The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-05-31
In AND ABOUT THE CITY.
A BIG COTTON CASE.
The Result OF the Gruning-H Hit Case to
Settle Many Questions.

A BIG COTTON CASE.
The Result OF the Gruning-Hitt Case to
Settle Many Questions.
I. z. Ravenel, Esq, returned yesterday
morning from Macon, where he went to try
the case Of Gruning & Co of Liverpool
against Hit & Co. of Savannah, Americas
and Albany The case was tried in the
United States district court, Judge Speer
presiding.
Gruning & Co. of Liverpool, England,
brought suit against Hit & Co. for an al
legged breach Of two contracts, one for the
non-deiivery Of 9o0 bales of cotton at Cor
ona, Spain, and the other for the non-deliv-
cry Of 100 bales at Havre,
France, both deliveries to be made
during October and November, 1887.
The two contracts were on what are known
as the ordinary C. i. t. and per cent"
contracts under the rules Of the Liverpool
Cotton Association, limited, in each Of
which it was provided that upon a breach
OF the contract the buyers might invoice the
cotton back to the sellers at price
to be fixed by arbitration under the
rules of the Liverpool Cotton Association,
limited, for the amount of which sight
draft was to be drawn. Hit & Co. having
failed TO deliver the cotton according to
the contract, Gruning q Co. submitted the
matter to arbitration in Liverpool over the
protest Of Hit & Co.. who declined to ap-
pear, and secured an award in their favor
on each contract, the awards amounting to
about $1,000, for which Gruning a. Co.
drew sight drafts on Hit a. Co. The suit
was brought for breach of contract and also
on the awards r..
Upon the hearing of the case on
demurrer Judge Speer sustained
the demurrer SO far as the counts on the
awards were concerned, but allowed tee
case to proceed on the counts for breach Of
contract.
In deciding the demurrer Judge Speer
held that, Notwithstanding the plaintiffs
had agreed TO submit the matters in dispute
to an arbitration board to be composed of
members of the Liverpool Cotton Associa-
ton, limited, yet the defendants had the
right to refuse to appear before the arbi-
traitors, and therefore they were not bound
by the decision of the arbitrators.
hL' The evidence was voluminous, car
rying as it did the correspondence
and cablegrams that passed between
the parties for some months previous
to the alleged breach Of contract. besides
the codes by which to read the cablegrams,
which were in cipher.
The plaintiffs proved the contracts and
failure to deliver the cotton either at
Corona or at Havre, within the time agreed
Oh, dilO ISSteu LU6lT case.
The defendant claimed that they had not
complied with the contract because the
plaintiff had not furnished them with con-
tirmed credit, which they had demanded
before the time for the delivery, thereby
rendering it impossible for them to deliver
the cotton, as they could not negotiate
the bills of exchange to be
drawn against them without the
said confirmed credit. The plaintiffs re-
nj hot M hnI
asked, but that if it had been demanded it
would have been promptly furnished.
Upon reviewing the testimony upon this
subject, which consisted entirely of cable
grams, the court held that the claim that
confirmed credit had been asked for and
refused was not sustained; and as the de-
PENDANTS did not attempt to show that they
had really delivered the cotton, but
Justified their failure to de-
liver on the idea that confirmed
credit had been refused. the court instructed
80 syGFy that the plaintiffs had made out
their case, and the only question for them
to determine was the amount of damages
which tine plaintiffs should receive by rea-
soa Of non-delivery of the cotton. Under
the law, this was to be ascertained by taking
the difference between the price as agreed
upon in the contract and the price Of the
cotton at Corona and Havre at the time
when the cotton ought to have been deliv-
cred. The evidence having shown that the
price OF cotton had gone up considerably
between the time the contract was made and
the time the cotton ought to have been
delivered, the amount of tine verdict should
be the difference between the contract price
and the price at the time and place of de-
livery. Under this charge the jury retired
and brought in a sealed verdict, the amount
| OF which has not yet been ascertained.
The case was hotly contested and con-
sumed considerable time in its trial, having
been commenced Friday morning, a week
ago, and lasted until Thursday afternoon.
The matter in dispute being the construc-
tion Of the relative rights of the buyer and
seller under the sc. i. f. and 6 per cent"
contracts the case has excited consider
| able interest among cotton mer-
chants and business men, and. the
contest has been closely watched
| Judge Speer, recognizing the importance
of the case and the influence which its de-
cision might have on the cotton trade be-
tween the ports of the United States and
Liverpool. patiently heard the questions
deliberately argued, and his rulings were
made and rendered after careful and ma
tured deliberation. The question sof con-
| tirnled credit is right to be exercised not
in an unreasonable manner, and not at the
last moment, as was the case with the Hit
company. The decision of Judge Speer will
probably decide other controversies of like
| character where similar questions are in