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How Law Affects Fuel Suppliers Analysis of Changes Made in Legal Stand- ing of Firms Supplying Fuel to Ships and foreign vessels both in the United States and foreign ports have a different legal status than for- merly. This results from the merchant marine act of 1920. The following sum- mary of the present rights of such firms was prepared by Willard, Sutherland & Co., New York: Prior to the passage of the shipping act and merchant marine act of 1920 the only liens superior to a coal sup- plier's were liens for torts; that is, col- lisions, .etc., liens for salvage and liens for seamen's wages. However, as only in very rare cases did these liens equal the vessel's value, the coal supplier's lien was practically sure to be good if promptly exercised. Pes: supplying fuel to American The merchant marine act created a preferred mortgage, which is given pri- ority over the lien of the coal supplier, and which may be given on any steamer flying the American flag. The ordinary marine mortgage still remains in_ its secondary position as against coal sup- plier's rights. Who Can Order Fuel The following persons are presumed to be authorized by the owner to buy coal for the steamer and care should be exercised to assure that they are acting specifically for the owner: (1) The managing owner. (2) The ship's hus- band. (3) The master. (4) The owner's agent. Under American law it is immaterial that a mortgage exists on a foreign Ship, as the coal supplier's lien is su- perior to a foreign mortgage. We summarize the rights of a sup- plier in the following named cases, this being the United States law applying to all ships bunkering in United States perts: Private-owned American ship operated by owner--No preferred mortgage-- Coal supplied under these conditions cre- ates a lien against the vessel until the account is settled. Private-owned American ship operated by owner on which there is a preferred mortgage--Coal supplied to a vessel under these conditions creates a lien against the vessel, which lien is secondary to the Preferred mortgage. If the sup- Plier, in order to force the payment of the account, libels the ship and the ves- Sel is sold under the libel, the preferred Mortgage must be entirely satisfied be- fore any payment can be applied on the coal lien. This contingency may be avoided, however, if the supplier would demand of the master that he be shown the ship's register or certificate of -en- rollment, which must, by law, contain a notation of the mortgage, if any exists. Should there be no mortage noted, the lien for coal takes precedence as a mari- time lien. , Private-owned American ship under time charter with a preferred mortgage-- Under practically all. forms of time charter the time charterers, and not the cwner, have to furnish the fuel. There- fore, the supplier has no lien on the vessel itself for supplies furnished upon the order of the time charterers, and he must depend upon the credit of charterers only, unless the supplier had no way to learn that the vessel was under time charter. Private-owned American ship under time charter without a preferred mort- gage--The fact of there being no pre- ferred mortgage on the vessel does not alter the position of the supplier from the preceding case. The time charterer under practically every form of time charter is required to furnish the fuel, and it is on his credit that the supplier furnishes the fuel, unless the supplier had no way to learn that the vessel was under time charter. Private-owned American ship on which there is a preferred mortgage operating under a trip charter--A_ vessel under these terms is operating for owner's ac- count and the supplier is in the same position as though the ship were 'without a charter party covering the voyage; the only question would be: Is the ves- sel's equity over and above the preferred mortgage sufficient to satisfy her supply bills in case she should be libeled and sold to satisfy same? Against Federal Ships Private-owned American ship on which there is no preferred mortgage operating tinder a trip charter--A_ vessel under these terms is operating for owner's ac- count, and the supplier is in the same position as though the ship were without a charter party covering the voyage, and the supplier would be furnishing the fuel to the credit of the vessel. American government steamer owned and operated by United States shipping board or an agent thereof--Coal sup- plier has no lien, but can bring suit against the United States in an ad- miralty court for amount of his bill. 287 Credit of the United States is pledged to payment of bill. American-owned steamer operating un- der a bare-boat charter--A vessel operat- ing under this form of charter is oper- ated entirely on the credit of the char- terer and the supplier would have no lien against the vessel for supplies fur- nished. Foreign-flag ship operated by owner-- Coal supplied on the order of the owner, his agent or master of the vessel con-' stitutes a lien against the vessel until same is paid. Immaterial whether there is or is not a mortgage. Foreign-flag ship under charter other ihan time charter--This condition is the same as if the vessel were operating for the owners direct, and the credit condi- ticns are the same as preceding case. Foreign-flag ship operating under time charter--Coal supplied to a_ time-char- tered vessel is for account of the time charterers, and supplier has no lien on the vessel for coal supplied unless he had no way to learn of the existence of the time charter. Suppliers must look to credit of charterers only. : Guide for Foreign Depots In a general way the above summary will be a guide for foreign coal depots in supplying United States ships and for- cign ships en route to the United States. Such foreign depots, in order to prop- erly protect their rights in American courts against steamers presently pro- ceeding to the United States should have the master sign a draft in the usual form, binding the ship and her freight for its faithful payment. The giving of such a draft should enable suppliers to kold the ship in the United States for the amount of their.account, even though the law of the country in which the coal was supplied does not create a maritime lien therefor. The maritime laws of foreign coun- tries differ greatly and it is not possible to state with any reliability what atti- tude foreign governments will take as to the application of United States mari- time laws, including the question of the preferred mortgage. It is not possible, therefore, to predict what courts other than those of the United States will do with respect to enforcing the new laws of the United States respecting liens against vessels. The above, however, will be a guide to those furnishing coal to ships in the United States and to ships presently proceeding there.