The Iola

189 F. 972, 1911 U.S. Dist. LEXIS 235
CourtDistrict Court, S.D. Georgia
DecidedSeptember 22, 1911
StatusPublished
Cited by5 cases

This text of 189 F. 972 (The Iola) is published on Counsel Stack Legal Research, covering District Court, S.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Iola, 189 F. 972, 1911 U.S. Dist. LEXIS 235 (S.D. Ga. 1911).

Opinion

SPEER, District Judge.

The substantial controversy which must be determined may be seen from the statement following:

The Blackstaff Engineering Company, a corporation with its principal office in Philadelphia, made a contract with the government for the construction of jetties in the St. Johns river near Mayport and Jacksonville, Ela., and near Brunswick, Ga. In this work the Blackstaff Company required a tug and a flotilla of barges and water carrying vessels. It secured by contract, or charter party, made with the owners ■of the tug Iola, four barges and two water carrying vessels. The owners were of Mobile, Ala., and were 'represented by Lee Kimball, their agent. The libelant, the Standard Fuel Supply Company, a Georgia corporation with its principal place of business at Savannah, furnished a quantity of coal upon contract with the Blackstaff Company for the use of the tug Iola, and made certain advances for food, provisions, repairs, and other supplies. The coal bill amounted to $521.41, advances for food, repairs, and other supplies to $123.71; and at the request of the Blackstaff Company the libelants paid in cash certain drafts of Kay & Doggett, attorneys of Jacksonville, Fla. These were made for the purpose of paying the amount claimed on a libel against the Iola, and certain expenses and attorney’s fees connected with that libel. This sum amounted to $285.87. The total amount claimed by libelant is $1,-113.54.

The greater portion of the evidence is documentary, and, as there was little ambiguity about this, the cause might have been determined upon construction of this evidence, but for the very copious and valuable briefs of the respective proctors, and the immovable opposition [974]*974of these gentlemen upon every' remaining -question involved. It was therefore deemed proper to take the 'case under advisement.

[1] A prime consideration is the construction of the charter party. This is in evidence, and was dated July 26, 1909. It is material-to perceive that the charterer, namely, the Blackstaff Company, agrees that it will not- suffer any liens to attach to the property thus leased; that it will not permit any indebtedness whatever that might constitute a lien on'th'é'. property to run or’accrue against it, except those indebtednesses which are incurred incident to the ordinary expense of the operation of said floating property; that such operating expenses shall be settled promptly at the. end of eách-month, and a statement thereof furnished to the lessor; that said floating property is hired by the Blackstaff Engineering Company to be used by. it in the engineering aiid construction work in the harbors of Mayport.and Brunswick, and such other places on the Atlantic or Gulf Coast -as said company might desire; that the property is to be returned to the lessor on August 2, 1910, at Mobile, Ala., in the same good order and condition as when turned over to the charterer, reasonable wear and tear excepted. The charterer, the Blackstaff Company, gave bond in the sum of $25, with the Fidelity & Deposit Company of Maryland as surety, for the faithful performance of this contract. The bond is also in evidence. Tt is most material-to bear in mind that the tug, which was new and of moderate power, was chartered for construction, engineering, and harbor work in inland waters. It contains no stipulation for deep sea tow-age, and none for assignment to another for any purpose. This com. clusively appears from the second clause of section 6 of the charter párty:

. “It .is expressly understood aud agreed, however, that it is within the contemplation of the parties hereto that said floating property is hired by said second party to be used by it iri the engineering and construction work in the harbors at Mayport and Brunswick, and such other places on the Atlantic or Gulf Coast as the second party may desire.”

It is to be observed that, so far as they might do, the owners sought by .the charter party to protect themselves from misadventure, failure of contract, or other failure on the part of the Blackstaff Company. It seems clear that there was no privity between the owners of the Iola and the libelants, the Standard Fuel Supply Company. It seems equally clear that the libelants made all of its contracts in the main not with the Iola, but with the Blackstaff Engineering Company. The first material communication on the subject shows this to be-true, and also clearly indicates a distinct knowledge on the part of the libelants of the character of the work in which the tug was engaged. This letter is dated June 5, 1909, and is addressed to the Blackstaff Engineering Company, 1332 Walnut street, Philadelphia, Pa. It is evident that the supply company did not have the Iola in mind, for this was more than six weeks before the Blackstaff Company had chartered the Iola. The letter is as follows:

“Gentlemen: We understand you have recently secured a contract for concrete work, and, as we are in' a position to furnish you the necessary material -at'a very attractive figure, we will appreciate your calling on us for prices, [975]*975advising approximately how much gravel and sand you may need, and point of delivery.
' “Thanking you in advance for au inquiry,
“Very truly yours, Standard Fuel Supply Co.”

On June 9, 1909, the Blackstaff Company replies from Philadelphia as follows:

“Gentlemen: lleplying to your communication of .Tune 5th, we have to state that the contract to which you refer -floes not include any concrete work, and we do not, therefore, expect to be in the market for sand and gravel.”

On June 14th libelant wrote again from Savannah to the Blackstaff Engineering Company at Philadelphia:

“Gentlemen: We have your favor of the 9th instant, and in reply beg to stale that we are operating a coal yard at Mayport, Fla., just-alongside of where you will be doing your jetty work, and we will be glad indeed if you will let-us furnish you with what steam coal you may need for this work. We have a regular agent at Mayport, and If we can be of any service to you while you are doing this work, we will be glad to have you communicate with us.”

To this letter Blackstaff replies on June 19th, informing the stipply company that their representative expects to be in Jacksonville within a few days, -and will call to see them.' All of this was anterior to the charter party, and to the appearance of the lola in the Florida and Georgia waters.

The next letter in evidence is from the Jacksonville office of the Blackstaff Company, and is addressed to libelant’at Savannah. , It is dated October 23d, and reads:

“On September 13th our tug lola took from your dock at Jacksonville 28100 # of steam coal trimmed in bunkers, and your Mr. Jewett advised1, that the price would be $3.75 per net ton. Up to the -present writing we have never received a bill for this coal, although we have spoken to Mr. Jewett several times concerning same. Idease mail bill to the Jacksonville office as soon as possible, and also advise what rate per ton you will charge for coal if taken at Mayport by our tug and derrick barges. Your prompt reply will be appreciated.”

To this letter libelant replied as follows on October 25th:

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Bluebook (online)
189 F. 972, 1911 U.S. Dist. LEXIS 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-iola-gasd-1911.