Maritime History of the Great Lakes

Marine Record (Cleveland, OH), October 18, 1888, p. 2

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z The schooner J. B, Newlands, delivering the balance of the cargo, amounting to 5,107 pieces. When the vessel arrived at the port of Chicago, the expenses put upon it at that time awounted to somewhere about $7,575, and what her value then was, it is impossi- ble to say. Afterwards, Miller Brothers took her onto their drydock, and under the instructions of the master and of John Prindiville, the local agent of the Continen, tal Insurance company, repairs were put upon ber of $2,221.92, For these repairs ; the schooner was libeled and sold by the marehall at public auction, under the de cree of this court, for the sum of $1.225, to | J. W. Dunham, of the Dunham T. & W. | Oo,; the purchase money paid into the reg- istry of this court, and paid out to all those | MARITIME LAW. IN REPETITION OF THE CONTINENTAL IN- SURANCE COMPANY OF THE CITY OF NEW YORK, TO LIMIT ITS LIABILITY UNDER THE 181TH SECTION OF ACT OF ConGRESS, 1884, CH. 121 EX RE, CREDITORS THE SCHOONER ELGIN—DECREED THAT THE UNDERWRIT- ERS MAY LIMIT. District Court of tne United States, for the Northern District of Illinois. Statement and Argument on Benalf of Pe- titioner., Rosertr Rak, Jas. C. tora for petitioner. In the spring of 1885, the hull of the Ca- nadian schooner Eigin, valued at $6,009, was underwritten for her owners Ackeson and Lawson, under lake form of bull policy. by the Anglo-American Insurance company | Mc*HANE, Proe- of the District of Columbia, for the season | opposing this petition, upon their several) of navigation of 1885, in the sim of $2,500, | intervening libels against these proceeds. | and in the Continental Insurance company i Prior to this, on the 5th day of Decem- ber, 1885, Dunham T, & W. company sued out a foreign attachment in the superior court ot Cook county, against the late own- ere, Ackerson and JT.awson, upon an affida- vit setting forth that they through the mas- ter of the vessel engaged it to render these services, and it obtained judgment without personal services for the full amount of its bill, and garnisheed the Anglo-American and the Continental Insurance companies, as debtors of the judgment defendants. The answer of these consignees to the garnishee is very non-committal. Their duty was to protect, if they honestly could, their customer, and they simply contented themselves with answering after protesting against the exorbitancy of the bills, that they owed in general average to whoever was entitled to receive it, their respective proportions of the whole of the expenses incurred, for the benefit of the schooner Elgin. Dunham’s attachment looked as if it would enable his corporation to gobble up the whole amount of the general average charges, due by these underwriters, leaving the other creditors, these opponents, equally meritorious as: Dunham, ‘wholly unpro- of the city of New York in the sum of $1,- 500, insurance limited, however, in the Jat ter company’s policy “fagninst total loss and general average only,’’ leaving a one third interest uninsured of $2,000. The policies were in usual torm of lake marine policies on hulls. There was aiso a risk on cargo in open policy for $1,500 writ- ten by the British American Aseurance cow- pany. BiopgeErt, J. While theee policies were in force the schooner Higin, in command ,of Lawson, part owner, on the second day of August, 1885, while bound on a voyage to Chicago» Jouded with 6,487 pieces of ties, ata freight of six and a haif cents'a piece, was, by. the violence of the winds and waves, driven on the west shore of Lake Michigan, about four miles north of Racine poist. The master of the vessel, on the third day of August, was able to get ashore and visit Chicago, and there reported to Richard Ris- pin, aninsurance agent, whose partner at the time was the agent of the Continental Insurance company. There is a well established custom on the lakes, in cases of marine disaster in which underwriters are interested, for the master - or his servants to give notice to the under- writer having the majority of . interest, whose business it was, upon receiving such notice, to take charge of the interest of all the underwriters. In pursuance of this custom, Rispin at once wired J. P. Orr, general agent of the Anglo-American In- surance company at Buffalo, under date of _ August 4,“‘that the schooner Elgin was “ashore near Racine. Captain at Chicago, pein: the Anglo-American had $2,500, and “wants to know if Rispin shall send a man “to. take care of the company’s interest.’’ underwriters, under the 11th section of the Guarnishment Act, Ch. 62, Rev. Stat. 1225, [Star and C. edition,] the salvors were all cited to appear and receive their proportion of the general average charges admitted to be due with this qualification, however, that the bills of the salvors were vastly exagger- ated and unreasonable. The Anglo-American Insurance company, ‘ having failed and become! insolvent before co like: telegram from like party to like answer filed by these salvors, they at once f j “nt, informing Orr that the tug | determined that the only way to get the full i | amount of their bill was by attempting to | charge the whole of it to the Continental | Insurance company, who was financially responsible. They, therefore, determined ‘to answer the citation by disclaim- : ‘ing any interest in the general ~ av- “help him and protect the company’s inter-|erage charges, or of any _ interest est. I don’: want the company tobecome|in any particular fund, and assert- ing that the Continental Insurance company employed them, and as such was liable to the full amount of their respective bills, and that they bad also a lien to secure them on the schooner Elgin. They at once filed their libels against the ,Continental Insurance company, claiming that it was liable to the full extent of their respective bills’ After this they took no steps to collect the general average charges. These charges stood as follows: “responsible for the bills, preferring that “tthe captain should do s0, and we con- “tribute.” Rispin, acting under these instructions, employed a wrecking master, John Prindi- ville, jr., who however, was not in the em- ploy of any particular company, or ot the Continental Insurance company. He, with the master, at once commenced to look af- ter the wreck. The tug T. T. Morford, whereof J. W. Dunham’s T. & W. company was the owner, was on the fifth day of | Anglo-American... sssceeeees---+ $1,835.38 August employed By the master to go to the 2g inental..... ane assistance of the schooner. She started on Mrciohic, iste eh that day and remained by the schooner | Cargo..........---+ +--+ 1,920.50 some nine days, ber bill amounting to $2,. IRS $6,637.65 ‘637.40. Prior to this, on the 3dof August, Frederick Knapp and others had been em- ployed by the master, and on the next day by the wrecking master and the master, The tug Sill, whereof Knapp & Gillem were the owners, was employed to lighter and handle the cargo, and the services of this tug, and of men employed in her assistance to handle the’cargo, amounted to $1,188.14, Afterwards, commencing after August 7th, other bills were contracted, the whole amounting to $9,806.36. On the 7th of August, while the vessel was still on the beach and these the salvors were at work, the master, who was also part owner, abandoned, in writing, the vessel to her un- writers, The general average charges, which the vessel was assessed to pay, amounted to $4,404.91, and stated as follows: These opposing creditors insisted that they had no interest in any particular fund, and they then did and now do, assert that they look to the Contental Insurance company for whatever deficit there is after exhaust- ing the proceeds of the sale of the schooner to satisfy in full their respective claims. This disclaimer filed in the case of Dunham TT, & W. company’s attachment suit, enti- tled it to a judgment for these goneral ave erage charges, and to that extent it had been satisfied. The position of the’ salvors was a com- plete surprise to the counsel of the Conti- nental. When the salvors asserted, stimu- lated by the failure of the Anglo-American Insurance company, that they looked to the Continental Insurance company for the whole ot their bills, and that they would wenepes 20 G, Av, charges...... $4,404.91 | have nothing to do with the general average athe Sates 8 aes sn i $1,835.38 charges, the position was £0 novel, so un- Continental, TESOO 2G ie coc L 101.23 just, so contrary to the settled practice of Owners uninsured adjusting these kinds of claims, and so interest, BeOOO tears eret 1,468.30 | fra ught with danger to the Continental In- © The cargo was assessed... 1... .n06 gee surance company, that its comnsal boeame Aho dregs si" ntperindee RSS "312.24 alarmed lest his client on an insurance of rsa $1,500 would by an ingenious device, if 65 - f litt ies pphicater tveripel. 2 cause. 4 1b, successful, be mulcted in asum 0} le less than $10,000. The court can well imagine the solicitude with ‘which the counsel for the petitioner would feel, that all should be saved that could be saved, and all should be done that could be done to avert so grave a catastro- phy. It became of the first importance that thé salvors should be induced to accept whatever could be recovered of the $1,920 Total loss... .2+0neacteceneeese-- $9,800.36 The yessel was brought into the port of Chicago, on the evening of the 18th of August, 1855, in a disabled condition, in charge of two tugs, with a steam puiap and with a small portion of her cargo aboard of her, amounting to but about 1,380 pieces out of the total of 6,487, FLANGED tected. To secure equality’"among them, the | { | have collected it of the consignees. This Ghe Marine Record. CORRUGATED RUGATED FLUES FOR BOILER FURNACES ALL SIZES AND WIIH OR WIS Take 10h or 23 | Ferries from Nuw Yorx| t’ GREENPOINT | Street “THE CONTINENTAL IRON WORKS, - BROOKLYN, NEW YORK. Manufactured SOLELY IN THE UNTVED STATES — UNDER OUR OWN PATENTS — AND THOSE OF Samson Fox, Leeds, Envlan. Tuk NEW YORK BELTING AND PACKING COMPANY. OOS sx OO LOKI ee Sees ree arene 323° 25202020202020202020202026; Z CSE PRP PP 7 OS oe Ne aD ae PPX BO IIS Sse! 7) R PERFORATED aan JOHN H. CHEEVER Treas. J. D, CHEEVER, Dept. Trene.t No, 308 Chestnut St., Phila, Cor Wazee nnd 17th Sts., 203 Nicollet Ave, Minneapolis, Denver, Colorado. Vulcanized Rubber Packing of Every Description. “| \UBBER MATS AND STAIR-TREADS a For Halls, Floors, Decks and Companionways,| Rubber Belting, Packing and Hose. ¥& é| IRE TEST HOSE FOR STEAMBOATS & TUGS. STWAM HOSE. WAREHOUSE: 15 PARK ROW, NEW YORK. ist Lake St., Chicago. 52 & 54 Summer St. Bostone Post & Co , Cincinnati, O. Humburg (Freihafengebist), Germany, European Branch—Pickhuben 5, H STEEL OR IRO OF SUPERIOR N MARINE BOILERS coxsreucrio Am Sp Ec a” A HE Be MADE IN = MALL STYLES and a OF EITHER STEEL OR IRON, f Ma \ Ul | J Bs me by UL 2 Uy) a Nice tl _ WORKS SOUTH BROOKLYN, HYDRAULIC RIVETED: Nb i LIDGERWOOD 'G. oi assessed on the cargo, and due from its con- ‘signees. The Continental had no right to gather up thissum. The salvors alone were entitled to it, nor would it be safe for the Continental | ‘Tosurance ‘company to have paid this amount over to the salvors, if they could have been induced to receive it, and have attempted by virtue of the payment to was painfully apparent when the counsel for the salvors and consignees declined to go with the counsel for the underwriters and with one of fhe libelants, Mr. Knapp, and collect this $1,920, or so much of it as could be collected. It was plain to be seen that the salvors would have naught to do with it, and it was easy to realize that their programme was to compel the Continental Insurance company to pay the whole amount of the bills and when it sought to collect of the consignees of the cargo, their contributary share, it would be met with the able assistance of their counse), now counsel for the creditors; that the consign- ees were not liable and that charges of $1,920 on lumber of the value of $1,200, was palpably extortionate and wholly inad- missable. The Julia Blake, 107 U. 8., 481. The British American Assurance com- pany were the underwriters on this cargo, and as such would ultimately have to pay whatever was justly due in general average charges on cargo. By the terms of its pol- icy it would not be liable unless suit was brought against it within a year from the date of the loss, The year wouldjexpire on the 8d of August, 1886, and unless some- thiug was done at once by the salvors to collect this sum, it would likely be lost to all. The Continental , Insurance company had no claim on it, and therefore could maintain no suit; the fund belonged to the salvors, and they alone ‘could sue. The British American Assurance company, three days before the year would expire, in whicb suit covld be brought against it, on the 3lat of July, 1886, paid into the hands of their own counsel, and not the counsel ot the salvors or the counsel of the Conti- nental Insurance company, the sum of $1,400. Phis money was paid him with which to settle these salvage charges, he first deduc- ting his own fee for so doing out of the de- posited fund; and as such bailee, he must be held to hold it, whenever those entitled to receive it may make up their minds that they no longer look to the Continental In- surance Co. for their entire claim, So far no: demand or claim have even been made by the salvors on apy one for this fund, It is said that the counsel of the British Amer- ican Assurance Go, was also counsel at the time of the receipt of the money of the Con- SE ae Si Ea a a at nt a oa a lt ame lA Bede and foomctare he } to hold the Continental I wecuial Taausanee ay. was not in a position to act as. counsel for | der such circumstances, y virtue ‘its the British American. Certainly this is| tract ot aia not so as to strangers, such as these credi- | tors are, and if it were soasto the Conti- ? Sv Hear fund and had certainly no right to jane any } the whole of e expenses, such unless it had first paid the salvors the for the beni a evéeral the amount of the consignees, the counsel | such ace The W, on the other side in this case would have| is that: sharply disputed its right to collect it, though it had paid it to the salvors. The Continental Insurance Co., has never received one dollar ‘of this fund, and there- fore bas no concern in its disposition. The counsel for the British American who obtained this fund from his client, ought to be treated liberally as a salvor for the bene- fit of whom it may concern. For certainly without his efforts, the whole fund would have been lost. In a relentless pursuit of the Ganinental Insurance Oo., to compel it to bear all the burdens of this most extravagant adventure every other asset was sacrificed. The ves- sel by a forced sale, the general average charges, by a written abandonment of them filed in court where these salvors were sum- moned to receive them, The Continental Insurance Co., thus pur- sued, turns upon the prowling suitors, and *nterposes the eighteenth section of the Act “Cooper y. pace E of Congress of June 26th, 1884, asa shield | “point was decided ° against this unjust, anomalous and inequit- | “And Mr. Chief J) aati able proceeding, The act provides: “That “true principle was es tablis 1 6 “become the owner of “are responsible for the e “which the abandoumen “this case, as the ow “to be partners; i ¥ Behe “bears to the whole pag “And the case w. t “of persons to pureh: @ alot “they were to haye Sept “ma _e the Lies “the individual liability of a ship-owner, | “v. De Het “«ghall be limited to the proportion of any or “share of the’ vessel bear to the whole. } ‘ship, thejowners s1 ou “And in the aggregate liabilities ofall the | ‘to their respectiv e shi C “owners of a vessel on account of the same, | **thejship. United ‘insa «shall not exceed the value of such vessels | ‘Jobns., 105, See ‘and the freight pending, Provided, that ;643. ial aede tee “this provision sh»ll not affect the liability | This .aw is approy “of any owner incurred Hee to the passage in his work ‘on Shi ‘joining all the owners in one action, Nor | 3 of this excellent : “shall the same apply to the wages due to | the petition as the “the persons employed by said ship-owner.”” |, ( ; The liability sought to be limited by this closed, but petition was one incured by the master of| it was traversed, the schooner Elgin, and the wrecking mas-| sustain the ami ter who was primarily employed by the An. glo- Amdrican Tusurance Co,, and whatever pleaded, asa cus liability is thrown upon’ the Continental In-| onder sea surance Co., is by virtue of the implied po-| good. wer of these agents to bind its. credit to the |. er this r payment of these debts. The creditor coon f PERG

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