Is it the universal custom of shipping companies to pay all claims for short-landed cargo at the rate of exchange prevailing on the date of the ship's arrival in port? This was the important point raised in an action which came before Judge Lobingier at the U.S. Court last Friday. Plaintiffs were the American Sales Corpn., suing the U. S. Shipping Board Emergency Fleet Corpn., and ¢ Mail Steamship Ca. for. merican currency) and Tls. 9 in respect of 146 bundles of corrugated concrete reinforcement bars, part of a shipment of 1,460 bundles, short-landed in Shanghai. Defendants admitted that the merchandise was missing when the str. West Calera reached the port in June, 1920, but alleged that payment of the claim had been made in full at exchange 100}, the rate prevailing upon the date in question.
Mr. F. J. Schuhl appeared for plaintiffs: Mr. J. B. Davies and Mr. R. T. Bryan with Mr. A. FE.
vddon for defendants.
Opening the case, Mr. Schuhl said he claimed the difference between Tls. 1,740 and that amount in gold dollars at the rate of exchange prevailing to-day.
Mr. Davies, in reply, said the amount claimed was not large, but the principle involved was vital not only to shipping companies, but to insurance people. He proposed to call evidence to show that it was the universal custom, and "had been from time immemorial," that all claims paid by insurance companies were paid on the basis of exchange on the day the ship arrived in port.
R. P. Meyer, a German subject, the only witness for. plaintiffs, said he was connected with them in 1920. The rate of exchange when the ship arrived was 582. The transaction was entirely in gold dollars. Witness—produced a contract between plaintiffs and a Chinese dealer, which was in American currency.
For the defence, Mr. Davies said they had paid the claim in full with a cheque for Tls. 1,704, which was equivalent to plaintiffs' claim in gold dollars at the ate of the day on which the West Calera arr Shanghai. De-lants contended! that this was custom of all shipping companies operating between the United States and foreign ports, cularly between America and China. Evidence to prove this would be called.
Mr. J. C. Hill, Pacific Mail Steamship Ca., examined Davies, said he had been in the business—in San Francisco, Yokohama, Hongkong, Manila and Calcutta, and had handled many claims.
After this claim had been allowed will you state why you
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