The Kate

Decision Date30 November 1896
Docket NumberNo. 106,106
PartiesTHE KATE
CourtU.S. Supreme Court

George Bethume Adams, for appellant.

J. Parker Kirlin and W. P. Williams, for appellee.

Mr. Justice HARLAN delivered the opinion of the court.

This is a proceeding in admiralty for a decree condemning the steamship Kate, an English vessel, her boilers, engines, tackle, apparel, and furniture, to be sold in satisfaction of the claim of the Berwind-White Coal Mining Company, the libelant herein, for the alleged value of 766 tons of coal furnished to and delivered on board of that vessel at the city of New York on the 23d day of December, 1892.

The owner, a British subject, intervened, and filed an answer denying the liability of the vessel. The district court having dismissed the libel (56 Fed. 614), the cause was transferred by appeal to the United States circuit court of appeals, in which court certain questions of law arose, which were certified to this court under the sixth section of the act of March 3, 1891, c. 517 (26 Stat. 826). Upon examining the questions so certified, as well as the statement of facts that accompanied them, this court, by appropriate order, required the whole record to be sent up, that the cause might be here determined, as fully as if it has been brought here for review by appeal.

The case made by the pleadings and proofs is substantially as stated by the circuit court of appeals, and is as follows:

The United States & Brazil Mail Steamship Company, a New York corporation, having a place of business at the city of New York, owned and operated vessels plying between that city and ports in Brazil. Coal for their use was obtained from the libelant, a Pennsylvania company, which was engaged in mining and selling coal, and had a place of business in the city of New York. The coal was furnished upon the order of the steamship company, and in each instance was charged upon the libelant's account books to that company, as well as to the respective vessels.

In June, 1891, the steamship company being indebted to the libelant, for coal delivered, in the sum of $25,000, the latter, for its security, filed specifications of lien against the vessels, under a statute of New York providing for the collection of demands against ships and vessels. Laws N. Y. 1862, p. 956, c. 482. Subsequently, upon an adjustment of accounts between the parties, it was agreed that the libelant should continue to furnish coal to the vessels of the steamship company, and in its discretion, and for its security, to file in the proper office specifications of lien against each vessel for the coal supplied to it. All the vessels for which the libelant had, up to that time, furnished coal upon the order of the steamship company, were owned by that company. But shortly thereafter the steamship company began to employ in its business steamers obtained under time charter parties. Among the vessels so employed was the steamship Kate.

The charter party under which the steamship company obtained the possession and control of the Kate was executed December 15, 1892. It contained, among other conditions, the following:

'(1) That the owners shall provide and pay for all provisions, wages, and consular shipping and discharging fees of the captain, officers, engineers, firemen, and crew, and shall pay for the insurance of the vessel, also for all engine room and deck stores, and maintain her in a thoroughly efficient state, in hull and machinery, for and during the service.

'That the charterers shall provide and pay for all the coals, port charges, pilotages, agencies, commissions, and all other charges whatsoever, except those above stated. That the char- terers shall accept and pay for all coal in the steamer's bunkers on delivery, and the owners shall, on the expiration of this charter party, pay for all coal left in the bunkers, each, at the current market prices at the respective ports when she is delivered to them.'

'That the charterers shall pay for the use of said vessel at the rate of six shillings and sixpence per gross register ton per calendar month, commencing from the time the vessel (after entry at the customhouse) is placed with clean holds at charterers' disposal, and at and after the same rates for any part of a month. * * *'

'Owners to provide rope, falls, block, and slings necessary for handling ordinary cargoes, up to three-ton weight.'

'That the captain shall prosecute his voyage with the utmost dispatch, and take every advantage of wind, by using the sails with a view to economize fuel, and shall render all possible assistance with ship's crews and boats.

'That the captain (although appointed by the owners) shall be under the orders and direction of the charterers, as regards employment, agency, or other arrangements; and the charterers hereby agree to indemnify the owners from all consequences or liabilities that may arise from the captain signing bills of lading, or otherwise complying with their orders and directions. that if the charterers shall have reason to be dissatisfied with the conduct of the captain, officers, or engineers, they shall make such complaint in writing to the agent in New York, specially appointed by owners, who shall have full power to act on their behalf, and, if necessary, dismiss any of the officers, should they find the complaints made by charterers are justified and proven.

'That the charterers shall have permission to appoint a supercargo and a purser, who shall accompany the steamer, and be furnished, free of charge, with first-class fare and accommodation, and see that the voyages are prosecuted with the utmost dispatch.

'That the master shall be furnished, from time to time, with all requisite instructions and sailing directions, and shall keep a full and correct log of the voyage or voyages, in which the consumption of coal shall be correctly entered, which are always to be open to inspection of the charterers or their agents.'

'That the owners shall have a lien upon all cargoes and all subfreights for any amount due under this charter, and the charterers shall have a lien on the ship for all moneys paid in advance and not earned.'

The owners of each chartered vessel, as the libelant knew, had an agent for the business of the vessel at New York City. The libelant knew, or could easily have known, what vessels belonged to the steamship company, and what vessels were operated by the latter under time charters. It is true that its agents did not examine the charter parties, nor make any inquiry as to their provisions; but, from what they had always heard about such instruments, they believed and assumed, or took it for granted, that they contained conditions requiring the charterers, at their own expense, to provide and pay for all coal needed by the vessel. It was under these circumstances that the libelant furnished each vessel operated by the steamship company with coal as ordered by that company, charging the company and the vessel therefore, without making any distinction in the mode of keeping its accounts between the vessels owned by the steamship company and those operated by it under time charter parties. Specifications of lien were filed in the proper office against each vessel to which coal was delivered.

None of the coal furnished to the chartered vessels was ordered by the master of the vessel, nor were any of the bills therefor submitted to him for approval. They were submitted only to the steamship company. Nor did the agents of the chartered vessels know that coal was supplied by the libelant on the credit of the vessel, or that any specifications of lien were filed under the local statute.

The coal received by the chartered vessels was delivered at different dates between August 17, 1892, and December 31, 1892; that received by the Kate, and referred to in the libel, being delivered on the 23d of December, 1892.

The steamship company was not informed until after Decem- ber 31, 1892, of specifications of lien having been filed under the statute against the chartered vessels.

In January, 1893, the libelant having been advised by the steamship company not to remain unprotected in the future, the latter was then informed by the libelant that it had filed specifications of lien against all the vessels, including those chartered.

The coal furnished to the chartered vessels was contracted for and delivered at a time when nothing was due to the owners from the charterer, the hire of the vessels having been paid in advance.

Coal was not required in the interest of the owners of the chartered vessels at the time it was furnished; for the agent of each vessel had sufficient funds in hand, or could have obtained sufficient funds upon the credit of the vessel, to supply coal for any given voyage.

In may be assumed, for the purposes of the present case, although the evidence upon this point is not very satisfactory, that the libelant in fact relied upon the credit both of the charterer and the vessel, and believed that it acquired a lien in each instance by the filing of specifications under the statute of New York of 1862, which statute was subsequently amended, but not in any particular affecting the determination of this case. Its provisions, so far as it is material to refer to them, are as follows:

'Section 1. Whenever a debt, amounting to fifty dollars or upwards, as to a sea-going or ocean-bound vessel, or amounting to fifteen dollars or upwards, as to any other vessel, shall be contracted by the master, owner, charterer, builder or consignee of any ship or vessel, or the agent of either of them within this state, for either of the following purposes:

'(1) On account of work done or materials or other articles furnished in this state for or towards the building, repairing, fitting, furnishing or equipping such ship or vessel.

'(2) For such provisions and stores furnished within this state as may be fit and proper for the use of such vessel at the time when...

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