The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-11-25
United states Circuit Court.
Before Judees Nelsou and Rata

decision
motion for receiver and injunction on bill hed
by the complainant against the defendants, for the
purpose OF resembling contract entered into
the parties the 18th Aug lS47 by which the defend
ants agreed to build the steamships provided for in the
fourth section Of the act Of Congress entitled An act
stesmships passed March 3, 1917 sess Laws ls47, p
49, in the court should refuse to decree
ecipdment OF the contract, that then specific per-
Torrance be decreed according to the terms and
dtons therein stipulated praying an account between
the parties &C. The fourth section OF the sct autho
rizes the Secretary Of the Navy, behalf Of the
government to contract with the complainant for the
trsnspoi tation of the United States nail from New
York to New Orleans, hi monthly and back. touching
at Havana and other intermediate ports and from Hs
vsna to Chagres and back twice month-ths mail to
be transported in least ave steamships OF not less
than fifteen hundred tons burden and propelled by
engines of not less than on horse each
to be constructed under the superinte ndence and d.
rection Of naval contractor In the employ Of the
Navy Department and to be constructed to render
steamers Of the first csss The section contained
pioyiso that the Secretary, at his discretion might
burden and engines in proportion TO be employed in
the mail service between Havana and Chases 1t also
should not exceed the sum Of $4,000 annually
The complainant entered into o contract with the
Secretary Of the Navy, under this act, the 10th
April lS47, for the construction OF these ships by
which he bound himself to construct and Them
aud described in the It provia.d that the
Secretary should determine to employ steamer Of not
than sx hundred tens burden for the service be-
tween Havana and Chsgres, in lieu of Of the i've
ships Of fifteen hundred burden, the palnant
should build Of that description The two FIRST ships
to be completed and in readiness for the
before the LIST Of October s4S and the remaining
two Of fifteen hundred tons burden or before the
LIST Of October 1S49 with such improvements Ia model
engines, boilers and finish, should be agreed upon
by the parties to the contract There is Limitation
the time within which the firth steamship in
which the Secretary reserved the right
ducs the size should be completed and ready for SER
vice. The Secretary, behalf Of the government in
considers alton Of the promises, agreed pay the
complainant, as compensation for the full perform
ance Of service carrying the $500 900 per
IN II provided, n
| ssmuch rs the ships would be- completed a. different
should commence the service soon she would be-
in all respects ready therefor according TO the terms
Of the contract and that pIoportionats part OF the
be paid for the partial service thur rendered And
finally that the contract should continue In force for
the period Of ten the term to commence from
the actual CONNIE ment Of the service IS specified
On the 18th OF August Of the year the plain
ant entered into an agreement with the dsfsndants
Law, Roberts, Wetmors, and Cromwell by which, In
consideration Of assignment Of the contract with
the government to three trustees OF which Law ana
Re berts we're two they covenapted agreed
struct finish and completely equip the i've mships
be required by the department and 20 provide for
and pay all moneys necessary therefor; the ships and
their machinery to be built and the vessels equipped
under the and control Of George Law,
Of the parties and that they would In all things
fulfil and perform all the duties and services which the
complainant had agreed to be done and performed In
his contract with the government It also coysnsnted
and sgreed that the assignment OF the complAnants
contract the three trustees should be upon the fol-
lowing trusts IL That the trustees should cause
the steamships, as they shall, from time to
time, be built, to be registered In their names;
and that they should have the sole managsms and
direction Of the ships and each Of them and Of their
enplo, ment .pps'nt and pay all SUB omc.rs, agents
for the calling navigating Of the vessels or for the
management Of the business thereof, vt the various
ports and places which they may trade or stop on
such terms for such times and with such powers and
duties as TO them may seem Mt and proper They are
make all necessary contracts and agreements for the
employ Of the vessels and to exercise and perform
such powers and duties In the steamers ~ may BE-
necessary for performing the duties and services re-
quired by the Navy department for the advantage
and profit OF the parties concerned: And second 10
collect and receive all the feghts and earnings OF the
vessels and ell Gums to be paid by the government,
for transporting the mail which may become due or
payable on account thereof ana make All aisoufss
the vessels And third To render TO the complain
ant and the DEFENDANTS respectively quarter yearly,
account In writing Of ell their receipts and expen
dtures In the discharge Of their trust the frat &C.
count be rendered AZ the expiration Of three months
| from the commencement OF The service: BY all the
steamships or any OF them and apply the net earn
ipgs which shal remain at the expiration Of every
quarter after paying all disbursements " the YES
sells, chsrses and expenses Of every Kind, to which
the trustees may be subjected, in the first place,
to the payment Of sl26oo, quarterly, one half to
| the complainant and the other half TO the defend
ants and the residue to the repayment OF all sd'
vanoes made by the department rat-sSy, in proper
ton to the amounts advanced by them, respective
y in building equippng and finishing these ships, TO-
g-tber withl.gAl interest ands commisn Q. Ten per
cent on oil sums advanced and fourth, that when
all the moneys advanced BY the defendants pursuant to
the agreement In building and completing the ships,
with interest ana eommissoDs, and all expenses ana
responsibilities incurred by them or By tbs trustees
be satisfied and paid that then the the trustees
divide the earnings. including the mail services,
quarterly into parts -hereof part should
be paid to the complainant aud the other TO the de-
Bosnts then the vessels be held BY the trustees
in trust for the complainant and the defsndants In
equal shares IL Is further provided that the trustees
may consent TO any modification of the contract which
tb. navy Department shall require and which in their
opinion. be for the advantage OF the psrtes ana
also that any modification rsn.-sl or eontnusnos .,
the navy department by either OF the PARTIES should
ebure TO their joint benefit. The bill OF complaint
| which a. founded upon these several agreements,
| particularly upon that of the nth Of August,
charges, that the defendants undertook the con.
contract TO be called the ohio and Georgia. but that
In the Of 1s4s they became unabs TO proceed
TO the &C m plston the for want u funds and
that therruren the trustees prevent the entire
pension 81 the work, and the forfeiture OF the CEN
paipants contract With the government assumed upon
tb,ms.lyes the building aud completion Of the two
ships in their characters as trutees and Tor that pur-
po,s procure alton Of tn. contract and an I'D
Of money the In pursuance OF an
act Of tonpr,ss Of the Sd August, ls4s TO Wit the
Of $4,000 aud that in order to secure the repay
m.ut Of the moneys so advanced, and In conformity
with the provisions Of the act they executed mort
gage 81 the ships to NJ wetmore As trustee for
| the eovsrnment, on the 9th September Of the same
y,sr The bill further charges that the trustees pro-
cured o further modification whereby IL was agreed
that the steamship Falcon should be received 10 lieu OF
the aler sbp contracted TO be built and which said
ship has been employed In Carrying the msn pc
and Cbasres since the month Of December, ls4s;
sps also freight and passengers, under the direction
of the trustees; and that they nsve oeen rsoeiuss
from the government . compenfaton' unosr TINS
contract, at the rate Of IS 900 per months and Ter
freight and passengers $4,000 and farther that the
trustees by the aid Of these funds and the advance
from the government, have completed the steamship
ohio With the exception Of copperng her. ans are pro-
c..dipe TO finish the Georgia and that Law and no.
b.rts two of the trustees and parties the contract
Nth complainant to build the chips, and 2. NJ Wet
more slso enc of tsid PARTIES Tor the purpose on a.
frsudipg the com plspan Of deprivns him Of his
interest the ship aud tbs benefit Of his contract ds
the 18th September, lsss register the ONO In ths
ipdi
the ompsinsnt and further that the Ohio 80 Tar
CON plet.d that che has been put upon the line and
employed In the service 81 carryng the mail from Nev
lefk to New Orleans but the dsfenoants deny tnat
che has been accepted BY the government or 70 en-
pioy in this under the trust ana that the
trustees, Law aud Roberts, reuset to co operate
with the other trustee Mc,sipe IN managing the al.
fairs 81 the .bip permit the ssd Mcvsue 90 psr-
tcipste In the ms NJ, Of the same according to
the terms and CONDITIONS OF tine aBeenrn o'