Karo v. Two Hundred Tons of Sulphur

29 F. 652
CourtDistrict Court, E.D. Pennsylvania
DecidedJuly 1, 1886
StatusPublished

This text of 29 F. 652 (Karo v. Two Hundred Tons of Sulphur) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Karo v. Two Hundred Tons of Sulphur, 29 F. 652 (E.D. Pa. 1886).

Opinion

Butler, J.

There is very little, if any, dispute between the parties respecting the facts. The libelant’s statement is substantially correct, and is adopted by the court. It is as follows:

This was a libel filed against part of 600 tons of sulphur shipped by the charterers at Palermo, for Philadelphia, in which the libelants seek to enforce the lien for the balance due under a charter-party between Tagliavia & Co., of Palermo, and libelants, as follows:

Charter-party freight, - .... £1,224

Fifth port of loading, ..... 50

Demurrage as per indorsement of Tagliavia & Co. on the charter-party at fifth port, ------ 30

■ For proceeding from Boston to Philadelphia to deliver the sulphur attached, ------ 150

£1,454

Less freight collected at Boston, .... 960

Balance due the ship, ... _ £494

The terms of the charter-party, material to this question, are as follows: The vessel was to load at Adriatic ports and Sicily, in rotation, four places only, as ordered, and to proceed to Baltimore, Philadelphia, Hew York, or Boston, one port only, as ordered, on signing bills of lading. Freight was a lump'sum, £1,224. The freight to be paid on unloading and right delivery of the cargo, in cash, at current rate of exchange, for bankers’ 60 days’ sight bills on London, on the date of reporting at customs, less cash advanced. The charterers to have the option of ordering the vessel to a second northern port of discharge on payment of £150 additional. The captain to sign bills of lad-[653]*653mg as presented, without prejudice to this charter; owners having an absolute lion on the cargo for all freight, dead freight, or demurrage due to the steamer under this charter-party. Charterers to have the option of using one or two additional ports or places for loading in the Adriatic or Sicily. Steamer in no case to retrace her course,—paying £50 extra. The steamer to be consigned to charterers’ agents at ports of loading and discharge. Demurrage over and above laydays, £25 per day.

By agreement of second February, 1886, at Catania, in consideration of the transhipment of some cargo taken on board at Fiume and Trieste for Yew York, Tagliavia & Co. guarantied that the ship should be sent to Boston only, without prejudice of charter-party, and that the ship should not be liable'for this transhipment. Tagliavia & Co., at Palermo, loaded the ship with fruit, macaroni, and sumac for Boston, for which the master signed one bill of lading to Tagliavia & Co., deliverable at Boston, witli freight as per charter-party, and all other conditions, and authorized Tagliavia & Co. to sign partial bills of lading therefor as captain’s agent. Tagliavia & Co. also shipped at Palermo the 600 tons of sulphur attached. The bill of lading for the fruit was signed the day the vessel went to sea.

Tagliavia & Co. also presented, at the same time, a bill of lading to be signed by tho master for tho sulphur, making the same deliverable at Philadelphia. The master declined to sign such a bill of lading for tho sulphur, as he had no authority to do so under the agreement at Catania, requiring the vessel only to proceed to Boston. Tagliavia & Co. assented to such refusal, and asked the master to sign a simple receipt, prepared by him, for the sulphur; and stated that lie (Tagliavia) would tranship it in Boston. Tho receipt was: “Received on hoard the S. S. Karo, six hundred tons of sulphur.” The transaction took placo two hours before sailing from Palermo. Tho vessel arrived at Boston, addressed by the charterers to Messrs. 'Westervelt & Co., who refused to act as such for the charterer. The master then put the vessel in the hands of C. Furness & Co., of Boston, who collected the freight on tile Boston cargo as called for; as set out in the partial bills of lading issued by Tagliavia & Co.

The existence of a bill of lading for the sulphur becoming known, and there being no person to receive the sulphur at Boston, the master, under the direction of his owners, proceeded to Philadelphia. Mr. Maleomson, the claimant, presented a bill of lading for tho sulphur, signed by Tagliavia & Co., naming therein Fratelii Jung as shipper, and was deliverable to liis order on payment of freight. It was signed, “ For the Master, the Agents, Tagliavia & Co.,” and was indorsed, “Deliver to the Canadian Bank of Commerce, Yew York, or order. F. Jung.” This bill of lading was signed without any authority from tlie master. The master had no dealings with any one but the charterers in relation to this cargo. lie had no knowledge, or means of knowledge, of the relation of F. Jung to the sulphur. The libelants claimed the balance duo on tho charter-party as a lien on this sulphur, which Mr. Maleomson declined to pay, and this libel was filed against a part retained for freight.

Mr. Maleomson appeared as claimant of the sulphur, and subsequently to tho filing of tliis libel, and tlie delivery of the sulphur to him as claimant, be paid tlio freight called for by the bill of lading of Tagliavia & Co. on 600 tons, amounting to @586.80, with costs of suit up to that time, which was accepted and paid without prejudice to either party.

It ivas the master’s right, as between himself and the charterer, to collect the entire freight secured by the contract from any part of tlie cargo. Ho might apportion it ratably to every part, and thus collect it from the whole, or allow a part to escape, and collect the entire sum from the balance. There can be no doubt of this. That such a right [654]*654was intended to be vested in him appears from every expression in the contract relating to the subject. While he bound himself to sign bills of lading as presented by the charterer, he stipulated that this signing should be “without prejudice to the charter; the owners having an absolute lien on the cargo for all freight * * due under the charter.” It was important to the master that he should not be required to apportion the freight, which would be difficult and embarrassing, even if unattended with risk; but it was of no consequence to the charterer whether it be collected from the whole or a part. Notwithstanding, however, such was the master’s right, under the charter, he might waive it, or estop the enforcement of it, as respects others. The acceptance of cargo, as by general ship, from one ignorant of the circumstances, or signing bills of lading inconsistent with the charter, would doubtless estop him, as respects that part of the cargo. For the fruit, sumac, and macaroni the master did sign such bills, or rather authorized them to be signed in his name; and these bills, being transferred to others, carried this part of the cargo, subject only to the freight specified therein. The purchasers were authorized to deal on the basis of the freight specified, and would, therefore, be defrauded if required to pay more. I say this with great confidence, notwithstanding some expressions found in Gracie v. Palmer, 8 Wheat. 605. While this case goes great lengths to sustain the ship’s rights, under charter, it docs not, I think, contain anything calculated to cast doubt on the truth of this proposition. The master’s right, therefore, is lost, as respects all the cargo except the sulphur.

Why should he not be allowed to collect the freight due from this? He did nothing to restrict or qualify his right respecting it. The bill of lading held by the respondent is fraudulent, and affects no one but the charterer, who dishonestly signed it.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gracie v. Palmer
21 U.S. 605 (Supreme Court, 1823)
Schooner Freeman, &C. v. Buckingham
59 U.S. 182 (Supreme Court, 1856)
Pollard v. Vinton
105 U.S. 7 (Supreme Court, 1882)

Cite This Page — Counsel Stack

Bluebook (online)
29 F. 652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karo-v-two-hundred-tons-of-sulphur-paed-1886.