King v. Shepherd

14 F. Cas. 545, 3 Story 349
U.S. Circuit Court for the District of Massachusetts·Decided May 15, 1844·Published·Cited by 9 cases

Opinion

STORY, Circuit Justice.

This cause has been elaborately argued on both sides, and in its actual presentation it embraces questions •of some novelty and of no inconsiderable importance. The suit is an admiralty suit in personam, founded upon a maritime contract .and shipment under a bill of lading of a box of gold sovereigns of the value of ten thousand dollars — shipped on the first of November, 1S42. on board of the ship North America, of which one George S. Hall was master and part owner, at the port of New York on a voyage from thence to Mobile. The bill of lading was in the usual form, and contained a description of the box as containing ten thousand dollars in gold, and the usual exception of “dangers of the seas.” In the course of the voyage, the ship got ashore on the Bahama Banks, by which her rudder was knocked off, and a temporary rudder having been made, she was gotten off and sailed on her voyage, and she was afterwards, apparently from the difficulty of steering the ship with the temporary rudder, and from the .strength of the winds, wrecked on the Florida Reef about the 22d of November, 1S42, and lost. While on the reef (the Honda Reefs) the ship bilged, and the master sent for and employed several wrecking vessels, commonly called wreckers, to assist in saving the cargo, and the materials of the' ship. There was. besides the box of gold, another box containing $1000 in silver on board. The box of silver was found and saved. The box of gold was not found, and the loss of it has not been in any manner satisfactorily accounted for. That it was on board and safe at the time when the ship was wrecked on the Honda Reefs is admitted. That it was not lost by the stranding and wreck of the ship or submerged in the ocean, seems to me entirely clear. The loss can be accounted for only by supposing, that it was embezzled by the master of the ship, or by his officers and crew, or by the persons employed as salvors— amounting to some thirty or forty persons. It appears, that when the ship sailed from New York she had but a small cargo on board, consisting of materials of and for carriages, coal in casks, and goods in casks, and some other merchandise. She had a large number of passengers on board. When she struck on the Bahama Banks, the passengers left the ship and went on board of a schooner, called the Ellen, which was near them, and the master of which contracted to carry the passengers to Mobile. Captain Hall concluded (at first) to send the specie to Mobile by one of the passengers going there in the schooner Ellen, and accordingly he caused the specie to be removed on board of the schooner. He afterwards changed his mind, and it was brought back again and taken on board of the ship. Up to this period the specie had always been kept in one of the state rooms in the lower cabin, under lock and key. It was returned there; and a day or two after-wards the captain caused it to be removed into the run, deeming it, as he said, a place of more safety, especially while the crew were fixing the temporary rudder and constantly passing through the cabin. It is fully established by the whole current of the evidence, that the run was not separated by any bulkhead from the hold, and that it was easily accessible therefrom by the crew and the salvors. The cargo and materials saved were carried to Key West, where regular proceedings were instituted for salvage by the salvors in the admiralty court there, and in one of the allegations, the libel expressly charged that they (the salvors) believed the missing box of gold was either in the possession of Captain Hall, or that he was aware of the place where it was secreted. To this allegation Captain Hall in his answer excepted “as being impertinent and improper, and prayed the same to be stricken out by the court.” But in answer to one of the interrogatories propounded in the libel, he said “that he does not know where it (the box of gold) is.” No allegation was set up by Captain Hall, in his answer, of any embezzlement of the box of gold by the salvors — nor ' [548] ■was any mode suggested as to its loss. The court of admiralty decreed a salvage of 45 per cent, to the salvors; but refused to decree, that the residue be paid over to Captain Hall for the use of the owners thereof, upon the avowed ground, that the circumstances of the case affected him with such apparent fraudulent or improper conduct, that he could not be safely intrusted with it. From this decree an appeal was taken to the court of appeals of Florida, so far as the decree refused to restore the residue of proceeds, after deducting the salvage, to Captain Hall — leaving the decree as to salvage to the salvors to stand without question; and upon this appeal the appellate court reversed the decree of the superior court, and ordered the residue to be restored to Captain Hall, stating however in their opinion, “that though the facts proved may well raise a suspicion, yet they are not of a character sufficiently conclusive to justify the withholding of the residue of the proceeds in question, and they must, therefore, be restored to him” (the captain).

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King v. Shepherd, 14 F. Cas. 545, 3 Story 349 (circtdma 1844).

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