In re St. Joseph-Chicago S. S. Co.

262 F. 535, 1919 U.S. Dist. LEXIS 709
CourtDistrict Court, N.D. Illinois
DecidedDecember 23, 1919
DocketNo. 32231
StatusPublished
Cited by6 cases

This text of 262 F. 535 (In re St. Joseph-Chicago S. S. Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re St. Joseph-Chicago S. S. Co., 262 F. 535, 1919 U.S. Dist. LEXIS 709 (N.D. Ill. 1919).

Opinion

CARPENTER, District Judge.

The steamer Eastland, heavily laden with excusionists, sank at its dock in the Chicago river on July 24, 1915. The loss of life was appalling. Through the magnificent and heroic efforts of the life salvors, intervening in this petition, the [537]*537lives of many men, women, and children were saved. The Eastland was fast to the dock at the time of the disaster, and for lack of proper ballasting turned over on her side, settled, and sank in 20 feet of water on the bottom of the Chicago river. As she lay on her side, a considerable part of the steamer was above the surface of the water, and she constituted an obstruction to the free navigation of the Chicago river; indeed, a menace to safe navigation.

It became the duty of the owners, under the law, promptly to raise and remove her. To this end, on July 27, 1915, the owner of the vessel entered into a contract with the Great Lakes Towing Company “to raise and deliver said steamer, righted and pumped out, to a dock in the vicinity where she lay sunk, for the sum of $34,500, no cure no pay.” Under this contract the towing company began the work of raising the steamer on August 4, 1915, completed the work, and turned the steamer over to her owners on August 16, 1915.

On August 17, 1915, limitation proceedings were begun in this court by the owners of the steamer. The steamer was conveyed to a trustee appointed by the court, and on August 27, 1915, a monition issued, returnable the following December, requiring all persons having claims against the steamer Eastland, or her owners, arising out of the disaster of July 24, 1915, to file such claims on the return day of the monition. On September 1, 1915, the Great Lakes Towing Company filed its petition in this court setting up its contract for raising the steamer, the performance of the contract, and praying that it be paid $34,500, the price agreed upon. On December 15, 1915, the trustee of the court sold the vessel at public auction for $46,000, and that sum was paid into the registry of the court.

Many claims were filed in this proceeding by administrators of estates of people who lost their lives when the vessel capsized, and by other persons who suffered personal injuries or lost property at the same time. On behalf of these claimants objection was made to the pajmient of the claim of the Great Lakes Towing Company, and the District Court, on November 3, 1916, entered an order denying the payment of the claim of the Great Lakes Towing Company as a preferred lien claimant. On July 23, 1918, the Circuit Court of Appeals handed down an opinion, reversing the order of the District Court and remanding the cause, with directions to allow the towing company’s claim, stating in the opinion:

“Since it affirmatively appears that appellant’s claim is the only one of the preferred class, there is no reason for delaying payment.”

On November 25, 1918, and March 24, 1919, applications for writs of certiorari in the Supreme Court of the United States to review the action of the Circuit Court of Appeals were denied. On March 29, 1919, the present claimants, the salvors of human life, so called, made an application to the District Court for leave to file an intervening petition in this proceeding, claiming a fair share of the remuneration allowed to the towing company for its service in raising and righting the steamer. On April 24, 1919, leave was given to the life salvors to file their claims.

[538]*538On May 5, 1919, the District Court denied a motion of the Great Lakes Towing Company for a decree and immediate payment, on the ground that the mandate of the Court of Appeals merely directed it to allow the claim for raising the boat, together with interest and costs, but did not direct its allowance as a preferred claim against the life salvors. Exceptions were filed by the towing company to the amended intervening petitions of the life salvors, and the question presented here is whether the life salvors, performing their services on July 24, 25, and 26, 1915, may participate in the contract salvage allowance made to the Great Lakes Towing Company for raising the Eastland between August 4 and August 16, 1915, under the contract of July 27, 1915.

[ 1 ] The amended claims admit that all of the services rendered by the life salvors were performed on or before July 27, 1915. They make their claims under section 3 of the act of August 1, 1912 (37 Stat. 242), known as the Salvage Act (U. S. Comp. Stat. §§ 7990-7994 [9 Fed. Stat. Ann. (2d Ed.) 121]):

“Chapter 268. An act to harmonize the national law of salvage with the provisions of the international convention for the unification of certain rules with respect to assistance and salvage at sea, and for other, purposes.
“Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, that the right of remuneration for assistance or salvage services shall not be affected by common ownership of the vessels rendering and receiving such assistance or salvage services.
“Sec. 2. That the master or person in charge of a vessel shall, so far as he can do so without serious danger to his own vessel, crew, or passengers, render assistance to every person who is found at sea in danger of being lost; and if he fails to do so; he shall, upon conviction, be liable to a penalty of not exceeding one thousand dollars or imprisonment for a term not exceeding two years, or both.
“Sec. 3. That salvors of human life, who have taken part in the services rendered on the occasion of the accident giving rise to salvage, are entitled to a fair share of the remuneration awarded to the salvors of the vessel, her cargo, and accessories.
“Sec/ 4. That a suit for the recovery of remuneration for rendering assistance or salvage services shall not be maintainable if brought later than two years from the date when such assistance or salvage was rendered, unless the court in which the suit is brought shall be satisfied that during such period there had not been any reasonable opportunity of arresting the assisted or salved vessel within the jurisdiction of the court or within the territorial waters of the country in which the libelant resides or has his principal place of business.
“Sec. 5. That nothing in this act shall be construed as applying to ships of war or to government ships appropriated exclusively to a public service.
“Sec. 6. That this act shall take effect and be in force on and after July first, nineteen hundred and twelve.”

The life salvors claim that they “are entitled to a fair share of the remuneration awarded to the salvors of the vessel, her cargo, and accessories,” and that therefore the claim of the Great Lakes Towing Company ought not to be paid in full to their prejudice. The exceptions of the towing company are as follows:

“I. Said amended claim of Sherwood S. Mattocks for himself and others, and the other like claims, do not state a cause of action.
“II. It appears on the face of said claims as amended that the alleged services were rendered entirely disassociated from, independent of, and were prior [539]*539in time to the services of the Great Lakes Towing Company, and were in no manner connected with or related to the services rendered by said Great Lakes Towing Company.

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Cite This Page — Counsel Stack

Bluebook (online)
262 F. 535, 1919 U.S. Dist. LEXIS 709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-st-joseph-chicago-s-s-co-ilnd-1919.