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Abstract

Some interesting illustrations in the field of state immunity have been afforded by the litigation arising out of a contract made by the Swedish State Railways Administration (Kunglig Jamvagsstyrelsen) to buy coal from the American firm of Dexter and Carpenter, shortly after the War. Although the contract was on "c.i.f." terms, the National City Bank, in which funds for the payment for the coal had been deposited, paid for part of this coal- upon presentation of insurance certificates instead of policies. As a consequence, when one shipment of the coal was lost at sea, the Railways were unable to recover any insurance. When Dexter and Carpenter were ready and able to perform the rest of the contract the Railways refused to receive and pay for it. The price of coal had meanwhile greatly decreased, resulting in a serious loss to Dexter and Carpenter.

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