Steamship Rutherglen Co. v. Howard Houlder & Partners, Inc.
Steamship Rutherglen Co. v. Howard Houlder & Partners, Inc.
Opinion of the Court
These are a libel and cross-libel filed to recover claims arising out of a shipment of a cargo of railroad iron on the steamship Rutherglen on a voyage from New York to Dalny, Manchuria, and thence to Takow, Formosa. The original libel was filed by the owner of the Rutherglen against Howard Houlder & Partners, Inc., the charterers of the steamer, to recover upon three claims: (1) A claim for an unpaid balance of the lump sum chartered freight of £277.7.7, amounting in United States currency to $1,349.86. (2) A claim for 15J/> days’ demurrage while awaiting discharge at Dalny, at the rate of £45.14 per day, making a total of £708.7, or, in United States currency, $3,447.17. (3) A claim for an excess agency fee charged to the steamship by the agents designated by the charterers at Takow in the sum of £14.10, or $70.56. The cross-libel is to recover damages because the steamer was not loaded to her full capacity. It alleges that the steamer when she sailed had 13,112 empty cubic feet of space, which would have stowed 325 tons of cargo, and that the charterers were damaged by the steamer’s refusal to take said additional cargo in the sum of £466.17.6, making £169.9.11 due, in addition to the sum of £277.7.7, withheld by the charterers from the lump sum freight.
The charterers rely on a clause in the charter party that the vessel is to be discharged according to the custom of the port, and have called a witness who testified that it was the custom of the port at Dalny for steamers to discharge in turn. This witness had been at Dalny but once, and was hardly qualified to prove custom. But probably the alleged custom was nothing but the usual practice of harbor masters in all ports. A common sense of justice would lead any harbor master to send steamers to vacant berths in their turn. But I do not understand that the libelant complains that the Rutherglen was not admitted to a dock deep enough for her draft as soon as one was vacant. The complaint is that no lighters were provided! so that, by taking off a part of her cargo, she could have gone at once to a shallower berth which was vacant.
“If the charter party contains an agreement between the owner and the charterer which cannot he performed and cannot even be entered upon when the cargo is shipped or wiien bills of lading are signed at the loading ports, the charter must continue in existence until that portion of the contract relating to some other placo and to a future time is completed.”
If the provision in the charter party that the charterers are to provide lighters, if necessary, at the port of discharge is nullified by the cesser clause, there was no reason for inserting it in the charter party. It never had any validity. It died at birth.
In this case the Manchurian Railway was being constructed. Very large shipments of railroad iron and materials for the construction of the railway were being made deliverable at Dalny. It was apparently a port in which usually not a large business was done. There were but few docks there at which ships of large draft could lie. There was a probability of congestion there. It was entirely competent for the parties to stipulate which should be responsible in case of delay
• My conclusion, therefore, is that the Rutherglen Company should recover the sum of $3,447.17 for demurrage, and $70.56 for excess of agency fees, with interest and costs, and that a reference should be ordered to determine what amount, if any, should be deducted from the freight by reason of the claim set up in the cross-libel.
Note. — The memorandum of Hough, District Judge, in the case of Union Steamshipping Co. v. Gans Steamship Line, referred to in the opinion, is as follows:
“The exception to the sixteenth article of the answer seems to me well taken, in that the cesser clause is not a defense to this action.
“If the charter party contains an agreement between the owner and charterer which cannot be performed and cannot even be entered upon when the cargo is shipped or when bills of lading are signed at the loading port, the charter must continue in existence until that portion of the contract relating to some other place and to a future time is completed.
“This charter party does contain such a provision, namely, that the ship will be consigned to the charterer’s agent at the port of destination, and that such charterer’s agent shall (in effect) receive as and for his compensation no than £10.10.
“I remain of the opinion that this clause can be given no meaning whatever Unless construed to be a warranty or guaranty on the part of the charterer that no more than the stipulated fee is exacted.
“It is no answer to this to say that the owner should'not have paid more than £10.10, nor is it any answer to point out that the charterer’s agent became the owner’s agent by the act of consignment. These statements may be true, but there was an antecedent duty upon the charterer to see to it that the agent nominated by the charterer agreed to serve for the stipulated sum. .Therefore,the exception to the sixteenth article of the answer is sustained.
“But this does not go to the kernel of the controversy. The seventeenth and eighteenth articles of the answer (taken together) seem to me to clearly assert that the payments or exactions which are the subject-matter of this, suit were not paid to charterer’s agents but to persons lawfully appointed in France and clothed with power of demanding and obtaining .these fees no matter whether they were or were not the ship’s agents or whether or not.*921 they had the ship consigned to them. If this be not true, it is at least the construction of the answer most favorable to the pleader, and the court is bound to accept it.
"It could not have been the intention of the parties that, if A. B. at the port of Bordeaux was under French law entitled to collect a certain fee for entering the Marks at that port, such expense could be pxit upon O. I). by an agreement between the owner and charterer of the Karma to the effect that the steamer should be consigned to O. I)., and he be paid for all his services a smaller sum than the statutory cost of entering. In other words, the ship’s agent in America attends to the entry of a vessel consigned to him as a part of his agency duty. The answer in this case declares in effect that in France he cannot do it, hut some official must do it, and must be paid for it at statutory rate.
“If this be true, the shipowners have in effect been taxed, and lawfully taxed, and it was beyond the power of either owner, charterer, or agent, to avoid or diminish said tax. This is substantially the point as to which there was no proof in The Gape Breton arbitration, to which Mr. Woolsey refers. In this case there may be no proof when the trial comes on, but the pleading avers a defense which I think good.
‘•The exceptions to the seventeenth and eighteenth articles of the libel are overruled.”
See note at end of case.
Reference
- Full Case Name
- STEAMSHIP RUTHERGLEN CO., Limited v. HOWARD HOULDER & PARTNERS, Inc. HOWARD HOULDER & PARTNERS, Inc. v. STEAMSHIP RUTHERGLEN CO., Limited
- Status
- Published