Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-05-07
N. Y. BANKERS
LOSE CEClLIE
ship ACTION
Supreme Court Says Ger
man Ship Had Right to
Give up Voyage.

Washington, May New York
banks today1iost their litigation in the
supreme court against the North Ger
man Lloyd liner Kronprinzessin Ce-
cilie,f atsBoston. in which they claim
ed S~2,240,000 damages for failure OF
the vessel to deliver gold bullion
worth $11,000,000, shipped to Eng
land and France just at the outbreak
Of the war.
The Cecile, the supreme court de-
clded, is not liable to damages to the
shippers for turning back TO America
IN mtd-ocean and abandoning her voy-
age. The decision determines large
similar claims against a score of 9TH
:er German vessels in American ports.
Justice Holmes delivered the decision.
Justices Pitney and Clark dissentcd.
Claims of the Guaranty Trust CON
pany and National City bank Of New
York against the North German Lloyd
liner kronprinzessin cecile. for s2.-
100000 damages for failing to carry
gold bullion to Europe when the war
began. presented to the supreme court
several new and intricate questions
growing out of the hostilities.
Because the Cecile. known as the
gold ship" sailed with $1,000, 600
in gold for England, when war ap-
pcdicu lLuIIllIlcuIp was warned IN MID
Atlantic by wireless and raced to Bar
Harbor, Me-, the banks claimed DAM
ages for losses resulting from nom
delivery Of the gold.
That imminence Of war justified the
Cecile's return to neutral waters, to
save the vessel from British capture,
was contended by the defense.
Many claims of great magnitude
against other German vessels similarly
situated hinged upon the supreme
courts decision. Twenty-three ships
of the North German Lloyd, Ham
burg-American and Hansa lines either
returned to American ports or refused
to sail with cargoes when war was
apparent.
The Cecile. pending the decision in
the present case. has been in custody
Of the Boston federal court. When
diplomatic relations with Germany
were severed, her German crew was
taken off and later informed in
Georgia detention camps. 1t was dis
covered that before they left the YES
sci her machinery was damaged to
the extent Of $4,000 under instruc-
tons from "a member of the German
government official staff"
In the lower courts, opinion re-
garding the Cecile's liability to the
New York banks was divided. FEEDER
al District Judge Hale Of Maine dis
missed their suit, holding hat Cap
tain Polack had information by wire
less warranting reasonable a]pprehen-
sion Of danger and tustfying his re-
federal circuit court. by a divided
bench, reversed Judge Hale's ruling
and sustained the banks claims
Judges Dodge and Bingham held the
vessel liable while Judge Putnam dig
scented.
The cecile was ordered. by wireless
in Germany to return to America
Judges Dodge and Bingham held that
therefore, Captain Polack exercised
no discretion and that the shippers
Of freight were entitled to damage,
for failufe to nave their cargoes de.
livered at London. The bills Of lad.
ing stipulated against liability coca
stoned "by arrest and restraint O
princes, rulers or people,"
the Guaranty Trust company claim
ed $1,793,000,Q 900 damages and tn,
National City bank $4,000. Theil
gold was consigned to Plymouth ant
Cherbourg respectively.
The Cecilie sailed from New Yorl
July 2s. 1914. and when 1910 mile.
from plymouth. on July 81. received
the wireless warning. She rushed
back TO America, arriving safely 4
HRara Harbor and later was conveyed
Ito Boston. The vessel was built Il
1907 ct 9 cost of $4,000. 900 and wa
among the German and Austrian Graf
sub5ect to federal seixure when tn,
unitsa stats. declared war Fedora
pended subject to- tht. claims Of tn,
New York banks.
A decision against. the vessel in
volyed either her sale at auction {,
satt.fy tho claimants . swing Of