Louis Brandeis

“ I cannot agree that a condition in a commercial letter of credit, that drafts are to be drawn against merchandise 'shipment * * * from Java by steamer or steamers to Philadelphia' is satisfied by a shipment 'from Java to Port Said, option New York,' even though the cargo ultimately reaches Philadelphia. ”

“ The clause 'shipment * * * from Java by steamer or steamers to Philadelphia' was not waived, and its meaning on the date of presentation of the draft remained the same as when the credit was issued. The provision in the letter of credit that 'conditions embodied in this credit must be adhered to, otherwise payment will not be effected.' only expresses the rule, with which we all agree, that liability upon a mercantile contract may be established only by strict compliance with its conditions. ”

“ The jurisdiction of the District Court rested upon diversity of citizenship. The plaintiffs sought damages for the refusal to honor a sight draft drawn against a letter of credit, given pursuant to a contract of T. S. Southgate & Co. to buy 1,000 bags of Java white sugar at 22 cents per pound less 2 per cent., duty paid, f. o. b. Philadelphia, landed weights. Payment was to be made in New York City upon presentation of sight draft with invoice and railroad order notify bill of lading attached. ”