The age-herald., 1900-10-01
|. G N. Railroad Calls on Surety
 Company For $18,000.
MANY DRAFTS WERE UNPAID
Agents of the Railroad Company All lowed Brokerage Concern to Re- ceive Cars of Supplies Without
 Presenting Bills of Lading

Louisville and Nashville freight depot case, mention of which was made in the Age Herald last Thursday.
 certain freights were delivered by the Louisville and Nashville Railroad to mer- chant without his presenting a bill of lad Ing and without payment for the same; simply on promise to pay Payment was not made. The railroad thereupon calls upon the companies in which its local agent and cashier were bonded to make good the amount. The bond companies refused on the ground that such leniency has been the custom of the railroad company that it's local officials were warranted by instruc- tohs In so doing, that therefore they were In no sense negligent, and in consequence the bond company is not liable, but, by vir- tue of it's custom, the railroad company itself must stand the loss, with only the recourse of recovering from the merchant to whom the goods were delivered. As the merchant in question has not paid the &C., count, and is away from the city, the con- test Is one between the railroad on the one hand and it's local agent and cashier and the bond company guaranteeing them on the other.
 The Case In Detail
 It seems that the Southern Brokerage Company has had much freight consigned or shipped to Birmingham. The usual cus- tom of the western shipper of meat, grain and so forth, which are cash In the trad ing world. is to send the bill of lading, for a car of goods, attached to a draft on the consignee to a local bank. When the con sgnee pays the draft the bank delivers the bill of lading which the consignee then pre- sents to the railroad freight agent and gets his car of goods.
 It seems that the freight agent or the local freight cashier has been delivering cars of goods to the Southern Brokerage Company without the presentation of bills of lading, on the promise on the port of the brokerage company that the drafts in the banks would be paid later and the bills of lading would then be turned over to the railroad agent. It seems further that the brokerage company's indebtedness to the banks in order to take up the bills of lading for cars of freight already delivered by the railroad up to about $15O0o. The banks, representing their western correspondents, called upon the railroad for the payment of the drafts or the delivery of the goods rep resented by the bills of lading attached to the drafts.
 The Southern Brokerage Company not having paid the drafts and Its representa- tive being out of the city, the railroad hav- ing delivered the goods was forced to pay the drafts.
 The railroad then called upon its local representatives, who had delivered the freight without receiving the bills of lad ing, to make good the amount-about s15,- 900, and with freight added making about SIS, 900.
 They refused, and the railroad thereupon demanded payment of the companies bond ing officials. These companies sent repre- sentatives here to investigate, and 1t is un- derstood they likewise refuse to pay both the bond companies and local agents hold ing that local railroad officials acted under authority of the general officers of the railroad in delivering the goods, and that therefore If the brokerage company can- not or does not pay that the railroad com pany itself must stand the loss. This is now the issue in controversy. In the meantime the representative of the South ern Brokerage Company has been absent from the city several days, leaving here a physicians certificate that he is i'll and therefore found it necessary to absent himself from the city for time. Though the brokerage comapny has not paid the amount for the goods, it is said by at torneys that whether it makes payment in future its officers are in no way indictable, the delivery of the freight simply being a loan on the part of the railroad. It may be that the Southern Brokerage Company will be able to make full payment.
 But however that be the facts are that the goods were delivered without bills of lading the railroad had to pay about S5OOO and freight charges, and has demanded re- pav a ioIc xxha do livered the goods and the bond companies guaranteeing them. The latter have re- fused on the ground that they had author- ity to deliver the goods as such were de- livered and here the matter rests, pending further action on the part of the railroad company.
 Statement of Local Officials
 A reporter for the Age-Herald called on Agent John Cox and Cashier Robert Brown of the Louisville and Nashville Railroad at their residences last night for the purpose of getting statements from them bearing on the failure to collect for shipments deliv- cred to the Southern Brokerage Company. MT. Cox said he had no statement to make, as he was not responsible and MT. Brown said he had written authority to make such deliveries
 Mir. Cox met the reporter at the door and in reply to a question said: T have noth- ing to say I am not responsible for the of money"
 "It is said that you claim to have had to deliver shipments to the Southern Brokerage Company without re- uuiring the payment of the charges in ad- vance. Is that true?'
 q never made any such statement" was the reply. "The matter Is being investigated now" he added, land we will be ready in a day or two to make full statement of the matter. Until the investigation is com- pleted, I do not care to say anything"
 The reporter called on MT. Brown at his home in Elyton. Mir. Brown has been suf- fering with his ears for the past week or two. and last week had an operation per- formed on them. For this reason he has been absent from the office a portion of the time In reply to questions he said:
 q had written authority from the gen. eral office to deliver the shipments to the Southern Brokerage Company, and the bond company holds that I am not respon- s,ble for the amount that company owes the Louisville and Nashville Company. Fur ther than that do not think it advisable for me to say anything at present. The matter is now being investigated"
 Mr. Brown stated that the value of the goods delivered to the Southern Brokerage