37 F. 543 | E.D. Mo. | 1889
The intervening libels filed by the petitioners against the steam-boats Dacotah and Wyorning, were dismissed for reasons heretofore stated. 36 Ped. Rep. 494. A surplus remains in the registry after the payment of all admiralty liens. Petitioners have filed claims for the surplus, and it becomes necessary to determine the question that was left undecided on the former hearing, whether they are entitled to the surplus in preference to the mortgagees. The facts are that petitioners advanced money to “Hunter Ren Jenkins, Manager of the Steamers Dacotah and Wyoming.” The steamers belonged at the time to Jenkins, and to the mortgagees Bailie R. and Sandford B. Coulson. Jenkins had control of them for the benefit of himself and his co-owners, and borrowed and used the money in question for his own and their benefit. Subsequently Jenkins purchased the interest of the Coulsons in the steamers, and to secure the purchase money agreed to be paid therefor executed the mortgages under which the Coulsons, as mortgagees, now claim the surplus in the registry. It must he confessed that the facts developed predispose the court to award the money to the petitioners, if such a decree can be justified on legal grounds. When a surplus remains in the registry after all maritime lieu claims are discharged, no disposition can be made of it without determining who is entitled to it. In determining that question, courts of admiralty (as is often said) act on equitable principles. By that expression no more is meant than that they will recognize the rights of those who had at the time of the seizure a vested interest in the res, such as a legal or equitable lien other than of a maritime nature, and that they will determine as between such lien claimants, and as between them and the owner, who has the superior right to the surplus, and in what order it ought to he distributed. The Lottawanna, 21 Wall. 582, 20 Wall. 223; The Edith. 94 U. S. 523. A mere general creditor of the owner has no lien, legal