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cover the $9,000 which the bank paid to
Evans, but might recover the additional
amount he paid out in order to perfect his
title. In accordance with this charge the ju-
ry returned a verdict for $1,350. The bank
assigns error on the refusal of the court to
direct a verdict to the effect that it was not
liable in any amount. On cross-assignments
of error, Biddle insists that the court erred
in refusing to accept the verdict for the full Circuit Court of Appeals, Ninth Circuit.
amount claimed by him.

cross-writ. On the original writ of error
judgment is reversed, and the cause reman
for further proceedings not inconsistent
this opinion.

COPPER RIVER PACKING CO. v. ALAS
S. S. CO..

cient vessels to handle shipper's seasonal quirements with reasonable promptness H not discriminatory, nor to give unreasona preference (46 USCA § 812).

Contract in which steamship

[1] In our opinion the District Judge was clearly right in refusing to allow the bank to 1. Shipping 103-Contract to furnish s be held liable for the $9,000 paid to Evans upon delivery of the deeds. According to the undisputed evidence, the owners of the land were not named, Evans held an option to purchase, and plaintiff knew that a clear title could not be delivered without his consent. So far as the bank is concerned, however it may be as between Biddle and Evans, the method of payment of the purchase price was not in violation of instructions. If the bank had paid it to the owners, and they in turn had settled with Evans, the result would have been the same, as the amount Evans received was paid to him with their consent.

agreed to transport property of salmon pa
ing company and to furnish sufficient vessels
handle shipments with reasonable promptne
subject to its regular rules, rates, and tariff,
quiring relatively large seasonal shipments
fall and spring, held not unfair or discriminat
against any shipper nor did it give any and
or unreasonable preference or advantage
such shipper, in violation of Act Sept. 7, 19
(USCA § 812 [Comp. St. § 8146gg]).
$14, as amended by Act June 5, 1920, §
2. Shipping 103-That steamship compa
might violate law by giving undue preferen
to shipper held not to invalidate contract
furnish reasonably prompt transportation
USCA § 812).

The mere fact that steamship compa

might violate the law by giving undue pref

ences, within Act Sept. 7, 1916, § 14, as amer
ed by Act June 5, 1920, § 20 (46 USCA § 8
[Comp. St. § 8146gg]), such as loading parti
pediting its freight to the disadvantage of pr
lar shipper's shipment on a fixed day, and
shippers offering freight of a similar charac
and to the same point, does not invalidate co
tract to furnish such service as might be
quired to take care reasonably of shipper's
cessities.

steamship company will not violate law 3. Shipping 132(3)-Presumption is th carrying out contract of affreightment.

Presumption is that steamship company, carrying out contract of affreightment, will co form to the requirements of the law. 4. Shipping 132 (6)-Whether steamsh company furnished vessel with reasonab promptness, as specially contracted, held fa question for jury.

In salmon packing company's action f damages for breach of special contract of freightment, question whether defendant fu nished vessel with reasonable promptness, required by contract, held one of fact for ju 5. Shipping 132 (3)-Burden of excusing fusal to transport shipment for salmon pac ing company, in violation of special contra held on steamship company.

Where steamship company contracted furnish sufficient vessels to handle salmon pac Defendant in error takes nothing by his ing company's shipments with reasonab

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COPPER RIVER PACKING CO. v. ALASKA S. S. CO.
22 F.(2d) 12

promptness, and packing company proved ca-
pacity of steamship company's vessel sailing on
a certain date and demand for space for ship-
ment, with tender of freight and refusal thereof
several days before it was loaded, it made out
a case of breach of special contract of affreight-
ment, and burden of showing any valid excuse
for violation thereof was on steamship com-
pany.

6. Shipping 132(5)—Exclusion of evidence
that steamship company's agent had notice of
shipper's requirement before contract was
executed, and was notified of necessity of fur-
nishing shipping vessels, held error.

In action for breach of special contract
requiring steamship company to furnish suffi-
cient vessels to handle salmon packing com-
pany's shipments and for special damages, ex-
clusion of evidence that, before contract was
executed, plaintiff's agent told defendant's agent
that it would require a quantity of empty cans
on a certain date, that after the contract was
executed defendant's agent stated that he knew
plaintiff's requirements, that defendant could
be relied on to transport the required cans on
one of its ships, that on certain date plaintiff
notified defendant that it needed the cans, and
that unless the cans were delivered heavy loss
would result, held error.

In Error to the District Court of the
United States for the Northern Division of
the Western District of California; Jeremiah
Neterer, Judge.

Action by the Copper River Packing
Company against the Alaska Steamship
Company. Judgment for defendant, and
plaintiff brings error. Reversed and re-
manded.

Kerr, McCord & Ivey, of Seattle, Wash., for plaintiff in error.

13

All

company agreed to furnish sufficient vessels to handle the north-bound shipments in the spring and the south-bound shipments in the fall "with reasonable promptness and dispatch, and at other times during the season to furnish such additional vessels, either direct or by detours from a regular route, as may be reasonably required by the necessities of the second party's business." The packing company was to ship exclusively by the steamers of the defendant company. property to be transported was to be received, held, carried, and delivered by the steamship company subject to the conditions of its regular and then current shipping receipt, and, except as otherwise specifically provided, to the rules, rates, and conditions of the then current freight tariff. Provisions covered specific rates upon fish in cans and upon empty cans. In consideration of the obligations on the part of the steamship company to furnish such service as might be required, "to reasonably take care of second party's necessities," it was agreed that, in case any freight covered by the agreement should be transported to or from the wharf by any other vessel than one belonging to the steamship company, such violation of the agreement would give the shipping company an option to terminate the agreement upon notice to the packing company.

The amended complaint averred that the Alameda was one of the boats operated by defendant; that plaintiff tendered to defendant for transportation on the Alameda 2,500 cases of cans on her voyage leaving Seattle about August 9, 1922, for delivery to Nellie Juan, and that five days before the Alameda sailed defendant refused to carry the cans, in

Lawrence Bogle, Cassius E. Gates, and
Edwin G. Dobrin, all of Seattle, Wash., for
defendant in error.
Before HUNT, RUDKIN, and DIET. violation of the terms of the contract; that
RICH, Circuit Judges.

HUNT, Círcuit Judge. Plaintiff, a salmon packing company, has a cannery at Nellie Juan, Alaska, with a capacity of from 1,200 to 2,000 cases of salmon per day. The season begins about July 4th and ends about the 18th of August of each year. The steamship company and plaintiff entered into a contract in March, 1922, by the terms of which the steamship company would deliver or receive at ship's tackle all the property owned or controlled by the packing company covered by the agreement, which would require transportation to or from the wharf, it being understood that the bulk of the packing company's north-bound shipments moved in relatively large shipments in the spring and south-bound shipments in relatively large shipments in the fall. The steamship

the Alameda could have delivered the cans if they had been shipped to plaintiff not later than August 15th; that the cans measured 60 tons and about 13 tons dead weight; that plaintiff was obliged to pack its red salmon in a way which caused it to lose large profits, to its damage in the sum of $7,375.

Defendant pleaded its general obligations as a common carrier, lack of space, and lack of reasonable notice.

In presenting its evidence plaintiff offered the contract, but upon objection the court ruled that it was not admissible unless the shipping receipt was included; also because, under the allegations of the complaint, it was not averred that there was available space on the Alameda. Thereupon, in view of what the court said, the plaintiff amended its complaint by alleging that there was available space for carrying the cans, and

14

22 FEDERAL REPORTER, 2d SERIES

the contract and receipt and tariff were put the order to ship was received and refused on in evidence.

The testimony was that plaintiff shipped all of its goods over defendant's line; that the Alameda had a capacity of about 1,400 tons; that about August 1, 1922, it was discovered that plaintiff would need 2,500 cases of half-pound flat cans in Alaska, and telegraphed on August 4th to the American Can Company at Seattle to "ship on the Alameda leaving Seattle August 8, 2,500 cases," etc; that the can company replied under date of August 5th, stating they could not get space on the Alameda, but could possibly make "Watson 15th or Northwester 19th. Every thing loaded. Advise at one if want cans then." The telegraphic reply, offered, but excluded, was to the effect that, if the can company could not ship the cans via the Alameda, not to ship at all. It was proved that Nellie Juan is about 12 miles off the regular route of the defendant's ships; that the 2,500 cases of cans would occupy a space 10x10x25 feet long; that if the cans had been shipped on the Alameda they would have arrived at Nellie Juan on the 14th of August. Thereupon plaintiff sought to prove that it had red salmon sufficient to fill the cans referred to in the telegram. Defendant objected, and the court held that plaintiff must first prove that there was no space available on the Alameda before it could go into the question of damages at all.

Plaintiff then offered to prove that in the latter part of March, 1922, its representative told the manager of the steamship company that it would require a quantity of cans the latter part of July or first of August on some vessel sailing about that time, and that the agent of the shipping company said he knew what the requirements were, and that defendant could be depended upon to supply the cans on one of its boats leaving about that date; that, if the cans had been delivered on the Alameda, plaintiff could have packed them, and that the market value, less the cost of packing, would have been $10,575, which would have been the measure of profit that plaintiff would have realized, had defendant not violated its contract of shipment; that in order to minimize the damage plaintiff packed the red salmon in tall cans, which reduced the damages to $7,375; that plaintiff notified the steamship company on August 2, 1922, that it needed cans, and that the loss would be almost irreparable if the defendant company failed to deliver them; that the steamship company never began loading the Alameda until the day before the vessel sailed on August 9th, and that when

August 5th the ship had not commenced to load; that the traffic manager of the steamship company stated in October, 1922, that the shipping company could have shipped the cans, and could and would have delayed shipment of certain mining machinery consigned to a copper company in Alaska in which the defendant company was financially interested.

All the offers were rejected; exceptions were saved. Motion for nonsuit was granted, and judgment was entered in favor of defendant.

[1, 2] In our opinion the contract—a special one of affreightment-makes no unfair or unjustly discriminatory arrangement against any shipper in respect to cargo space, due regard being had for the proper loading of the ship and the available tonnage; nor does it give any undue or unreasonable preference or advantage to defendant or its traffic. Act of Sept. 7, 1916, § 14 as amended by Act June 5, 1920, 41 Stat. 996, § 20 (46 USCA § 812 [U. S. Comp. St. Ann. Supp. 1923, p. 2341]). It was not a booking of the cans; the contract was not a specific agreement with defendant for the reservation of space for transportation of the cans on a particular ship in advance of its sailing date. Ocean S. S. Co. v. Savannah Locomotive Wks., 131 Ga. 831, 63 S. E. 577, 20 L. R. A. (N. S.) 867, 127 Am. St. Rep. 265, 15 Ann. Cas. 1044; Merchants' & Miners' Trans. Co. v. Granger & Lewis, 132 Ga. 167, 63 S. E. 700. The mere fact that the steamship company might violate the law by giving undue preferences, such as loading plaintiff's cans on a fixed day and expediting freight of a particular shipper, to the disadvantage of prior shippers who offered freight of a similar character for shipment to the same point, does not invalidate the agreement to furnish such service as might be required to take care, reasonably, of the necessities of the packing company. Reasonably to take care of such necessities is explained by the expressed mutual understanding of the parties that the bulk of the packing company's shipments of cans to Alaska would require movement in the spring and summer, which in turn would demand that the steamship company furnish in number and capacity sufficient vessels to handle such freight with reasonable promptness as might be required. [3] The presumption is that the defendant company, in carrying out the contract, would conform to the requirements of the law. In American Railway Express Co. v. Lindenburg, 260 U. S. 584, 43 S. Ct. 206, 67 L. Ed.

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COPPER RIVER PACKING CO. v. ALASKA S. S. CO.
22 F.(2d) 12

414, the Supreme Court, referring to an in-
terstate carrier, quoted from an earlier case,
Cincinnati, New Orleans & Texas Pacific
Railroad Co. v. Rankin, 241 U. S. 319, 36 S.
Ct. 555, 60 L. Ed. 1022, L. R. A. 1917A, 265,
saying: "It cannot be assumed, merely be
cause the contrary has not been established
by proof, that an interstate carrier is con-
ducting its affairs in violation of law. Such
a carrier must comply with strict require
ments of the federal statutes or become sub-
ject to heavy penalties, and, in respect of
transactions in the ordinary course of busi-
ness, it is entitled to the presumption of right
conduct." Northern Pacific R. Co. v. St.
Paul & Tacoma Lumber Co. (C. C. A.) 4
F. (2d) 359.

Davis v. Cornwell, 264 U. S. 560, 44 S.
Ct. 410, 68 L. Ed. 848, one of the cases cited
by defendant in error, is inapplicable. There
the transportation service to be performed
was that of a common carrier under pub-
lished tariffs, and not under a special con-
tract. The court held that the promise of.
the agent of the company that cars for load-
ing cattle would be available on a day named
imposed a greater obligation upon the car-
rier than that implied in the tariff, where the
obligation was to use diligence to provide
upon reasonable notice cars for loading at
the time desired. The court reaffirmed the
ruling in Chicago, etc., Co. v. Kirby, 225 U.
S. 155, 32 S. Ct. 648, 56 L. Ed. 1033, Ann.
Cas. 1914A, 501, that a special contract to
transport a car by a particular train on a
particular day is illegal, when not provided
for in the tariff.

[4] Obviously, that any particular vessel
should be employed to transport cans was of
no moment to plaintiff; what it wished was
to have the cans shipped in time to meet the
necessities of their packing business, which
was confined to a limited time. In calling
for shipment by the Alameda to leave Seat-
tle on August 8th, plaintiff simply em-
phasized its need for cans about the date that
ship would arrive at Nellie Juan. If defend-
ant had shipped the cans by any other ves-
sel, which could have delivered them about
August 14th, no cause for complaint could
have existed. As presented, the main issue
-the question of reasonable promptness-
became one of fact, dependent upon the
availability of space upon a ship of defend-

15

ant leaving Seattle about August 9th. The court, therefore, should have submitted the issues to the jury.

[5] We think the court erred in requiring plaintiff to prove that there was space available aboard the Alameda at the time of the tender of the freight. It would be practically impossible, ordinarily, for shippers to know whether a carrier had space for a limited quantity of merchandise offered, and in the present case, inasmuch as the contract fixed the obligation to carry with reasonable promptness, when plaintiff proved the capacity of the defendant's ship and that demand was made for space for the cans, and that tender of the freight was made and refused several days before the ship was loaded, its case was made out, and the burden of showing any valid legal excuse that may have existed for default in performance was cast upon defendant. Clark v. Barnwell, 12 How. 272, 13 L. Ed. 985; Columbus R. Co. v. Columbus, 249 U. S. 399, 39 S. Ct. 349, 63 L. Ed. 699, 6 A. L. R. 1648; Inter-Coast Steamship Co. v. Seaboard Transportation Co. (C. C. A.) 291 F. 13.

[6] The complaint having alleged special damages, including loss of profits, the court should have permitted plaintiff to prove that before the contract was executed plantiff's and defendant's agents had a conversation wherein plaintiff's agent told defendant's agent that it would require a quantity of cans about the 1st of August, and that after the contract was executed the defendant's agent stated that he knew what plaintiff's requirements were, and defendant could be relied upon to transport the required cans on one of its ships, and that on August 2d plaintiff notified defendant that it needed the cans, that the fish were ready to pack, and that unless the cans were delivered the loss would be very heavy. 10 C. J. 316; Morrow v. M. P. R. Co., 140 Mo. App. 200, 123 S. W. 1034. Those were matters which arose from the circumstances and character of the particular case, and of which defendant must have had knowledge at the time of the making of the contract. 8 R. C. L. 459, § 27; 1 C. J. § 199.

The judgment is reversed, and the cause is remanded, to be proceeded with in accordance with the views herein expressed.

16

22 FEDERAL REPORTER, 2d SERIES

SOUTH AMERICAN S. S. CO. et al. v. AT- pany and others. Decree for libelant (19 LANTIC TOWING CO.

Circuit Court of Appeals, Fifth Circuit.

October 24, 1927.

No. 5099.

1. Salvage 48-Evidence held to show that warning from tug to change course prevented stranding and probable total loss of steamship.

Evidence held to show that steamship which

had listed about 20 degrees because of shifting

of its cargo was in imminent danger of going aground in attempting to enter river channel and being a total loss, when warning to change her course was given by tug, and that such warning, being heeded, prevented stranding and probable total loss.

2. Salvage 7-Standing by in danger and rendering necessary assistance constitutes "salvage service."

Standing by in a situation of danger and rendering whatever assistance is needed constitutes "salvage service."

[Ed. Note. For other definitions, see Words and Phrases, First and Second Series, Salvage Service.]

3. Salvage 18-Pilot rendering salvage services beyond his ordinary duty is entitled to salvage.

Even a pilot who goes beyond his ordinary duty and renders services of a salvage character

is entitled to salvage.

4. Salvage ~7-Warning to change course preventing stranding held a "salvage service." Warning to change her course, given by a tug to a steamship which, heavily listed by shifting of cargo, was attempting to enter river, which warning saved the ship from stranding and probable total loss, held a "salvage service." 5. Salvage 26-In fixing salvage award, value of steamship, cargo, and fact that lives of crew were in peril should be considered.

In determining the amount of an award for salvage service to steamship, it is proper to take into consideration not only the value of the steamship and cargo, but also the fact that the lives of its officers and crew were in peril.

6. Salvage 27-$5,000 award to tug for salvage services preventing stranding and probable total loss of steamship valued at $65,824 and cargo valued at $83,000, held excessive and will be reduced to $3,000.

Where value of heavily listed steamship was $65,824, and her cargo $83,000, award of $5,000 to tug valued at $60,000 for salvage services by warning of danger, standing by, convoying, docking, preventing stranding, and probable total loss of steamship, held excessive, and will be reduced to $3,000; danger to which tug was exposed being small.

Appeal from the District Court of the United States for the Southern District of Georgia; William H. Barrett, Judge.

Suit by the Atlantic Towing Company against the South American Steamship Com

F.[2d] 394), and respondents appeal. Modified and affirmed.

George T. Cann, of Savannah, Ga., and James W. Ryan and Leonard J. Matteson, both of New York City (Anderson, Cann & Cann, of Savannah, Ga., and Bigham, Englar & Jones, of New York City, on the brief), for appellants.

T. M. Cunningham, Jr., of Savannah, Ga. (Lawton & Cunningham, of Savannah, Ga., on the brief), for appellee.

Before WALKER, BRYAN, and FOSTER, Circuit Judges.

BRYAN, Circuit Judge. This is an appeal from a decree for $5,000, awarded as salvage for services rendered by appellee's tug Henry W. Grady to appellants' steamship South American. Appellants contend that the services rendered did not rise to the dignity of salvage services, and that in any event the amount awarded by the decree is excessive.

[1] While the South American was on a voyage up the Atlantic Coast from Cuba to New Jersey, her cargo shifted and caused a list to port of about 20 degrees. A northeast wind was blowing, the sea was rough, and it was found to be impossible to correct the list. Thereupon the master sought the port of Savannah, giving notice by radio to the ship's owners in New York, who notified their agent in Savannah, and he in turn stated to appellee that the ship was expected to arrive at the entrance to that port at about 4 o'clock in the afternoon of September 26, 1923. The agent testified that appellee agreed to go out and meet the ship and render any assistance, but not to make any charge if the master did not accept his services. Appellee's evidence was to the effect that the agent gave information as to his ship's condition, and stated that it was on its way to Savannah, and that appellee agreed to send out a tug, but denied that there was any agreement about compensation. The South American arrived off the coast some four miles to the north of the regular entrance to the Savannah river, and at about 5 o'clock in the after. noon was sighted by appellee's tug Grady to the northeast near Gaskin's Bank, which was marked by a buoy. The tug intercepted thesteamship about dark between Gaskin's Bank and the shore. The master of the tug stated he had come to give assistance at the request of the ship's agent, and offered a hawser. The master of the South American declined to take the hawser, but did not dismiss the

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