Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-05-01
Dispute Between Shipper an(
Buyer Decided by Grain AS
ISOLATION Committee
A QUESTION OF IMPORTANCE
1t Is Held That Buyer Has No Right to
Refuse Payment Before the Car Is
UnIoaded, When the Grain is Sold
by sampIe-Another Victory For Ar
bitration.

Des Moines, May 1.-The arbitration
committee of the National Grain Deal
ers' Association, which was organ
lied during the convention held in his
city in October 1901. has decided a dis
pute between a shipper and buyer in
New York state that is of general in
terest to dealers in grain. Local deal
ers have been advised of the questions
involved and the decision of the COM
mittee.
BY exchange of letters and kilograms
a purchase was made on Jan. 18th, OF
two cars of sample oats by f. b. Mills
from w. w. Alder, for 81 cents per bu-
shell, delivered at Marcellus Station, n.
Y. The investigation showed no specia'
conditions involved, except that the
oats were to be as good as the sample
submitted. which was fully guaranteed
by the seller, Mr.. Alder. Alder ship
ped q car of oats, making draft against
the am with a bill of lading attached.
which Mills refused to pay until the
arrival of the car. Alder acceded to
this demand and instructed the bank
to hold the draft until the arrival Of the
car. Upon it's arrival Mills refused to
take UP the darft until he unloaded the
car. The correspondence discloses the
fact that several letters passed be-
tween the parties regarding this con-
%tention, and tina Alder requested Mills
to take up the draft, and he would
guarantee the oats equal to the sample
- N,-a,,, re- ~ ~ A1Jocl =, 1er n,,t1O ~; 1a.l
the station agent at Marcellus Station
to permit Mills to enter the car and ex-
anime the oats to his complete salts
faction. Mills, however, persisted in
refusing payment of the draft, until the
ear was %unloaded. Numerous letters
passed between the parties, but finally
on March 20, Mills wired Alder that he
refused the car. claiming that 1t was
not up to the sample. Alder then or
dered the car forwarded to Syracuse,
where it was sold for his account.
The contention at issue between the
parties is the difference in the amount
realized by Alder from the sale of the
car at its final destination n the
amount he would have received from
Mills had the car been accepted. to-
gether with the demurrage which oc-
crued on the car while standing on the
side track at Marcellus Station: also
the additional freight in moving the
car to Syracuse.
Accompanying the correspondence
laid before the arbitration committee
was a certificate Of inspection from
Buffalo. showing the oats graded No.
> white, in that market, and a sample
of the oats by which the sale was
made, q sample taken from the car by
the station agent at Marcellus Station.
and a sample taken from the car on It's
arrival at Syracuse. The arbitration
committee agreed that there was no
material difference between the sam
pies.
In deciding this case the committee
says that in accordance with a long and
we'll established custom among grain
dealers. which is fully known and recog-
niZe6 by all parties engages in the bus
mess, where there are no special condi-
lions made at the time, all grain ship
ments are subject to a sight draft with
bill of lading attached.
The arbitration committee holds that
When the grain is sold by sample the
draft should be paid as drawn, and the
buyer should thoroughly examine the
shipment upon its arrival, and if it Is
found that it is not equal to the sam
pie on which 1t was purchased, the SELL
er should be Immediately notified, and
the difference adjusted, but the buyer
should not insist on carrying the e1-
animation so far as to require the IN
of the car. 1t is also held tina.
the insistence on the part of the buy
er to unload the car is an equivalent TO
acceptance of the shipment.
By the decision of the committee AL
der is awarded s106.1S, representing de-
murrage, additional freight charges and
the difference between the price at
which the car was sold to Mills and the
price it subsequently brought at SYRIA
cuse.