had reasonable
time in fair weather to remove his prop-
erty, after notice that the same has been
discharged from the vessel and has been
placed where he may examine and re-
ceive it. In the intermediate period tho
ship is responsible.
Question. "A is in business and wants
more capital. he asks B to lend him
some money. B says he will if he can
get Q to indorse his note. A draws a
note payable on demand to the order of
/ @. Q indorses the note and lets A have
the money. In about year or SO after
ward, B quits business in an insolvent
condition. This money was borrowed
by B in 1859; A does not make any at
tempt to collect the money Of b until
after the note is over four years old. and
then does not succeed in collecting any
thing. Now is G still liable rs indorser
on that note, seeing 30 long a time
elapsed before b tries TO collect it2 Is
there any time under the above circum-
stances when O would cease to be liable
for the payment of the note as indorser2
By answering the above you will much
obhge
AN OLD sUBacRmEn.
Reply.-We have answered this in
substance many times. The indorser Of
an ordinary demand note is only held
for such brief period as may be necessa-
ry to collect it by due diligence. But
in the case cited the indorsor is really n
joint maker for the purpose of raising
money to invest in business where Il
is likely to be for an indefnate period.
We have decided, in similar case. that
he is only released Qike the nominal ma
kerr by the statute of limitations. If he
understood fully the object of the loan.
and meant anything by his signature to
the note, he meant to be surety for the
payment during all the period for which
the money might be needed, and until
it was repaid.
Question.-Section Is of the act of
February 8, 1875, provides that bank
drafts, &c, are to be stamped. Does
tnis, or not, apply to drafts which ex-
change bankers may draw, say on Eng
land for instancel Your opinion will
obhge, SuBson1BEE.
Reply.-All drafts now drawn in this
country on any bank or banker, no mat
ter where they are payable, at sight, OF
on time, must bear two-cent stamp, or
the issuer is liable to a penalty.
Question:. A gives to b a note for
So, 900, payable one day from date; sub
lsequently b gives to O draft of 80 days
on A, for 5000 against said note. A
accepts the draft, but does not paw it.
Now what l want to know is, can A de-
mand the amount of the draft to be in
dorsed on the note before the draft is
due, and thereby deprive d OF his inter
est on said note, till the expiration of the
ninety days, or maturity OF the draft9
2. Is A obliged to accept BIS draft
before payment is duel Respectfully,
O. g.
Reply.-If the note was on time and
not yet matured, A would run some risk
in accepting draft, while the original
debt was still negotiable. We know of
a somewhat recent case, where the cred
itor who held the note of debtor for
$4,000 wrote to him that it was too
large for discount, and asked The wouId
accepta draft for half the amount due at
the same time, and to be applied toward
ut. The debtor consented, and when the
draft came due he found that both were
in the hands of third parties for value.
and he had $15, 600 to pay instead of the
original sum- But as a note one dav af-
ter date soon becomes overdue. and ia
thereafter, in ordinary circumstances.
subject to the equities between the ma
ker and the payee, the former would
run less risk in acceptance. The draft
if drawn from date, and not from sight
need not be presented until its maturity,
and the better way would be to instruct
@ not to present it for acceptance, but
only for payment when it became due.
But if it is presented, A must accept, or
Q protest it. B is not required to in
dorse the amount upon his note, unless
O will take the acceptance without re-
course to him. If the payment of the
draft is still at BIS risk, and Endorsement
is made, it should state the exact fact
that ga has accepted draft in favor of
Q for So, 900, due in 80 days from the
date thereof (or from given date).
which when paid is to be applied on the
within" " If A accepts the draft, he is
entitled to such an Endorsement, and il
would work no injury to either party,
and involve no loss of interest IN the