Smith v. The Saugerties

44 F. 625, 1890 U.S. Dist. LEXIS 50
CourtDistrict Court, S.D. New York
DecidedNovember 25, 1890
StatusPublished

This text of 44 F. 625 (Smith v. The Saugerties) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. The Saugerties, 44 F. 625, 1890 U.S. Dist. LEXIS 50 (S.D.N.Y. 1890).

Opinion

Brown, J.

The above three libels have grown out of a shipment of a cargo of iee on board the barge Saugerties, by the Treats Fall Ice Company, of Bangor, Me., to the firm of C. L. Iiiker, of New York, in August, 1890. Oil the shipment, a bill of lading for the ice was taken by the company, making the ice deliverable to the company’s own order. After the arrival'of the Saugerties at New York, the captain’s copy of the bill of lading was obtained by the company for the purpose of drawing on Riker on account of the cargo, and, the draft not being paid, the company delivered the captain’s bill of lading, indorsed by them, to the libelants, to whom they also executed a hill of sale. The first libel w'as filed September 23d, to recover damages for non-delivery of the ice to the [626]*626libelants on demand as indorsees of the bill of lading. The second libel, filed October 21st, claims damages for negligence during the transportation of the ice, whereby it became “struck” through steam negligently admitted into the hold. The third libel was brought by the owner of the Saugerties to recover for the hire thereof at $50 per day, upon the alleged promise of the respondent to pay at that rate therefor.

The ice was shipped on board the Saugerties by the Treats Fall Ice Company, under a written contract with C. L. Riker, dated August 12', 1890, which provided, among other things, (1) that the company should ship on board the Saugerties, then on the way-to Bangor, 1,600 tons of good merchantable ice; (2) that Riker should tow the barge, when loaded, with all reasonable speed to New York, and there sell the cargo for the best price obtainable; (3) that he would pay the company’s draft at one day’s sight for the certificated, in-take weight of the cargo, at $2.50 per ton; certificate of weight and bill ■ of lading to be attached to the draft; the said $2.50 per ton being guarantied to be paid to the company in any event, unless the cargo were lost; from the proceeds' of sale Riker, to have $1.50 per ton freight, half the cost of towing, and the cost of discharge, and to advance all necessary expenses incurred after the cargo left Bangor; the cargo to remain the property of the company until sold and paid for; and the net profits to be evenly divided between the company and Riker, who was to furnish a detailed statement of the expenses, and a check to the company for their share of the profits. Riker had chartered the barge at the rate of $50 a day, for the purpose of bringing on the cargo of ice, and also a tug to tow her to Bangor and back to New York. The barge left Bangor August 30th, and arrived near New York September 5th. On August 28th, in consequence of a fall in the market price, Riker wrote to the company requesting them not to draw on .him on one day’s sight with the bill of lading, but promised to pay the amount before he unloaded the, cargo, to which a reply was sent by Mr. Bartlett, one of the company, that he would see him in New York in reference to it. On September 5th, Mr. Bartlett came to New York', and had several interviews during the week following with Riker and his partner without referring to the draft. On the 12th he told Riker he wanted the contract performed, and on the 13th told his partner that he had determined to draw. In the mean time, finding that he had left the bills of lading in Bangor, he procured from the captain of the barge his copy of the bill of lading, telling him that he wished to make use of it for the purpose of drawing on Riker, according to his contract, and gave the captain a receipt; promising to send him one of the other bills of lading as soon as he returned to Bangor. On the 15 th, a draft at one day’s sight- was drawn on Riker by Mr. Bartlett in the name of the company for $4,000, attached to the master’s bill of lading, which Mr. Bartlett indorsed in the name of the company, and presented for acceptance to Riker. It was,duly protested .for non-acceptance, and on the, 19th duly protested for non-payment. On Saturday, the day following, Mr. Bartlett executed a bill of sale of the ice in the name of the firm to the libelants, .and delivered to them the indorsed bill of [627]*627lading that had been attached to the draft. On the same day, the libel-ants demanded of the master and owner of the barge a delivery of the ice under the bill of lading and bill of sale above stated. In the interviews that followed on the same day, the owner of the barge referred to the claims of Riker under his charter of the barge, and his payment of $900 on account of the charter money, and of some $800 in addition for towage; but he offered to deliver the ice as desired if the libelants would indemnify him against any claim of Riker, which the libelants refused to do. Mr. Genthner, the owner of the barge, stated he would consult counsel, and answer further. He was notified by Riker not to deliver the ice to the libelants, and would do so at his peril. On Monday, the 22d, a notice somewhat similar was served by Riker on the libelants, and notice was also given them, on behalf of Mr. Genthner, that security against Hikers claim was required, and that the captain’s copy of the bill of lading- was insufficient. On the 28d, the first-above libel was filed for non-delivery of the ice on the libelants’ demand. On the next day. Mr. Genthner received from Mr. Bartlett, who in the mean time had returned to Bangor, another copy of the bill of lading, as promised to the captain; and no further steps having been taken in the mean time by Riker, and an offer having been made by him to waive his claim for the moneys advanced by him, if the company would release him from his guaranty, Mr. Genthner, by his attorneys, on the 24th, agreed to deliver the ice as requested by the libelants upon the latter’s promise to pay $50 a day for the barge, allowing a reasonable time thenceforth for discharge, and computing from the 30th of August, up to which date Riker had paid at that rate.

The libelants, on the 20th or 22d, had made an agreement for the sale of the ice at $3.50 per ton, deliverable at Hoboken, and had ordered the barge there. By her failure to proceed at once, upon her arrival there on the 25th' a further delay of three days arose in getting a berth; and when rhe discharge was commenced, ice having fallen in price, the purchaser, after the discharge of about 80 tons, refused to accept any more, on the alleged ground that the ice was unmerchantable in quality, in consequence of a large proportion turning out “struck.” The cargo was afterwards sold by the libelants at auction, upon notice to Mr. Genthner, at 65 cents per ton. The purchaser resold it-at $2 por ton, and its dis-cnarge was completed on the day of the close of these trials, November 11 tli. On the trial it appeared that the bill of sale of the ice to the libel-ants on September 20th, and the delivery of the master’s copy of the bill of .lading indorsed by the company, were for the benefit of the latter, and for their convenience only in the transaction of any subsequent business in regard to the ice in New York, and that it was accompanied by their guaranty to the libelants to hold them harmless, and to pay them a commission for their trouble. While the nominal title to the ice, therefore, was in the libelants, their rights were no greater than those of the ice company.

1. The first libel was, in my judgment, prematurely filed, both because the ice company could not cut off the rights and interests of Riker [628]*628in the cargo in that summary manner, and because they could not lawfully require the barge to deliver the ice upon the captain’s copy of the bill of lading while the other copy of the' bill of lading was still outstanding.

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Cite This Page — Counsel Stack

Bluebook (online)
44 F. 625, 1890 U.S. Dist. LEXIS 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-the-saugerties-nysd-1890.