The Washington herald., 1914-05-26
DECISION LIMITS
TITANIC LIABILITY
Supreme Court Upholds Fight
Of Owners to Pay Amount
Under U. S. Law Only.
TOTAL IS ABOUT $4,000
L c. c. overruled in Top Line
Case-Court to Take Reeess
for Two Weeks.

4
right Of the Oceanic Steam Navigation
Company. owners Of the Inflated Titanic,
which was lost at sea little over a
year ago. to limit its liability on account
of that disaster to an amount equal to
the value of its salvage and the amount
received for carrying passengers and
freight. This would make its total liza
bility only about $1,000. Justice McKenna
dissented. The opinion affects only such
| suits as were brought in the United
States against the Ocean Steam Naviga-
tion Company, which is British corpora
tion.
The case turned on a certificate from
the United States Circuit Court of Ap-
peals for the Second circuit. certifying
| three questions to the Supreme Court on
which an answer was requested. as fol-
lows:
"A. Whether in case the disaster upon
the high seas. where ID only a single
vessel Of British nationality Is concerned
and their claimants of many different
nationalities: and where CO there is moth
ing before the court to show what. II
any. is the law of the foreign country to
(which the vessel belongs, touching the
owners liability for such disaster. such
owner can maintain a proceeding under
sections 42s3 to 4zss. inclusive. Revised
Statutes. and the fifty-fourth and fifty
sixth rule in admiralty. (The Supreme
Court answered that question In the af-
firmative).
''B. Whether. II In such case II ap-
pears that the law of the foreign country
to which the vessel belongs makes pro-
vision for the Limitation Of the vessel
owners liability. upon terms and condi-
tions different from those prescribed In
the statutes Of this country. the owners
Of such foreign vessels can maintain a
proceeding in the courts Of the United
States under said statutes and rules
(The Supreme Court answered this
question in the afiirmative)
&C. VIII the courts of the United
States, in such proceedings, enforce the
law of the United States. or of the for
eign country in respect to the amount
of such owners liability" CTo this ques-
ton the Supreme Court replied: THE law
Of the United States.'O
May Seek Limit of Liability.
Justice Holmes held that foreign ship |
may resort to the courts of the United |
States for q limit of its liability under |
our statute, and he so held on the basis |
of the courts decision In the Scotland |
and the Bourgoyne cases.
THE act of Congress does not control |
or profess to control the conduct OF a |
British ship on the high seas" said
Justice Holmes. 1T is true that the |
foundation for a recovery upon a British \
tort is an obligation created by British |
law. But II Is also true that laws of
the forum may decline altogether to en-
force that obligation on the ground that |
II is contrary to the domestic policy. or |
may decline to enforce II except within |
such limits as 1t may impose. II was
competent. therefore. for Congress to
enact that In certain matters belonging |
to admiralty jurisdiction. parties resort
ing to our courts shall recover only to |
such extent or in such way as 1t may |
mark out.
"A law that limits a right in one case
may limit a remedy in another" con-
tinued Justice Holmes. We see no ab-
surdity in supposing that II the owner
of the Titanic were sued in different
countries, each having a different rule
affecting the remedy there. the local rule
should be applied in each case. 1t can
be imagined that in consequence of such
diverse proceedings the owner might not /
be able to comply with the local require
ments for limitation. as 1t Is also con-
ceivable that IL il sought the advantage
OF an alien law it might as a condition
have to pay more than its liability under
the law of its flag in some case
Without filing any dissenting opinion,
Justice McKenna announced the view.
based on the Scotland case, decided by
the Supreme Court, that the law OF Great
Britain should be enforced in fixing the
amount of the owners liability.
The effect of the decision today will
be felt only on such suits as have been
brought in the United States. 1t has
been stated that more than $s1, 100000 in
claims have been fled against the Oceanic
Steam Navigation Company on account or
the loss OF the Titanic.
Court Overrules I. C. C..
The court overruled the Interstate
Commerce Commission yesterday and
sustained the Commerce Court in the .
tap line cases" The Interstate Com
nerce Commission had held that the
hort tap line railroads owned and
'perated by lumber companies and other
concerns which connect plants
4 these Industrial concerns with trunk
Inc railroads, were not common car
iers. particularly as to what In known
8 proprietary trafhc" On this ruling.
he Interstate Commerce Commission had
efused to permit the trunk lines to
rake allowances to these tap lines for
reisht charges in proportion to the
ength Of the haul, based on q joint rate
or a through route. Ia
Inc commerce court nuiilned the Or !
er of the Interstate Commerce Com q
mission. holding that the tap lines were 1
ommon carriers, even as to proprietary I
reight." The Supreme Court affirmed '
he Commerce Court ruling. The opinion
'as read by Justice Day. In
Members Of the Interstate Commerce g
commission and their legal advisers held !.
conference yesterday afternoon to con- !.
lder the effect of the decision on pend
,g cases involving industrial railroads I
l many parts of the country. The In
srstate Commerce Commission has been
lsposed to treat these short lines as ! a
plant facilities" of the Industrial con- :
erns owning and operating them, and to
egard any allowance made to their
wners for carrying charges en- the trans.
crtation Of the products of the indus
-ial plant owning them as in the nature
rebates. 4
Court to Take Recess. q
Chief Justice White announced yester- a
ay that the court wouldSrecess again 81
or two weeks, or until June s. and thatH a
fter that date no motions would be ~
card. except for admission to the barr
n June the court will recess for one !,
eek, or until June Is, when the sum- :
Ter vacation will be taken. unless the
late Of the business of the court should
lake 1t necessary to prolong the term 4
,r another week. Senator Elihu Root
loved the admission Of George Jones,
New York City. to practice before +.
ne court.
The court. speaking through Justice
lckenna, held the New York State Law
hitting the hours OF service for en- =
loyes operating railway trains to eight