United States v. Cornell Steamboat Co.

Supreme Court

United States v. Cornell Steamboat Co.

267 U.S. 281, 45 S. Ct. 239, 69 L. Ed. 613, 1925 U.S. LEXIS 756

CourtSupreme Court of the United States

DecidedMarch 2, 1925

Docket265

StatusPublished

Cited by7 cases

This text of 267 U.S. 281 (United States v. Cornell Steamboat Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

United States v. Cornell Steamboat Co., 267 U.S. 281, 45 S. Ct. 239, 69 L. Ed. 613, 1925 U.S. LEXIS 756 (1925).

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Opinion

*285 Me. Justice McReynolds

delivered the opinion j>f the Court.

This proceeding was instituted to recover the. sum of deductions made by the United States from monthly bills rendered by appellee for the hire of tugs. -

During 1917 and 1918, under informal charters evir denced by letters, appellee hired twelve tugs to the United States for use in and about New York Harbor. The specified price was “ for each and every day of the charter period,” and the owner agreed “ to furnish everything for these %ugs with the exception of coal and water which you are to furnish.”

The vessels reported for service in accordance with the Several .contracts and the plaintiff rendered monthly bills *286 at the per diem rate stated therein. Those for December, 1917, were paid as rendered. Thereafter deductions were made which' amounted in all to $24,822.48. They were based upon the vessels’ logs, kept by their captains and engineers as directed by the Army Transport Service, and were entered if a boat reported with a short crew, or not in condition to perform the service required, or if too long a time w,as consumed in taking on supplies. The owner saved its rights through proper claims and protests.

While in the service of the United States the “ Ira M, Hedges ” sank. It was raised and repaired by and at the expense of the owner, and was subsequently used by them. One of the Challenged deductions was for loss of time in-. cident to this accident.

“ During the time when the tugs hereinbéfore mentioned were in the service of the Government, the, Army .Transport Service had the entire use of the tugs and they were subject at all times to the orders and directions of the officers of the Government, and at no time during the period did the plaintiff have the use of and [it] did not in any way-interfere with or .¡direct the operations of the' said tugs.” i

The United States1 maintain that the owner did not part' with possession, command and navigation during the charter periods; that the charter was' for service, and not a demise; ,and that consequently they rightly made deduc-’ tions for the time the vessels were not at their disposal.

Relying upon the doctrine approved in United States v. Shea, 152 U. S. 178, the Court of Claims concluded that, the charter amounted to a demise and that the deductions were not permissible. It accordingly sustained the claim of the owner, appellee here. Accepting the facts as. found, wé agree with that conclusion and affirm, the judgment.

Affirmed.

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*285 Me. Justice McReynolds

delivered the opinion j>f the Court.

This proceeding was instituted to recover the. sum of deductions made by the United States from monthly bills rendered by appellee for the hire of tugs. -

During 1917 and 1918, under informal charters evir denced by letters, appellee hired twelve tugs to the United States for use in and about New York Harbor. The specified price was “ for each and every day of the charter period,” and the owner agreed “ to furnish everything for these %ugs with the exception of coal and water which you are to furnish.”

The vessels reported for service in accordance with the Several .contracts and the plaintiff rendered monthly bills *286 at the per diem rate stated therein. Those for December, 1917, were paid as rendered. Thereafter deductions were made which' amounted in all to $24,822.48. They were based upon the vessels’ logs, kept by their captains and engineers as directed by the Army Transport Service, and were entered if a boat reported with a short crew, or not in condition to perform the service required, or if too long a time w,as consumed in taking on supplies. The owner saved its rights through proper claims and protests.

While in the service of the United States the “ Ira M, Hedges ” sank. It was raised and repaired by and at the expense of the owner, and was subsequently used by them. One of the Challenged deductions was for loss of time in-. cident to this accident.

“ During the time when the tugs hereinbéfore mentioned were in the service of the Government, the, Army .Transport Service had the entire use of the tugs and they were subject at all times to the orders and directions of the officers of the Government, and at no time during the period did the plaintiff have the use of and [it] did not in any way-interfere with or .¡direct the operations of the' said tugs.” i

The United States1 maintain that the owner did not part' with possession, command and navigation during the charter periods; that the charter was' for service, and not a demise; ,and that consequently they rightly made deduc-’ tions for the time the vessels were not at their disposal.

Relying upon the doctrine approved in United States v. Shea, 152 U. S. 178, the Court of Claims concluded that, the charter amounted to a demise and that the deductions were not permissible. It accordingly sustained the claim of the owner, appellee here. Accepting the facts as. found, wé agree with that conclusion and affirm, the judgment.

Affirmed.

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Bluebook (online)

267 U.S. 281, 45 S. Ct. 239, 69 L. Ed. 613, 1925 U.S. LEXIS 756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-cornell-steamboat-co-scotus-1925.

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