The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-05-13
STEAMSHIP COMPANY
Wins DAMAGE SUIT
New and Intricate Questions
Presented to Supreme
Court.
GOLD UNDELlVERED
Bullion-Bearing Ship Raced
GOLD UNDELlVERED
Bullion-Bearing Ship Raced
Back When Notified Of
War-Banks Suing.

Washington. May 12.-Claims Of the
Guaranty Trust company and National
City Bank of New York against the
North German Lloyd liner Kron.
prinzessin Cccilie for se,24O,0o0 dam
ages for failing to carry gold bullion
to Europe when the war began, pre-
sented to the supreme court several
new and intricate questions growing
out Of the hostilities. Damages were
denied.
Because the Cecilie. known as the
gold Ship" sailed with $11.000.O0O 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 non
delivery Of the gold
That immincnce-1of war justified the
Cccilic's return to neutral waters to
sava~the vessel from British capture
was commended by the defense.
% SniPs involved.
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
parent.
The Cecilie, pending the decision in
the present case. has been in custody
of the Boston federal court. When dip
severed. her German crew was taken
off and later interned in Georgia de.
tention camps. 1t was discovered that
before they left the vessel her ma
chinery was damaged to the extent OF
$4,000 under instructions from "a
member of the German government Of
fetal staff"
Lower Court Divided.
In the lower courts. opinion regard.
York banks was divided. Federal Dis
trict Judge Hale of Maine dismissed
their suit holding that Captain Polacl
had information by wireless warrant
ing reasonable apprehension of dangel
and justifying his return to America
Upon appeal. the federal circuit court
by a divided bench, reversed Judge
Halc's ruling and sustained the banks
claims. Judges Dodge and Bingham
held the vessel liable while Judge Put
nam dissented.
The Cecilie was ordered, by wireless
by the North German Lloyd director.
in Germany to return to America
Judges Dodge and Bingham held that
therefore. Captain Polack exercised NJ
discretion and that the shippers O.
freight We're entitled to damages FOL
failure to have their cargoes delivered
at London. The bills of lading stipu
lated against liability occasioned "b,
arrest and restraint of princes ruler!
or people"
The Guaranty Trust compan,
claimed $1,793,00O damages and tn,
National City bank $4,000. Their golt
was consigned to Plymouth and Cher
bourg respectively.
Returned Here Safely.
The Cecilie sailed from New Yorl
July %. 1914, and when 1910 mile
from Plymouth, on July 81, received
the wireless warning. She rushed ba cl
to America. arriving safely at Ra
Harbor and later was conveyed t,
Boston. The vessel was built in 100
at a cost of s4.5oO.0OO and was anon.
the German and Austrian craft subiec
to federal seizure when the Unite,
States declared war. Federal posses
sion. however, has been suspende,
subject to the claims of the New Yorl
banks.
A decision against the vessel in
volved either her sale at auction t,
satisfy the claimants or giving Of
bond. either by the owners or tn,
United States government.