81 F. 810 | 5th Cir. | 1897
Walter J. Suthon, plaintiff, is a sugar factor and commission merchant. John Scanned and James D. Capron were sugar planters and owners of plantations in St.. Mary’s parish, La., in the beginning of the year 1894. They were without funds to operate their plantations in that year, and they each induced the plaintiff to enter into a contract with each of them, respectively, to advance- them money for the purpose of growing and manufacturing a crop of sugar on their respective plantations; and in order to secure the plaintiff, Suthon, for these advances, each granted a mortgage on his plantation, and the statutory pledge, under Act 6(5 of Louisiana (Acts 1874), on the crop to be produced during That year, and consented that the license for the bounty on the sugar to be produced that year on their respective plantations should be taken in the name of Suthon, and obligating themselves to keep, or cause to be kept, all proper books, certificates, etc., required to be kept by the bounty laws in die name of Suthon, and to make all reports requirt'd under the bounty law and internal revenue regula rums. A t the time these contracts were made the act of congress approved October 1, 1890, was in force, and the form of the several contracts was one well known to the business community; and it was the custom of established merchants making such advances to take out licenses on the plantations of their constituents, and this custom had been followed for several years under the operation of The bounty act, and was well known to the government officials, who had always paid the bounty to such merchants under such license's. Suthon acted, in making his contracts, on the faith of these precedents established by the government in the interpretation of the bounty law. There was no concealment of the facts as to- the ownership of the plantations described in Sntlion’s applications for licenses. The applications were made prior to July 1, 1894, in due form, to produce sugar at the sugar factory owned by John Scanned and Jamos D. Capron, at the place, with the machinery, and by The methods described in the application, and the required bonds were given. The license1 was not granted, because the law was-repealed on August 28, 38554. before the sugar-making season began. Suthon complied with his contracts with Scanned and Capron, and advanced the money which he engaged to advance, and the crop was made by means thereof. The sugar factories wore conducted in The name of W. J. Suthon. Scanned and Capron made sworn re
The provisions of the act of October 1, 1890, granting a bounty to the producers of sugar, inaugurated a new policy in this country ; and the questions arising in connection with its practical application were novel, and excited doubt in the minds of the most eminent lawyers as to their correct practical solution. To escape the em'barrassment resulting from the provisions of law in reference to making transfers of claims against the government of the United States, the contracts in this case, and in numerous other like cases, provided that the plaintiff should make application for a license as a sugar producer on the plantations and at the factories of the other contracting parties, and that the operation of manufacturing and disposing of the sugar should be in his name, and under the management of persons representing him as his agents in relation '! hereto. The law of October 1, 1890, having been repealed before the licenses were in fact issued to plaintiff, no such licenses were issued to any one as a producer of sugar on the respective plantations' for that year. It is not questioned that the owners of the respective plantations, or the plaintiff, under his contract with them, respectively, is the producer of the sugar produced on the plantations, and entitled to the benefit of the act of March 2, 1895. In the first' case that came before us growing out of the provisions of the sugar bounty law, it was strenuously urged that the bounty was a matter of pure grace, and that before it was received, it was not, and could not be, the subject of contract or lien, as not being in any