The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1906-01-09
BANKRUPTCY
ASSET CASE

Judge Sanford b. Dole of the United
States District Court rendered n deci-
sion yesterday of considerable interest
to business men. 1t was on a question
of title to certain goods in the mat
ter OF Y. Y. Hirose, a bankrupt. This
is the syllabus:
'In a proposition for selling goods,
where the understanding is that the
goods will he delivered to the pro-
posed purchaser upon his payment of
the price therefor. the failure of the
proposed purchaser to pay absolves the
proposed seller from any obligation TO
deliver.
THE proposed seller invoiced the
goods in the name of the proposed buy
er, but mailed the invoices to his own
agent, and instructed the proposed
buyer by mail that IL he would pay
the price Of the goods to the agent he
could get the invoices from him: held.
that the fact that the invoices Were
made out in the name OF the proposed
buyer, conferred no title on him under
the circumstances"
THE CASE STATED.
Judge Dole. in the body of the de-
cision. states the case thus:
"A petition was filed in this court
on the 23rd day of March, 1904, by ii.
Hackfeld & Co., Ltd, Hoffschlaeger
Company, Ltd, and the Seattle Brew
ing & Mailing Co., praying that one
Y. Y. Hirose, doing business under
the name of Hirose Shoten, be adju-
dicated a bankrupt, and on the 9Th
day of May, 1904, the petition was
granted and adjudication made.
Pending the proceedings, the court,
in response to a petition by said Sc
attic Brewing & Mailing Co.. made an
order on the goth day OF March. 1904,
directing that certain property seized
by the United States marshal and al
legged to belong to the said alleged
bankrupt, to wit. eighty tubs OF sake,
be sold, the same being perishable
goods; and thereafter, on the Sth day
of June, 1904, Chas. f. Clemmons, trus-
tee in bankruptcy of the said bankrupt
estate, claiming to own the said prop
erty and proceeds of the sale thereof
as such trustee, and +. e. Thompson,
attorney for the Urabi Brewing Co. n
corporation of the Empire OF Japan,
which corporation claimed the said
property and the proceeds of such
sale thereof. petitioned this court for
the determination of such controversy,
praying that the petition be heard by
the judge of this court or by some
referee to be appointed therefor, and
for such other and further relief as the
premises might require. The matter
was thereupon referred to VIM. Il.
Rawlins, referee in bankruptcy of this
court. to report facts and findings as
prayed for in said petition. The referee
filed his report on August 30th, 1905,
to the effect that the Urabi Brewing Co.
never parted with its title in the said
eighty tubs of sake, and that the trus-
tee of Y. Y. Hirose, a bankrupt, is not
entitled to the funds now In the hands
of the United States marshal.
"Thereupon, the Urabi Brewina Co.,
by its attorney, F. E. Thompson, moved
the court for an order confirming and
approving the said report of the referee
and directing the clerk of this court
to pay to the Urabi Brewing Co., or
It's attorney, the proceeds of the sale
Of the said sake. The motion was
heard, counsel for both sides being
present and making argument and re-
terrinB TO authorities.
THE TRANSACTIONS.
From the evidence which was taken
In the bankrupt proceedings relating
to the question e the ownership of
the sake at the time OF its seizure by
the marshal, the story is briefly as fol-
lows: The Urabi Brewing Co., doing
business in Japan, shipped the said
sake to Honolulu, invoicing II in the
name Of Hirose, but mailing the in
voices to their agent I'm Honolulu, a
Japanese named Doyo, with instruc-
lions to him to deliver It to Hirose
upon his paying therefor. Hlrose was
unable TO pay and to accommodate the
urabi Brewing CO., signed the neces-
sary papers for taking II out OF the
custom House, the agent Of the Urabi
brewing Co., Doyo, paying the duties
therefor. The trustee contests such a
construction Of the evidence, claiming
That there was evidence showing that
liirose had paid the duty and taken
out the goods. The evidence tending
10 such conclusion was by Custom
House employees ana was vague ana
uncertain. The testimony Of other
witnesses, particularly that Of Hirose
himself, Oyerweighs such evidence and
SATISFIES me that the history OF the case
n ~ ! have stated. Iirose had evil F.
dently, from the evidence, previously
done business with the urabi Brewing
40, but becoming Involved they took |
the precauii0n ~ sending the Invoices. /
which were IN liiroHe's name, 10 their /
agent win instructions 10 hold them /
unill lilross should pay Tor them, Al
WAS explained, lhey were made IN III .
roses name, 80 they dld not Wish 90
enter Into tho business " selling sake /
Nv ihs Hawaiian Islands ana paying
The license therefor,
THE Law coHhIDERED,
~ Ia flsar ~ ma that, under the
llInuInAlAnnaa. 40 lllla An Ihn nakn