Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-05-07
United States Supreme
Court Makes Important
Ruling as to Cargoes.
NO MULCT FOR
DELIVERY FAILURE
Ruling Made in Case Of kronprinxsssjn
csceIis Has Bearing on Number
Of Other Cases Pending Against In
termed Merchant Vessels - Banks
Brought Suit For Large Sum For
Failure to Deliver Gold.

Washington. May New York
banks today lost their litigation in the
supreme court against the North Ger
man Lloyd liner Kronprinzessin Cecilie
at Boston. in which they claimed So
FAC, 1000, damages for failure of the YES
sci to deliver gold bullion worth SILL
100000, shipped to England and France
just at the outbreak of the war.
The Cecilie, the supreme court de-
cided, is not liable in damages to the
shippers for turning back to America
in mid d-ocean and abandoning her voy-
age. The decision settles large num-
Der of claims against other German
vessels in American ports. Justice
Holmes delivered the decision. Justices
Pi,ney and Clark dissented.
Raises New Questions.
Claims Of tho Guaranty Trust Com
pany and National City Bank Of New
York presented to the supreme court
several new and intricate questions
growing out Of the hostilities.
Because the Cecilie. known ~ the
gold Ship sailed with $11,0O0,000 In
gold for England, when war appeared
imminent, was warned in mid Atlantic
by wireless and raced back to Bar
Harbor, Me-, the banks claimed dam
ages for losses resulting from mono de-
livery of the gold,
That imminence Of war justified the
Ceciiie,s return to neutral waters, TO
save the vessel from British capture,
.was4conts tended ny ho defense.
Many claims Of great magnitude
against other German vessels, similar
~ situated hinged upon the supreme
courts decision. Twenty three ships
Of the North German Lloyd, Hamburg
American and Hansa lines either re-
turned to American ports or refused to
sail with cargoes when war was ap-
parent.
The Cecilie, pending the decision in
the present case. has been in custody
Of the Boston federal court. When
relations with Germany
We're severed. her German crew was
taken Off and later interned in Georgia
detention camps. It was discovered
that before they left the weasel her
was damaged to the extent
Of $4,000 under instructions from "a
Of the German government Of
fetal STAFF"
Lower Courts Divided.
In the lower courts, opinion regard
Ing the Cecihe's liability to the New
York banks was divided. Federal Dis
trict Judge Hale, of Maine, dismissed
their suit, holding that Captain Polack
had information by wireless warrant
ing reasonable apprehension Of dan
ger and justifying his return to Amer
Ca Upon appeal, the federal circuit
court, by divided bench. reversed
Judge Hale's ruling and sustained the
banks claims. Judges Dodge and
Bingham held the vessel liable while
Judge Putnam disscnted.
The Cecilie was ordered, by wireless,
by the North German Lloyd directors
in Germany to return to America
Judges Dodge and Bingham held that,
Captain Polack exercised no
and that the shippers Of
freight were entitled to damages for
failure to have their cargoes delivered
1t London. The bills Of lading st;pu-
ated against liability occasioned by
arrest and restraint Of princes, rulers
or people.
The Guaranty Trust Company
claimed $1,793.000 damages and the
National City Bank $44s,00o Their
gold was consigned to Plymouth snd
Cherbourg respectively.
The Cecilie sailed from New York
July %, 1914. and when 1910 miles
from Plymouth. ION July 81. received
The wireless warning. She rushed back
10 America, arriving safely at Bar Har-
Dor and later was conveyed to Boston.
The vessel was built in 1907 at q cost
of $4,500,000 and was among the Ger
man and Austrian craft subjsc. to fed-
erai seizure when the United StateS
declared, war. Federal possession.
has been suspended subject
% the claims Of the New York banks.
A decision against the vessel In
volved either her sale ct auction to
satisfy the claimants or giving Of .
bond, either by the owners or the
United States government.
Can't Seize Ships In Island.
It was revealed In the house today