Mitsubishi Shoji Kaisha, Ltd. v. Societe Purfina Maritime

This is an appeal from a decree based upon a libel filed November 18, 1940, and amended March 25, 1941, by Societe Purfina Maritime, a Belgian corporation, hereafter called Purfina, against Mitsubishi Shoji Kaisha, Ltd., a Japanese corporation, hereafter called Mitsubishi, and against the diesel oil cargo owned by General Petroleum Corporation of California, hereafter called General Petroleum, and loaded for Mitsubishi’s account on October 2, 1940, on the Belgian tanker Laurent Meeus at San Pedro, California, for unpaid freight claimed to be earned under a charter dated September 21, 1940, executed by Purfina and Mitsubishi for the carriage by the tanker of the oil to Japan. The charter made the cargo as well as Mitsubishi liable for the freight, for which the charter provision is, “2. The freight to be paid in cash in New York less 1% discount on telegraphic advice of signing Bills of Lading and is to be considered earned and not returnable ship and/or cargo lost or not lost.”

The cargo was seized under process in rem. General Petroleum appeared as claimant and contested the freight liability of the cargo. Instead of paying the value of the cargo, $64,000, into court, General…