Moors v. Drury

• Decision Date: 13 September 1904
• Citation: 186 Mass. 424,71 N.E. 810
• Parties: MOORS et al. v. DRURY et al.
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court

186 Mass. 424

71 N.E. 810

MOORS et al. v. DRURY et al.

Supreme Judicial Court of Massachusetts, Suffolk.

September 13, 1904

The claim of J. B. Moors and others, composing the firm of J. B Moors & Co., bankers, against the assigned estate of Fred A Houdlette, was disallowed by the court of insolvency, and Moors & Co. appealed to the superior court, which found in their favor, and William H. Drury and another, assignees of Houdlette, bring exceptions. Exceptions overuled. The letter of credit of Moors & Co. and the letter to Moors & Co. from F. A. Houdlette & Co. are as follows:

'J B. Moors & Co.

'Letter of Credit.

'No. 3,801. Boston, Nov. 22nd, 1892. Messrs. Thomas & Stirling, Liverpool--Dear Sirs: We hereby authorize you to value on Messrs. Morton, Rose & Co., of London, at four months date against goods for any sum or sums not exceeding in all Two hundred & fifth pounds Sterling say 250 Sterling, for account of Messrs. Fred A. Houdlette & Co., Boston, Mass.

'Drafts, with advice thereof in duplicate to Messrs. Morton, Rose & Co., to be drawn in Europe and negotiated prior to May 1st, 1893 for the invoice cost of Merchandise including Shank Steel to be shipped to Boston, Now York, Philadelphia or Baltimore in the United States or to Canada, and to be accompanied by Bills of Lading to our order, with abstract of invoice indorsed thereon. Consular invoice with one Bill of Lading to be sent us direct by vessel or mail.

'Proper insurance to be effected in Boston by Messrs. Fred A. Houdlette & Co.

'We hereby agree with the drawers, indorsers and bona fide holders of Bills drawn under and in compliance with the terms of this credit that the same shall be duly honered upon presentation at the office of Messrs. Morton, Rose & Co., in London.

'Please sign Bills as drawn under Credit No. 3,801, dated Boston, Nov. 22nd, 1892.

'Yours very respectfully,

'[Signed]

J. B. Moors & Co.'

This credit was cabled to Messrs. Morton, Rose & Co., London, November 22, 1892.

Page 2 of letter:

'Boston, Nov. 22nd, 1892. Messrs. J. B. Moors & Co., Boston--Dear Sirs: Having received from you the Letter of Credit No. 3,801 on our account, of which a true copy is on the other side, we hereby agree to its terms, and, in consideration thereof, bind ourselves to furnish you, fifteen days before the maturity of the acceptances under it, with first-class Bankers' Bills of Exchange, for the same amount at not exceeding sixty days' sight on or payable in London, and bearing our indorsement, or to pay the equivalent thereof in Cash at the current rate of Exchange for first-class demand or sixty days' Bankers' Bills; and, upon delivery to us of Invoice and Bills of Lading, we hereby agree to pay you in cash, at the current rate of exchange for first-class Bankers' Demand Bills, the amount of the acceptances given against same.

'It is understood by us that your Commission for acceptance under this Credit is to be (1 1/4%) one & one quarter per cent., and that when the balance of Interest in account current is in debit, you are to charge the Bank of England rate and allow us one per cent., less, when the balance is in credit, and that we are to effect insurance on said merchandise, payable to you in case of loss, to an amount sufficient to cover your advances or engagements under this credit.

'We hereby pledge to you, also hereby giving you a specific claim and lien thereon, all Merchandise, and the proceeds thereof, for which you may have paid or come under any engagements by reason of this Credit, also all Bills of Lading and all Policies of Insurance, with full power and authority for you take possession of and sell the same, or any part of same, at your discretion, for your security or reimbursement; and to charge same with all expenses, together with your commission for sale or guaranty.

'Any security which may be held by you hereunder, may be held and applied by you to secure also any other indebtedness or liability existing, or which may hereafter exist, from us to you; and we further agree to give you any additional security that you may require.

'Any goods imported under this or any other Credit issued by you for our account, or their proceeds, whether the draft against same shall have been paid or not, or whether the goods shall have been delivered to us or not, may be held by you as general collateral security for our account with you upon the terms and conditions herein contained.

'This obligation is to continue in force and to be applicable to all transactions, notwithstanding any...