From Ron Kanwischer (Phoenix, Arizona)
Questions answered by N.Robin Crossby (1989-04-17)
Hagan of Jorgan enters into an arrangement with the good ship Silverfish to transport a cargo lot from Cherafir to Tarkain for 20% of its resale value. In Cherafir, the current market value of this lot is about 1000d, but Hagan managed to acquire it for 900d. He figures that it will probably bring about 2500d in Tarkain.
Question One: The cargo does in fact sell for 2500d in Tarkain. Is there any way that the Silverfish can send Hagan his 2000d without having to return to Cherafir? Hagan would probably not accept a Tarkainan promissory note, as this would be substantially discounted in Cherafir. Sending cash seems risky however.
Answer One: See Acceptability of Notes below. A sum as large as 2000d might be sent back on two or more ships. More likely, Hagan would want, at least some of the money used to buy a new cargo in Tarkain. If he is not accompanying the cargo himself, a colleague in Tarkain could make the necessary arrangements.
Question Two: The cargo sells for 2500d in Tarkain. What is the longest that Hagan should be expected to wait for his money? If the Silverfish takes substantially longer than this, what kind of recompense is appropriate?
Answer Two: Silverfish probably gave Hagan an idea of when it would return, but probably no commitment. If the captain decides to change his plans (eg. continue to Azeryan instead of heading straight back to Cherafir) he should send Hagan his proceeds in whatever way seems reasonable, perhaps on the first ship heading back to Cherafir, perhaps on several vessels. As long as Silverfish is attempts to meet any promised deadline(s) she has no liability. Hagan should start getting worried if he has heard nothing in double the round trip time.
Question Three: The entire cargo lot is lost at sea. How much do the ship's shareholders owe Hagan?
Answer Three: Nothing. Vessels and their owners have no legal liability for acts of god(s). See Lost, Damaged or Jetsioned below.
Question Four: The cargo is damaged at sea and sells for 800d in Tarkain, which is less than it would have sold for in Cherafir. Do the ship's shareholders owe Hagan any money? If so, how much?
Answer Four: No. Same reason.
Question Five: The cargo is damaged at sea and sells for 1000d in Tarkain, which is the price it would have sold for in Cherafir. (However, Hagan's share would only be 800d.) Do the ship's shareholders owe Hagan any money? If so, how much?
Answer Five: No. Same reason.
Question Six: The cargo is damaged at sea and sells for 1250d in Tarkain. (Hagan's share would be 1000d, the same as he would have received in Cherafir.) Do the ship's shareholders owe Hagan any money? If so, how much?
Answer Six: No. Same reason.
Question Seven: The cargo is damaged at sea and sells for 1500d in Tarkain, substantially less than the expected 2500d. Do the ship's shareholders owe Hagan any money? If so, how much?
Answer Seven: No. Same reason.
Question Eight: How would the answers to questions 4 through 7 change if the low sales prices resulted from adverse market conditions in Tarkain instead of damage at sea? If the answers would change, what is to prevent the Silverfish captain from giving Hagan the explanation that will lose the ship the least money?
Answer Eight: It is not likely that the vessel would be selling Hagan's cargo but since the liability does not exist, there would be no cause for such a lie.
Question Nine: How would the answers to questions 3 through 7 change if Hagan knew the lot was only worth 500d in Cherafir, but misrepresented its value to be 1000d?
Answer Nine: If misrepresentation is proved (and that is very unlikely) the mercantyler could go to jail, be forced to pay restitution, or even loose his guild membership. A mercantyler's relationship with his shipper is his most valuable asset. It does not pay to cheat.
Question Ten: If the lot sells for 3000d in Tarkain, what is to stop the Silverfish captain from reporting a sale price of 2500d?
Answer Ten: It is very unlikely that a vessel or her personnel would be selling Hagan's cargo. This would be done by Hagan himself, or by a trusted colleague in Tarkain. If the vessel's supercargo is making the sale, Hagan's Tarkainian colleagues will probably report the sale price.
A lack of clarity in the "Let's Make a Deal" section of Pilots' Almanac seems to be misleading you somewhat. I should probably clarify a few points on cargo ownership.
Most mercantylers who have assembled major cargos prefer to accompany their goods so that they can sell them at the other end personally, or decide to take them somewhere else ultimately, this is the only way to insure maximum profits. An alternative is to sell the whole cargo to the vessel, then the mercantyler does not care what happens to it.
Sometimes several mercantylers form a sort of cooperative. Each contributes a lot with the same destination, then one of them accompanies the cargo acting as an agent for the cooperative. Such "megalots" are placed only on vessels known and trusted by the mercantylers. Unfortunately, the Almanac did not provide for this kind of arrangement.
When Hagan does not accompany his cargo, he will almost always send it in a vessel he knows, and with a captain/supercargo he trusts (at least to make him a profit). Mercantylers and vessels need each other and there is no more valuable asset than a good working relationship.
If no such vessel is available, Hagan will try to send a cargo to a port where he has a trusted colleague (this is one of the main purposes of the mercantylers' guild). It is considered poor practice to send cash back. Hagan will probably have designated a mercantyler in the destination port who will handle his cargo when it arrives. This individual will take possession of the cargo, sell it over the next few days and purchase another cargo on Hagan's behalf. Leftover funds may be sent back to Hagan as cash (perhaps on several different vessels) or as promissory notes drawn on either Cherafir or Tarkain.
Unless Hagan is having a cash-flow problem, there is no particular reason why he should not accept notes drawn on Tarkainian usurers because as a mercantyler and a trader he has more freedom than the general public: he can later send or take them to Tarkain to purchase cargos there at no discount; he can use them at no discount to purchase goods from Tarkainians visiting Cherafir; he can sell them himself (he is a mercantyler) to a person headed for Tarkain who does not want to carry cash; he can trade them for other notes; and if he has a good relationship with local usurers he can trade them for less of a discount than would be normal for the general public.
Larger and wealthier vessels, the ones that make the longer voyages, tend to own their cargoes outright or carry the mercantyler or his agent along for the voyage. It would be rare for a mercantyler not to accompany a vessel that is not returning for a long time (unless he sold his share to the vessel). Ultimately, mercantylers make more money when they go with the ship anyway.
I am working on a file called CARGOLOT.TXT to deal with larger cargo lots for big time traders, but it is not quite ready yet.
The vessel is not responsible for the weather and shippers must expect some bad luck occasionally. As long as the crew, captain, owners, etc. act in good faith they have no liability for goods lost or damaged by act(s) of god(s). This even applies to cargos that are jettisoned when, in the judgement of the captain, the vessel is endangered. To collect compensation, Hagan would have to prove that the captain ordered the cargo dumped without sufficient cause, and this is virtually impossible.
There are, however, exceptions. A vessel down on its luck might be desperate enough to guarantee delivery; this would give Hagan a chance to win litigation. It is also possible to purchase a kind of insurance from other mercantylers, but that is another issue.