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ri»> THE MARINE RECORD. ' MARINE LAW. TUB TUO UNION AND OTHERS. Dtilrlet Court, 2Voi then Dittrict Illinois, 1334. In Admiralty i W. M. Condon for libelant; Sohuylor& Kremor for the tug Union; W. L. Mitchell for the schooner R. B, King. Blodgett, J- Tho libelant In this case seeks, at owner of tho schooner Floretta; to recover damage* sustained byjald schooner In a colllilon between said schooner, while In tow of the tug Union, and the ichooner R. B. King. The collision occurred on the 10th of August, 1882, near the- entranqe to Chicago harbor. Among 'other defenses urged in the case Is an award made by arbi¬ trators, to whom the matters arising out of such collision was submitted by the parties Interested. It appears, from the prooli and pleadings, that libelant was, at the time of the collision, owner of the Floretta. The Vessel-owners' Towing Company was-on n- or of the tug Union, J. L. Higgle being president of the company and acting In its behalf, and J. C. Dunbnr was master of the o schooner R B. King, and acted in the mat¬ ter of the arbitration In behalf of her owner. The agreement foi submission to arbitration was as follows' "CittOAflO, August 24, 1882. "Know all to whorn these presents may concern, that we, the following parties, J. L. Higgle of the Vessel-owners' Towing Com¬ pany, representing the tug Union, and J. V. Taylor, representing the schooner Flo- rettn, and Captain J. C. Dunbar, owner of the schooner R. B. King, do hereby agree to leave to arbitrators the collision that hap¬ pened between the three said vessels on the rooming ot'the 19th of August, 1882, about one mile or thereabout trom' Chicago har¬ bor We have also agreed to the lolloping arbitrators: Captain William Keith and Captain William Cary, and, If they cannot agree, to be left to a third party to be ap¬ pointed by them. [Signed] "J. 1. Hiaam, "President ot theVessel-owners' Towing Co. "J. C. Dunbar, "J. V. Taylob " And under this agtcement the arbitrators named made an award, as tollows: "Chicago, September 5,1882. "J. L Hig<jie,J V. Taylor andJ.'C. Dun- i.ar — Gentlemen : We, Wlllhini Keith and W,llllam Cary, do herewith give you our de¬ cision In damage cato of schooner Floretta and R. B. King and tug Union. We hold . soixtooer fjoretta respoi elble lor her own damage through action ot her master. Cap¬ tain S. Murphy, forgiving foui different) orders, and thus tree tug Union from all re. sponslblllty. We hold schooner R. li. King responsible loi her own damage for not keeping proper lookout. . "William Keith, "William Caiiv." In the fifth article of the libel, the fact that the matter was submitted to arbitration and an award made In pursuance thereof is stated, but it Is also alleged that libelant hail no notice of the hearing bejforo the arbitra¬ tors, and nooppoitunity to present proofs'; and also that libelant waa induced to sign the agreement to arbitrate by nrtsrepresen- . taiiou made by Higgle, the president of the towing company; and therefore liEetantls not bound by the award, and is entitled to recover upon the original cause of action. The only question I deem It necessary to consider Is tbe effect of this submission and award as a defense In this case. I think there can be no doubt ~that the agree¬ ment for arbitration in this case Is sufficiently full and explicit to define the controversy and subject-matter upon which the arbitra¬ tors were to act. It gives the date and place of the collision, the vessels concerned in it, and their ovwieie, and provides for the se lection of HiMinipire by the two persons named as arbitrators, If (hey cannot agree. Tho award, oh Its face, shows that the atbl- trators acted upon the matter submitted to them, and made an award fully within the powora with which they were clothed. Tho rule as to the eflect of an award is stated by Judge Story In his learned work on equity jurisprudence, $1,452: "It ll woll known that when a suit la brought at common law upon an award, no extilnslo circumstances, or matters'of fact tfe Aors the award, can be pleaded or given In evidence todeleat It. Tlius,'fnrexaniple, fraud, partiality, misconduct, or mistake ot the arbitrators is not admlssable to defeat It. But courts of equity will, In all such cases, grant relief, and upon due proof set asido the award." This award, being within the powers of the arbitrators, must be held final, until set aside by a direct proceeding for that pur-1 ocems to me, be attached collaterally In a cato like, this, The avard merges the orig¬ inal oause or action, and extinguishes the contract or tort on which the right of action was founded. This position Is fully sus¬ tained by several cases in the supremo court ol Illinois, and by a large number of text- writers, which I need not take time to quote. Elsenmeyer v. Salter, 77 III. SIS; Hadda- way v. Kelly, 78 III 280; Morse, Arb,400; Story, Eq. Jur. 41,468; Varney v. Browaton 14N.H.4B. Itlsnop'nrtof tho functions of a Court ol admiralty to correct mistakes, reform contracts, or relieve porsons/ron) contraots obtained by fraud. It follows, therefore, as a neveasary conclusion, that an admiralty coutt, which Is not a court of equity within the meaning of the constitution of the United States, Is not olothed with jurisdiction to Inquire Into the action of these arbitrators, and set aside their award on proof outside of the submission and award Itself, for any irregular action on the part of the arbitra¬ tors, or for any fraud practiced on the libel ant to fnduco him to submit the differences In question to arbitration. The only author¬ ity which seems to support the exercise of such a power by a court of admiralty U the case of Taber v. Jenny, 1 Spr. 816. But In that case the question of jurisdiction was not raised or consldeied bj the court, and I do not, therefore, deem It controlling or binding on other courts. In cases wheroa submission to arbitrators and award are pal¬ pably void upon their face, they would fur¬ nish no bar to proceeding In admiralty on the original cause ol action; but It Is other- •wise when the award Is apparently valid up¬ on its face, and extrinsic facts must be re sorted to for the purpose of avoiding It. It is true th*at courts of law have in many cases set aside awards when matters pend¬ ing in a suit before such courts have been submitted to arbitration, and, either by stat¬ ute or by agreement of parties to such sub¬ mission, the award was to be made a rule of court, or basis for some future action by tlie court.. So, too, as In the case of the Sparkle, 7 Ben. 623, when a contract comos belore a court ol admiralty in -n cause of which It has jurisdiction, it will look Into the equities of such contraband not exe¬ cute It If inequitable. But there the court (rarjurlsdlction of the subject matter and simply looks into the eoultles nf the parties under the contract Itself, and, finding it Inequltabe, refuses to enforce it But In this case 'the parties made a submission of their differences to arbitra¬ tors voluntarily, so far as appears upon the face of the papers, when no suit was pond lug, and If by reason of any extrlnslo facts the award of these arbitrators ought not to be binding, it does not come within the province of a court of admiralty to Inquire into these facts and set aside the award, which it must do before It can proceed to the merits of the original controversy, the mere fact that the original cause of action was within the jurisdiction of admiralty does'not clothe this court with power to act upon this con¬ tract nf submission and declare It void, be¬ cause its execution was obtained by the fraud of Higgle, nor to say that the award Is inoperative by reason of irregularity or mis¬ conduct of the arbitrators, ot by reason ot their mistake or errors ot judgment In the matter over w hlcn they had lull jurisdiction. The-controversy In this case at present Is not whether the tug Union and schooner King, qr either of them, are liable for the damages sustained by "the Floretta, but whoilicr flic declslqn of these arbitrators, an Independent tribunal to whom the par ties submitted the controversy In regard to those damages, shall stand. Entertaining theso views, I have not ex¬ amined caretuliy Into the proof bearing on the conduct ol the arbitrators In the matter of notice to the libelant, as to the time when tbey would hear proof and act In tbe case, nor as to the alleged misconduct of Mr. Hig¬ gle, by w4iloh the libelant waa Induced to sign tho statement, nor have I examined the elaborate report of tho commissioner'! and proofs as to who was blameable for the collUlun, because 'I consider those questions are at an end, If this court has no jurisdiction to Inquire into the validity of this award and lis binding effect. The case will therefore be dismissed for waut of Jurisdiction, and without prejudice to the libelant's right to take such actiou as dismissing the oaae, howover, I shall do it upon the terms that each party shall pay the costs of flielr own witnesses In tho case, because I think this award should have been brought Jo tho attention of the court, and the judgment of tho court takon upon It, as to whether It was a bar to further proceed' lugs upon the original cause of action, with-, —.... of testimony which has been put Into tho record. Eaoh party will bo required to pay their own oosts, and each pay onothlrdof the commissioner's costs, there being three parties to the contest. COPY OF AN ACT TO CONSTITUTE A BUREAU OF NAVIGATION IN THE TREASURY DEPARTMENT. Bo It enaoted by tbe Senate and House of Representatives of the United States of Amerloa In Congress assembled, That there shall be In tire Department of the Treasury of the United States a Bureau of Navigation, undor the Immediate charge of a com mlsslonor of navigation. Sec. 2. That the commissioner ot navi¬ gation, undor the directory of the Secretary of the Treasury, shall have general super- Intendance of the commercial marine and merchant seamen ot the United States, so far aB vessels and seaman are not, under existing lawt, subject to the supervision of any other officer of the Government. He shall be specially charged with the decision of all questions relating to the Issue of registers, enrollments, and licenses ol vessels, and to the tiling and preserving Of those documents; and whenever in title (orty-eight or fifty of the Revised Statutes any of the above named documents are required to be surrendered or returned to the register of the treasury such requirements Is hereby repealed, and such documents shall be surrendered and returned to the commissioner of navigation, Said com¬ missioner shall have charge of all similar documents now in. the keeping of the Register ot the Treasury, and shall perform all the duties hitherto devolved upon said register relating to navigation. Sec. 8. That the commissioner of navi¬ gation shall bp oharged with the supervision nf the law relating to the<admeasureineht of vessels, and the^assigning of signal letters thereto, and of designating their official number; and on all questions oflaterprcta- tlon growing out of the execution of the laws relating to these subjects, and relating to the collection of tonnage tax, and to the refund of such tax when collected erroneously or illegally, his decision shall be flual. Sec. 4 That tbe commissioner of navl- gatloiHHhall annually prepare and., publish a list of vesseU-of the United States belong¬ ing to the commercial marine, specifying the official number, signal letters, names, rig, tonnage, home port, and place .and date ot building of every vessel, distinguishing in such l'st sailing vessels from such as may be propelled by Btuam or other motive power. He shall also report annually to the Sec¬ retary of the Treasury the Increase of ves¬ sels of the United States, by building or otherwise, specifying.thelr number,rig,and motive power. He shall also Investigate the operation of tbe laws relative to navigation, and annually report to tbe Secretary of tho Treasury such particulars as may. In his [judgment, admit of Improvements or may require amendment. Sec. 6. That the commissioner of navi¬ gation shall, under the direction of the Sec¬ retary of the Treasury, be empowered to change the names of vessels of the United States, utitter such restrictions as may have been or shall be prescribed by aot of Con¬ gress. Sec. 6, That the commissioner of navi¬ gation shall be appointed hy the President of the United States, by and with the advice and consoht of the Senate, and sIiaHTeceTve a salary of four thousand dollards per annum. And the Secretary of the Treasury shall have power to transfer from exisiJjigJjuroauB or divisions of the Treasury oTTe clerk, to be deslgnatid as-doputy commlsloner of naviga¬ tion, to act with full powers of said com¬ missioner during his temporary absence from his official duty for any cause, and such additional dorks as he may consider nocessary to the successful operation ot the bureau cf navigation, without Imparlng the efficiency flf the bureaus or divisions whence such clerks may be tiansferred. ' Sec. 7. That this aotshall be In force and take eflect on and after July first, eighteen hundred and eighty-four. Approved, July 6,1884 SALVAGE IN FIRE INrfURANOE. Salvage Is ens of tho terms In use In oon nootlon with unflorwrltlng that has con™ from the earliest days of marine ptaotlee, but the word has undergone «omo change In it. application in the meantime; at first It was used to deilgnato solely the compensation paid for services rendered by salvors, others.» than ofiloors and crew of disabled vessels^ inland lakes and navigable rivers, and bad no reference to tbe property thus saved, so aid rendered to vessels In distress at sea Is termed "Salvage Services." Salvage scr. vices are usually paid for by a certain share of the rescued property to be fixed by and at the discretion or admiralty courts, where not fixed by law, at Is the case in lotne countries. It Is a peculiarity In salvage ser¬ vice*, however, that no salvage is earned un¬ less the property li saved. The term, however* eventuall/oame to be applied to any remnanta under what Is known aa a constructive total loss" In marine praotlee, and theoompensatlpn paid to salvors was distinguished as "salvage expenses," which became a subject of general average among the several owners under certain agreed lor contingencies, tbe Insured baa the option of abandoning the salvage to his un¬ derwriters and claiming as for a total litis; the abandoned remnants, upon acceptance of the abandonment, become the property of tho underwriters to be disposed of for their benefit, and it not unfrequently oc- , curs that good returns are reached by ju¬ dicious handling of the salvage, upon Che ohances of a rUIng market. Abandonment originated In the principle of Indemnity, which requires that tbe In¬ sured shall not be paid tiut full value of lit* Insurable Interest and nt the aame time re- ~~ tain such Interest, or any portion of It, such as retaining the salvage after receiving pay¬ ment for a total loss. From this same prin¬ ciple results tbe doctrine of subrogation, under whlcl, upon the payment of a loss, total or partial, an equitable right to suoh Interest itself, vesta In tho underwriters to the extent to which payment may have been made. Under the fire policy the term salvage Is used In the sense nf sajfe or saved, and is In¬ discriminately applied alike tp the property at risk-and to the insurance covering It. As , connected With property under Insurance It weans that portion, large or sifiall, wlibh may have been saved from, or remain after, the fire In a sound or damaged condition, when applied to the policy It has reference-" to any difference between Ihe amount of the insurance and the actual sum paid for loss thereunder, tbe difference belnjr, the salvagl or amount saved upon the Insurance. '1 As the Are Insurance cqntraot provides! for no optional tra .tier, by the Insured for salvage property, as In abandonment under the marine policy, except by speolal agree¬ ment, the property saved, the salvage, re¬ mains the property, of the insured and at bis, disposal alter having been duly valued', and tq the amount of such value diminishes the claimngalnsttho Insurers. It may some¬ times operate to the interest, In vexed claims for loss, to accept an- abandonment of tbe • salvage and pay aa for a total loss; but com¬ pulsory abandonment is not recognized in the' fire branoh, and where, as In the fire polloy, abandonment la free, there can be really no salvage as recognized in marine practice. Nevertheless the equitable doc¬ trine of subrogation of the rights of the-in sured as against third parties, to the Insurers, intervenes aa In marine adjustments, witness mortgagee Insurances, where, upon payment of loss to tho mortgagee the companies are. subrogated to his securities as against the mortgagor to the amount of loss paid- Inasmuch as the larger portion of all fire losses are partial only as to the amount of Insurance upon the burned property, thus leaving more or leas salvage alter the loss, the chances for these savings always enter largely, Into tbe' underwriters calculation ot rates to be charged upon any" class of hazard offered for Insuranoe. Tho probable loss in the event of Are beoomes therefore a serious question for consideration; the connection between rates on the risk and salvage on the loss beoomes an Interesting element In Are underwriting that la not comprehended outside of the fraternity.—Jiutironce Socio!;/- A CLEVER INVENTION. THE VAN STBAUBENZIE. pose In a court of equity; It cannot, as It j lie mnj he ad vlsedlo set aside the a wind. In Captain Gunning, nf tbe Arm ol«jrosby is Gunning, has gone to Port Arthur to super¬ intend the wreoking operations of the schooner Sir C. T. Van fitraubenzle, which wont ashore last fall. Advices from Port Arthur say that the wreckers are^maklng fair progress In the work, and hope to have the vessel off In a few days She will be carried to Sarnla, where the underwriters will either sell or rebuild her. .The Van Straubenzie la at present the property of the underwriters, her owners having abandoned her last season when she went ashore. She Is said to be In fair condition, and her bill of repairs w III not be very heavy. An inventor has been testing an electrlca appliance on board the propeller Con- Jiemaugn, of the Anohor Line, which pro¬ mises to prove a valuable assistant of masters In handling their craft in the rivera or In close quartets, because it Informs them how tbe engines are working. It Is known at * "tell ale," and la placed on the pilot house, Just lot front of tbe captain's stand. It ls*very much Ike a clock face or gauge. There lsabar.d on It which is worked by an electric ourrent carried through the wires connecting with the engine. If the latter are working back¬ ward-the band Indicates the faoton the dial and the same If they are working ahead. When the engines are stopped the hand In¬ dicates It also. Recently Captain Butlin, Superintendent ol the Goodrich TransporU- t? 9om,Psny- «nd Mr. Austrian, of Ihe Lake Michigan and take Superior Line, ex¬ amined the machine and said It was a very c ever Invention, and would ptove valuable aboatd of low pressure boats.