The Providence news. (Providence [R.I.]) 1891-1906, 1893-04-03
AN IMPORTANT CASE.
JOHN G. BALDERSTON rs. THE M
TIONAL RUBBER COMPANY.
The supreme Court Called Upon To De-
cidc an Important Point In the obi
cations of' Contract.

The supreme court enter aimed last
Saturday a case which Is OF paramount
interest 10 business men throughout the
state. involving a suit by John &. Bal
derston ct al, against the National Rub
ber company ct al.
The compl ainants, who were commits
sion merchants doing business In Boston,
entered into contract. dated April :,
1884 with the National Rubber company,
the assignor of the respondent, Samuel
Il. Colt, In which, among other Things,
the National company agreed To assign
their entire product of rubber boots anu
shoes with cert ain exceptions, 10 the
Balderston firm and to pay them del ere,
dere commission OF per cent: upon all
sales effected by them. the Balderston
company agreeing Ito advance To the
National Rubber company at least 500 900
per month upon the basis Of 80 per cent:
of the market value OF the boots ana
shoes assigned to them, both partles
agreeing hat the prices for which ihe
goods should be sold were TO be nxei
from time to time by the Nationai huD-
ter company, upon consultation WIN the
| Balderston firm.
This agreement was substantially car
ried out by both parties until OCT. 10.
1857, when the National company assigned
| for the equal benefit of creditors To the
respondent, Samuel Il. Colt. Inc com
| nad advanced under the terms OF the
| contract (that is, upon a basis OF 90 per
| G mt. of the 90 IDS assigned) the total
| sum OF $6ll. .440. 50, including interest,
! upon goods not yet sold.
Under such conditions, in view OF this
| supposed margin or 20 per cent, less the
| 8 per cent del credere commission III
was natural that the respondent, Colt,
| should conclude that considerable bal
| ance would be due the assigned estate
| from the Balders on firm when theii
account should be closed after the
sale Of goods that they had
| hand. For various reasons tht $.
goods were dispersed slowly and at
figures considerably below Ine invoic,
| prices, while the commission OF com
| plainants, interest, insurance aud Other
| items, added heavily to he credit side ol
the account. The result is that when the
| bill was brought and when the goods haC
| ing to the complainants' claim "A large
| balance on their side of the account.
The Balderston firm In their pill asks
for "a divideud from the assIgaee upo
the whole amount OF advances made Dl
them upon goods unsold at the time o
the failure of the National Company, the
amount AS above stated being SOIL, 4iO. 81
The Ma ional company ciaimed tina
! these advances did not Constitute pres
ent debt, and that none existed until Il
was ascertained after the sale OF th'
goods consigned, thati there was bal
ante in favor of BaldersIon.
Respondent ColC contends further tina
Balderston, as president and director O
the company, never Included these aC
va ces IA a uebt OF the company whe
signing the annual returns OF the com
pa y.
The decision Of the court has not ye
been made. The solicitors for the n
sponden are Francis Colwell, Waite
Ii. Barney and Samuel Morris, Jr.