The Archive · 1875

Sir John Smale on Return Commission

We give below the concluding remarks of Chief Justice Sir John Smale, in the case of Melchers and others v. Osborne. The remarks apply peculiarly to the practice of return Commissi the special contract it right to add that, as an action against the ship or hich practically though not personally this is, it rust fail as being a concurrence between the merchant and the captain to gi to th a benefit which pelon, owner only; to charge th sion at 5 per cent. and to tain personally 1} out of that commission, doing the work at 3h per cent., and any agreement embodying a contrivance that thus takes the balance between that and 5 per cent. out of the pocket of the shipowner and puts it into the pocket of the captain, is contrary to the policy of the law, and is void.

Te is one of the' first principles of law that no agent, be he Captain of a vessel, consignee, broker or factor, or in any other capacity, can obtain out of his employment any benefit beyond which he has expressly stipulated for rineipal; that he dace, it is a fraud, by him or his employer or constituent; for instance, if a Captain should pay only 34 per cent, commission to a local agent, and if he charge his employer 5, that is fraud on his employer. To put it more palpably, if he goes to a afore and pays £3.10 only for stores, and if he 5 to his employer, his conduct would: great trouble; but where is the difference, if he says to the storekeeper "charge the ship £5 but give me £1.10 and if the storekeeper complies with could th even the 3.16 his request, and if the money remains unpaid,

Would it jpowner to contract is rotand that this kind of contract, operating as a premium, or bonus, or commission, or cumshaw, is very common, and, therefore, is thought commercially to be allowable. It is my duty to say that, according to that high moral code—the Christian standard,—which is embodied in the law of this land, it must be ignored in our Courts.

Tf to an agent of any kind, commi joo, or premium, or share of profits, or discount is a allowed by storekeeper, or merchant, or surance office, or Dock Corny peak of business brought, it is either void against the principal, or he may at his option adopt it, and recover all t Teo advertisements in nei East, containing offers of enormous promin payable to persons bringing business, which Bo one ever saw in Euro It would be well if companies would forego such excess petition, and return to that mode of ing business which is alone compatible with, healthy commerce."

Text read from the printed page and cleaned; old type leaves the occasional error.

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