Farmers' & Mechanics' Bank v. Champlain Transportation Co.

23 Vt. 186
CourtSupreme Court of Vermont
DecidedMay 15, 1851
StatusPublished
Cited by51 cases

This text of 23 Vt. 186 (Farmers' & Mechanics' Bank v. Champlain Transportation Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers' & Mechanics' Bank v. Champlain Transportation Co., 23 Vt. 186 (Vt. 1851).

Opinion

The opinion of the court was delivered by

Redfield, J.

The facts, necessary to a full understanding of the points, now determined by the court, will be found sufficiently detailed in the reports of the same case, 16 Vt. 52, and 18 lb. 131.

The first question is, What was necessary to constitute the defendants common carriers of bank bills 7

The defendants’ charter extends to the’ carrying of all commodities usually carried upon Lake Champlain at the date of the charter, and the proof showed, that bank bills were usually carried by the water craft upon that lake, at the time the defendants’ company took their charter and went into operation. The words of the charter are, “ All other articles and things usually transported by water on said Lake Champlain.” This being so, there could be no doubt, the defendants’ powers, as a corporation, extended to carrying bank bills. And something in the bill of exceptions looks as if the jury were told, that this did, ipso facto, and of necessity, constitute the defendants common carriers of bank bills. But this general proposition we do not think exactly maintainable. For the powers of natural persons, who should erect steamboats, and become carriers upon Lake Champlain, would be equally extensive with those of the defendants; but if they should confine their business to carrying other dissimilar commodities, we do not think they could be compelled to assume the risk of carrying bank bills, or specie. And so the court, in this case, seem to have viewed the subject in another portion of their charge, when they allude to the practice of this company, in carrying bank bills, as a practical construction of their own charter, and of their own obligations to the public under it. [203]*203But it seems to us, that this case is distinguishable from those, where it has been held incumbent upon the plaintiffs to show, by positive proof, that the company consented to the captain of their boat carrying money on their account, in order to hold the company responsible for the loss of the money. Sewall v. Allen, 6 Wend. 351, reversing the judgment in Allen v. Sewall, 2 Wend. 327, is one of that class of cases, so far as the determination of the court of errors is concerned. And that determination seems to meet with approbation in Angelí on Carriers, § 101, and note 4. And Story, J., in Citizens’ Bank v. Nantucket S. B. Co., 2 Story’s R. 16, and Chancellor Kent, 2 Kent 609, seem also to approve the decision oN the court of errors. But these eases, and the writers named, adopt this view of the subject, upon the ground that the charter of the ! company limits their business to the carrying of “ goods, wares, and merchandize,” and that bank bills are neither, and so the companyj prima facie not liable; and not liable in any event, .unless they have given their consent to their proper business being enlarged, so as to include bank bills ; and also that this was a suit against the stockholders in their individual capacity, under the charter. Upon this narrow view of that case the decision of the court of errors may stand; but, as applicable to a company, whose charter, on the face of it, does include the carrying of bank bills, and in a suit directly against the corporation, it seems to us the reasoning is altogether unsatisfactory and unsound. And unless that case is to be distinguished from the present, upon the ground of the restricted nature of the charter of that company, we should certainly incline to the opinion of the supreme court of New York, in Allen v. Sewall, rather than that of the court of errors. Mr. Justice Story, (in 2 Story, ut supra,) seems to admit, that, upon general principles, the captain’s contract will bind the company to the extent of the charter powers.

It seems to us, that when a natural person, or a corporation, whose powers are altogether unrestricted, erect a steamboat, appoint a captain, and other agents, to take the entire control of their boat, and thus enter upon the carrying business, from port to port, they do constitute the captain their general agent, to carry all such commodities as he may choose to contract to carry within the scope of the powers of the owners of the boat. If this were not so, it would [204]*204, form a wonderful exception to the general law of agency, and one in ! which the public would not very readily acquiesce. There is hardly any business in the country, where it is so important to maintain the authority of agents, as in this matter of carrying, by these invisible corporations, who have no local habitation, and no existence, or power of action, except through these same agents, by whom almost the entire carrying business of the country is now conducted. If, .then, the captains of these boats are to be regarded as the general agents of the owners, — and we hardly conceive how it can be re-i garded otherwise, — whatever commodities, within the limits of the powers of the owners, the captains, as their general agents, assume' to carry for hire, the liability of the owners, as carriers, is thereby fixed, and they will be held responsible for all losses, unless, from the course of business of these boats, the plaintiffs did know, or upon reasonable inquiry, might have learned, that the captains were intrusted with no such authority. Prima fade the owners are liable ,for all contracts for carrying, made by the captains, or other general agents, for that purpose, within the powers of the owners themselves, and the onus rests «pon them to show, that the plaintiffs had made a private contract with the captain, which it was understood should be kept from the knowledge of th£ defendants, or else had given credit exclusively to the captain. Butler v. Basing, 2 C. & P. 614.

But it does not appear to us, that the mere fact, that the captain-was, by the company, permitted to take the perquisites of carrying these parcels, will be sufficient to -exonerate the company from liability. Their suffering him to continue to carry bank bills ought, we think, to be regarded as fixing their responsibility, and allowing the captain to take the perquisites, as an arrangement among themselves, j But we are aware, that the question, with whom was the cSntfact, and to whom the credit was given, will generally be one, to some extent, of fact. Yet it seems to us, that the defendants have no ground of complaint with the general mode, in which this part of the case was disposed of in the court below. The law would have justified the judge, as we have before stated, in putting the case, upon this point, upon grounds far more unfavorable to them. Indeed, it seems to us, that, upon the facts stated, if we are not misinformed in regard to the general nature of the defendants’ charter, there could be very little ground to raise any question, either of law [205]*205or fact, as to the defendants’ liability, as common carriers of the parcel, so far as they undertook to carry it.

As to the notice, which was attempted to be proved ,£we do not see, but the proof of the loss of the remainder of the hand bill was sufficient^ we are more inclined to adopt the view which the American cases have taken of this subject of notices, by common carriers, intended to qualify their responsibility, than that of the English courts, which they have in some instances subsequently regretted.

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Bluebook (online)
23 Vt. 186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-mechanics-bank-v-champlain-transportation-co-vt-1851.