Minnesota Central Railway Co. v. Morgan
New York Supreme Court
THE plaintiff is a railroad corporation, incorporated by the state of Minnesota. The defendants were brokers, residing and doing business in the city of Hew York. In October, 1863, the plaintiff", desiring to purchase a quantity of railroad iron in England, applied to the defendants to sell a letter of credit on George Peabody & Co. of London, the avails of which were to be applied in payment for said iron.
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THE plaintiff is a railroad corporation, incorporated by the state of Minnesota. The defendants were brokers, residing and doing business in the city of Hew York. In October, 1863, the plaintiff", desiring to purchase a quantity of railroad iron in England, applied to the defendants to sell a letter of credit on George Peabody & Co. of London, the avails of which were to be applied in payment for said iron. The defendants were entitled to a commission of half of one per cent for the advance thus made, and, as security for the repayment of the amount so advanced, they were, by the agreement…
1Opinion of the Court
By the Court, Mullin, J.
The insurance of the iron was effected, as well to secure the defendant's for their advance to the plaintiff by means of the letter of credit as for the benefit and advantage of the plaintiff. In effecting the insurance, the defendants acted at the request of and as agents for the plaintiff, and as a necejssary consequence the *220latter became liable to the defendants for the premiums paid tó the insurance company. It was wholly immaterial who advanced or became directly responsible for the premium. The plaintiff was the party benefited, and liable to pay or refund such…
2Cited by3 opinions
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- Boardman v. GaillardNew York Supreme Court · 1874
- Newcomer v. BrooksBaltimore City Circuit Court · 1901