, 1869-04-22
THE COURTS OF LAW ARD Equity.
Qnited ~tuft.s t'ourtp,

Tic soi,,n ing imJ+,r,ant :.utrl,Y decision was
rendered yesterday, hs .1utIc Dru1nnond:
There vas i'irs1ian submitted to tho Court
N."ul. The lark was sold Oh tho ed day Of Feb
ft.:Ty. laG1, under an order q! The COuft, upon
ihr salc brought over seven thousand dollars
Alter paynE NIL the admiralty lien. there Ii
plsl remaining IN the registry. The question Is as
u the distribution uf shat surplus .
Illrrr are various claims tEalnst the proceeds,
consisting Of mortgages. mud also OF material men
far supplies 1nI1lisltti to tile lark
The mortgages were made and executed in Ch!-
carl, Whcrr the IHortEarDrs and mortgages re-
Erit, uud were recorded in the office Of The Col
lcctur of Customs, but nowhere Else They we're
all ttcortltsl, as understand, before nnJ OF the
supplies were furnished. ard the controversy arls-
tLc,. clal,,,s upnn the peucectls-whrther the ma-
ttssAl :lel sho.l f,t irst paiu or the moEts:scees
a",ic of these 'nticsal men have maritime liens,
LII; Us ttis Court has decided and rs other Admi-
Til, Courts Rave dtrFlel although they might
la; have maritime liens. they could cn.ne Ia and
~ gEA distribution u 1 tnc pIoceeas n pEeiGso
owner could receive payment U! anv proceeds re-
1.4:nsng III touEt, tau-c rersos VIII h4a liens un-
itr thu state laws, although they might not be OF
t1sitlttInc character, should N paid. The point
Is, whether the mortgages arc in the aame POSI-
tluu as the oWnrr of the vcsse whether We are
tt 1lAr Up thrse leus, or Claims, In the order OF
rl:rr 1a:e, anu direct thc payment to IN. made
c.Ill1lE to the law of priority.
i ~ Ike observed that, III all these cases, The
1savs7rage IL given SECURITY ~ the party. The
NOR r.lnr ordinarily re.natns IN The possession OF
ll Sc--eL lHfuufLl lllHl rae HAElous csAltnS arse
adjust lhe vc,sel II is 50 LII the cast u the owner
w,sc there l. III mortgage whatever, and, IN SUCH
c.ee. II Aecs eGu1tatc ttia: tile c!allAs which TX
i: a:A!ns1 the .cs-ti AID which n7ose In consc-
Gs:rt.,' ~ his act, :houlI IL pail before he
n:ut>'I is. whcn the vessel Is so!i, and the
s. d, nm , rsl1in ~ .,, ~ , EFT. 5n,o, no,% 1 i ,e
c;.st e muTtracte's Their .rl,s III Just ~ strong
lc equity Ut the material snea, i'raviiel il Is
a,ul tsc,'lnys paramount, both against the owner
al! sv.itlst Iii. ohc VII" MA: have u mortgage or
p,t:ry allt,il,r clail!l uy1,t the vessel.
1ne ailen:lu,l Of the cuurt "as directed TO the
or The -Etna Insurance f"'nrlny Y. Atlr!ch,
% New iesk. ". Which tec1us rather TO to
tr.t..7i upon thc groIAd ,,ss That tas ~
i.:.. ~ ,ras,tnc ior The recording Of coavcyanees
- a:.,ts, the the crca,,ors % of tic vessel, where the
mortgage has hot lttn rccot.ieA ~ cohlo!fhstt
S"'.es ~ /" lie co-rect1es. Of ta:., .iccsson, i
w,lli EGetll 10 funn, 1l ncttesArs consequence
ir,ll the ro~ G. u consress "'e. 1ais slrcits Of
p-,.I e1tr that It cuHh provide for the kaie null
disposition os It, u1nt -. c!.r1i''Ar!nE it, and
c,.;,I declare what un'i Ike fttaeIt q! till vi
s,;, ur uf y mortgage, hxIuthec:luon or c4,nvey.
,1,,. lrhtrw;se, UI couree. there wauiI br nt
nt..,,inr in tbs valid AMI 'saosis!nS t'Eht On M
Trt II CnEeress: neither would mere se ,e any II
iEu tt u Congress III ft4auoa ~ t'c LIZA 1ossc W
hv,n,t!.calou CT yeSSeIs .. ,- .
ss understand the trst section Of the act Q
1pl, ~. ls. declaring sna. no ",a u =, ear am
yr-sri ur ilaH III any Vessel uf the cn1.e, lay, -
i u; valid against any pcr5on otaes .aa ~ ~.
MT.n,,s having actual notice thereof unless sue
s,.l. nl sale, iuo1.glE-, hypo,htcaton or eonSey
A.sr tc recorded III me vince ., nv rset<'ert an
! Il.,en: Whe5v sael ysssel ~ s ,naIc an
-' .reosle,!, II rhal1 take effect and De blnaink
To uiicE Iast-s IT r.,l.rst, mortgage, " " y
tNss1 In m my msas"r md me paTs no,,sc Woui
= gaod any ~ay' hut this !a~ declares 1naa 1aa,1
put As to other railies, and there CO
s* no os!ec1 whatever In requiring II 10 20 =
nSM effect 50 tha. II seems to me- the mostgs
III properly, tc1ns here, and 1he lnurtgage ben
executed and recorded here VITA The CoIlector {
the Fen - ct ehlcago IT, th,s nus. give II enect ~
which the clssms Of material men, rendered eIs,
tlal under the State Law, aud presented az thet
arc cAnuot supcfsede or override.
lii this cuse these material men have not rnst
their liens available under the STATE law. They hi,
only declared that II the bark had remained In 1
ills c0ur1, they Guild have attached 1t under Il
State Law, and made taeir Claims enectusl again
the bnIk- They como herc, now, aud ask III
The proceeds shall he treaei the dark Itself.
Tie question H. whether in 80 treating IL We
to postpone other valid subsstins lcns upon /
vessel such as these morSages would 0e, a
such as they were. think nut II seetna TO
J.. that We must take M, In their proper order, the
Claims or liens upon the vessel Admit that the
material mtn have valid claim upon THE procee'
iuasmuch ns theirs Is prior IN point Of timc Il
not 20 strong, and ulnss yield to tue cs!m o. !
mnr7cagees7 upon the prluc!p4e that thas ~oic'
first IN time Is stronger III rlr<nt-
In th!s case / shall direct distribution 10
made Ii conformity with that rflhcsple, Tue III
Rasees to sc INT paid.
Messs FarStT ~ rTse9sn T,eq 11 te See and
Aeshrs- Lac and Mitchell for the material men-
In hank rcy.
aE}HdttC't' f>-rr n.Aa F. TAuIQnsnn, OF Fol
ter Ugle County Involuntary proceedlnK1.