Neill v. The Francis

21 F. 921, 1884 U.S. Dist. LEXIS 157
District Court, S.D. New York·Decided September 20, 1884·Published·Cited by 2 cases

Opinion

Brown, J.

This libel was filed to recover $292.50, the price of 65 tons of coal supplied to the steamer Francis at Philadelphia on May-17, 1876. The general owners, the Providence & Stonington Steamship Company of Bhode Island, appear as claimants of the steamer, and deny that any lien was acquired upon the vessel.

The proof shows that in the spring of 1876 the claimants chartered the steamer to one H. M. Hoyt, of Bridgeport, Connecticut, to run as an excursion steamer between Bridgeport and Philadelphia during the centennial season; that the captain of the steamer was designated by the claimants, but that he was to be in the employ and pay of the charterer, who had exclusive possession, control, and management of the steamer during the term for which she was hired; that the charter contained a further clause providing that the charterer should “provide and pay for all the coal, fuel, pilotages, and all other charges whatsoever;” that Hoyt took possession of the steamer under the charter, accompanied her to Philadelphia, and applied to one Ziegler for coal, informing him of the charter; that Ziegler, being a retail dealer only, was unablo to obtain the drawback allowed to wholesale dealers, and thereupon introduced Hoyt to the libelants, who were wholesale dealers, and who, by shipping coal on board under a bill of lading, could procure and allow to Hoyt a certain drawback upon the price; that Hoyt told the libelants, when making arrangement for the coal, that he had chartered the Francis to run between Bridgeport and Philadelphia during the centennial season, and wanted coal for.her; that at the same time he told the libelants “topnake out the bills to him,” which was done, and that he gave to the libelants his check for the amount, drawn upon a bank at Bridgeport, telling them that the check was not then good, but that he thought it would be good by the time it was presented. Nothing was said between Hoyt and the libelants as to any credit of the ship. Hoyt received from the libelants an order on the Beading Bailroad Company for delivery of coal at Biehmond, some two or three miles up the river, and the steamer went there and took it aboard, giving a bill of lading therefor, upon which the usual drawback was allowed.

There is no evidence in regard to the credit of Hoyt in Philadelphia. He was not before known to the libelants. The coal does not appear to have been charged to the ship, but was billed to Hoyt only, in accordance with his directions. One 'of the libelants, however, testified that they would not have sold, on the credit of Hoyt only, if they had not supposed they had a lien on the vessel. It is not testified that anything was said by either about any credit of the vessel, but it is clear that the coal was directed by Hoyt to be billed to him. Neither the captain nor any other officer of the ship took any part in the purchase of the coal. The captain testified that he notified Ziegler, who came aboard the vessel, that the steamer was not to be liable for any supplies; Ziegler, however, denies this. It is probable that the captain’s notice was to some other person. The [923] check, on presentment, was protested for non-payment, and this libel was subsequently filed in September following.

The above facts present a ease in most respects similar to that of Stephenson v. The Francis, 21 Fed. Rep. 715, in which I have recently held that no lien was acquired. The bill of lading, in this case, was a mere form adopted to procure the drawback, and has no bearing on the question of lien. In the present ease there is not, it is true, the same evidence as in the former, that the captain expressly stated to the libelants that the ship would not be bound; but the libelants wero fully informed that Hoyt was the charterer for the centennial season, and having that knowledge they must- have understood, as business men, that he was bound to provide and pay for the coal; and that in applying for the coal in person, and in directing it to be billed to him, he was acting in conformity with his obligations to the general owners, and did not intend that the ship should bo held; and in supplying the coal without any dissent from Hoyt’s proposition, or intimating any claim upon the ship, they must be understood as acquiescing in his proposition, which was, in effect, to furnish the coal on his personal credit only, in conformity with his obligation to the general owner. To my mind, those circumstances, with the giving of the-check in payment, and the absence of all reference to the ship as a source of credit, negative any idea that the ship was intended do stand as security, or to bo bound for the debt. There is nothing unusual or improbable in such a personal trust for a small bill for so brief a period in the beginning of a season’s business. It is the habit of business men, in all branches of trade, to take small risks in this way at the beginning of a season’s trade.

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Neill v. The Francis, 21 F. 921, 1884 U.S. Dist. LEXIS 157 (S.D.N.Y. 1884).

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