New Britain herald., 1917-05-07
BANKS LOSE ACTION
 AGAINST GOLD SHIP
Supreme Court Rules Ceciie Was
 Justified in Turning Back \.
$2,Ao,0oO AT STAKE

Because of Failure to Deliver sill.
 100000 in Bullion When Warned
 Outbreak of War Was Near.
 Washington. May 7.-New York banks today lost their litigation in the supreme court against the North Ger man Lloyd liner Kronprincessin Cecilie at Boston in which they claimed $2,240.000 damages for failure of the vessel to deliver gold bullion worth 100000 shipped to England and France just at the outbreak of the war.
 The Kronprincessin Cecelie, the court decided, Is not liable in damages to the shippers for turning back to America in mid-ocean and abandoning her voyage. The decision determines large similar claims against . score of other German vessels in American ports. Justice Holmes delivered the decision, Justices Pitney and Clark diesented.
 Raced Back to Bar Harbor.
 Because the Cecelie. known as the ''gold ship,'' sailed with $11, 900 in gold for England. when war ap- peared imminent. was warned in mid Atlantic by wireless and raced back to Bar Harbor. Me-, the banks claimed damages for losses resulting from non-dehvery of the gold.
 The imminence of war justified the Cecilie'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 Ceoilie. pending the decision in the present case. has been in custody of the Boston federal court. When diplomatic relations with Germany were severed, herr German crew was taken off and later interned in Georgia detention camps. It was discovered that before they left the vessel her was damaged to the extent o1 $100, 900 under instructions from 4.a member of tho, German governpent ofncial stan. !" .~s .s4. ~.
 Courts Divided on Opinion.
 In the lower courts, opinion regard Ing the Cecilie's liability to the New York banks was divided. Federal District Judge Hale of Maine dis missed their suit, holding that Cap tain Polack had linformation by wire Less warranting reasonable apprehen- sion of danger and justifying his re- turn to America. Upon appeal. the federal circuit court, by 8 divided bench. reversed Judge Hale's ruling and sustained the banks, claims. Judges Dodge and Bingham held the vessel liable while Judge Putnam dis- sented.
 The Cecilie was ordered, by wireless, by the North German Lloyd directors 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 damages for failure to have their cargoes delivered at London. The bills of lading stipn- lated against liability occasioned by arrest and restraint of princes ruleps or people,"
 The Guaranty Trust Company claimed $1,7s3,000,000 damages and the National City Bank $44e,O00. Their gold was consigned to Plymouth and Cherbourg respectively.
 The Cecilie sailed from New York July 2S. 1914. and when 1,o70 miles from Plymouth, on July ,31, received the wireless warning. She rushed back to America, arriving safely at Bar Harbor and later was conveyed to Boston. The vessel was built in 1907 at cost of $4.500,O00 and was among the German and Austrian craft suh- jcct to federal seizure when the Unit- ed Statess declared war. Federal pos- session, however, has been suspended subject to the claims of the New York banks. M
 A decision against the vessel in- volved either her sale at auction to satisfy the claimants or giving of a bond. either by the owners or the United States government.
 MISS LEE LEFT S1SS.O79