CHAPTER XV OF VESSEL OWNERSHIP INDEPENDENT OF THE LIMITED 157. LIABILITY ACT Method by Which Title to Vessels may be Acquired or Transferred. 158. Relation of Vessel Owners Inter Sese. 159. Relation of Vessel Owners as Respects Third Parties. METHOD BY WHICH TITLE TO VESSELS MAY BE ACQUIRED OR TRANSFERRED 157. Title to vessels may be acquired by construction or by purchase. A bill of sale is necessary before the vessel can be documented or enjoy the privileges of an American vessel, but not for the transfer of title. A prospective vessel owner may build his own vessel, whether individually or by contract, or he may purchase it from some one else. The question when title passes in case of a ship under construction is one of intent under the contract of construction. The fact that the contract price is payable in installments is not necessarily an indication of an intent that title shall pass pro tanto.1 A vessel is a mere piece of personal property, and sale, accompanied by delivery, will pass the title. Such a sale may be proved by parol, as in any other case of personalty." § 157. 1 U. S. v. Ansonia Brass & Copper Co., 218 U. S. 452, 31 Sup. Ct. 49, 54 L. Ed. 1107; Poconoket (D. C.) 67 Fed. 262; Id., 70 Fed. 640, 17 C. C. A. 309; Id., 168 U. S. 707, 18 Sup. Ct. 939, 42 L. Ed. 1214. In England the presumption is the other way. Seath v. Moore, 11 A. C. 350, 380. 2 Badger v. President, etc., of Bank of Cumberland, 26 Me. 428; Chadbourne v. Duncan, 36 Me. 89. Section 4170 of the Revised Statutes of the United States provides: "Whenever any vessel, which has been registered, is, in whole or in part, sold or transferred to a citizen of the United States, or is altered in form or burden, by being lengthened or built upon, or from one denomination to another, by the mode or method of rigging or fitting, the vessel shall be registered anew, by her former name, according to the directions hereinbefore contained, otherwise she shall cease to be deemed a vessel of the United States. The former certificate of registry of such vessel shall be delivered up to the collector to whom application for such new registry is made, at the time that the same is made, to be by him transmitted to the register of the treasury, who shall cause the same to be canceled. In every such case of sale or transfer, there shall be some instrument of writing, in the nature of a bill of sale, which shall recite, at length, the certificate; otherwise the vessel shall be incapable of being so registered anew." The only effect of not having the required bill of sale, or of having a bill of sale without the certificate set out in it, is to cause the vessel to forfeit its rights to American papers.* In order to make this title binding as against third parties, it must be recorded in the custom house. Section 4192 of the United States Revised Statutes provides: "No bill of sale, mortgage, hypothecation, or conveyance of any vessel, or part of any vessel, of the United States, shall be valid against any person other than the grantor or mortgagor, his heirs and devisees, and persons having actual notice thereof, unless such bill of sale, mortgage, hy 8 U. S. Comp. St. § 7751. 4 Amelie, 6 Wall. 18, 18 L. Ed. 806; De Wolf v. Harris, 4 Mason, 515, Fed. Cas. No. 4,221; Orlando v. Wooten (D. C.) 214 Fed. 271. A bill of sale need not be under seal. Hunter v. Parker, 7 M. & W. 322. 331. pothecation, or conveyance is recorded in the office of the collector of the customs where such vessel is registered or enrolled. The lien by bottomry on any vessel, created during her voyage, by a loan of money or materials necessary to repair or enable her to prosecute her voyage, shall not, however, lose its priority, or be in any way affected by the provisions of this section." 5 If it is recorded according to this section, it is binding as to third parties, though not indexed." This statute has been held constitutional by the United States Supreme Court." The place where the vessel is registered or enrolled is regulated by section 4141 of the Revised Statutes, which says: "Every vessel, except as is hereinafter provided, shall be registered by the collector of that collection district which includes the port to which such vessel shall belong at the time of her registry; which port shall be deemed to be that at or nearest to which the owner, if there be but one, or, if more than one, the husband or acting and managing owner of such vessel, usually resides." These statutes, above quoted, which in terms apply to registered vessels, are made to apply to enrolled vessels by section 4312 of the Revised Statutes, which says: "In order for the enrollment of any vessel, she shall possess the same qualifications, and the same requirements in all respects shall be complied with, as are required before registering a vessel; and the same powers and duties are conferred and imposed upon all officers respectively, and the same proceedings shall be had, in enrollment of vessels, as are prescribed for similar cases in registering; and vessels enrolled, with the masters or owners thereof, shall be 5 U. S. Comp. St. § 7778. • W. B. Cole (C. C.) 49 Fed. 587; Id., 59 Fed. 182, 8 C. C. A. 78. 7 WHITE'S BANK v. SMITH, 7 Wall. 646, 19 L. Ed. 211. 8 U. S. Comp. St. § 7719. subject to the same requirements as are prescribed for registered vessels." " These bills of sale are required not only to be recorded, but they must set out exactly the interest of each person selling and each person purchasing.10 A vessel engaged in foreign trade is said to be registered, one engaged in the coasting or internal trade on navigable waters of the United States is said to be enrolled, and one of the latter class under twenty tons is said to be licensed.11 RELATION OF VESSEL OWNERS INTER SESE 158. Part owners of a vessel, in the absence of special agreement, are tenants in common, not partners. The presumption is in favor of a tenancy in common and against a partnership, though the latter may exist by special agreement. This has been settled law, both in England and America, for a long time.12 The fact that a vessel is run on shares does not constitute the part owners a partnership." Part owners have no lien as against each other in case one pays more than his share of the expenses or debts, U. S. Comp. St. § 8058. 10 Rev. St. §§ 4192-4196 (U. S. Comp. St. §§ 7778–7782). 11 Mohawk, 3 Wall. 566, 18 L. Ed. 67; Montello, 11 Wall. 411, 20 L. Ed. 191. The vessels entitled to American papers are set out in section 4132 of the Revised Statutes (as last amended, in U. S. Comp. St. § 7709). The form of register is given in section 4155 of the Revised Statutes (U. S. Comp. St. § 7736); the form of enrolment in section 4319 of the Revised Statutes (U. S. Comp. St. § 8065); and the form of license in section 4321 of the Revised Statutes (U. S. Comp. St. § 8069). § 158. 12 Bradshaw v. Sylph, Fed. Cas. No. 1,791; Revens v. Lewis, 2 Paine, 202, Fed. Cas. No. 11,711; SPEDDEN v. KOENIG, 78 Fed. 504, 24 C. C. A. 189; Briggs & Cobb v. Barnett, 108 Va. 404, 61 S. E. 797. 13 Daniel Kaine (D. C.) 35 Fed. 785. though the one so paying may be the ship's husband. This question was long a subject of debate in the courts, but the above may be considered as the settled doctrine now.14 In such case, however, when he has made necessary advances for the common benefit, under express or implied authority to do so, he may compel contribution from the owners for such advances; but this is a mere matter of accounts, and there is no jurisdiction in admiralty to maintain such a suit.15 The complete separation of vessel and owner in admiralty is forcibly illustrated by the decisions that a part owner, who happens to be engaged in the business of furnishing repairs or supplies to vessels, may libel his vessel for such repairs and supplies so furnished, and may assert a lien against his other part owners or their assignee, but not to the detriment of creditors of the vessel itself. This doctrine must be carefully distinguished from the doctrine announced in the last paragraph. For a mere balance of accounts there is no right of action in admiralty, but, if a part owner of a vessel happens to keep a machine shop, and does work upon the vessel on the credit of the vessel, there is no reason why he should not be allowed to libel the vessel, and to assert such a maritime cause of action against his other part owners. But, when the vessel comes to be sold, if there are other creditors, it would be inequitable to allow the part owner, who himself may be personally bound, to assert a lien against his own creditors; and therefore the doctrine is limited to an assertion of it in subordination to the claims of the other creditors on the boat.16 14 LARCH, 2 Curt. 427, Fed. Cas. No. 8,085; Daniel Kaine (D. C.) 35 Fed. 785. 15 LARCH, 2 Curt. 427, Fed. Cas. No. 8,085; Orleans, 11 Pet. 175, 9 L. Ed. 677. 16 PETTIT v. CHARLES HEMJE, 5 Hughes, 359, Fed. Cas. No. 11,047a; West Friesland, Swa. 454; Learned v. Brown, 94 Fed. 876, HUGHES,ADM. (2D ED.)-22 |