Barrow Steamship Co. v. Mexican Central Railroad

The plaintiff, as the owner of the steamship Bolivia, made a contract with the defendant for the transportation by that steamer of Mexican pilgrims from New York to Rome.

The complaint alleges that the defendant agreed to ship not less than 250 passengers, seventy-five of the first class, seventy-five second class, and 100 third class. It also alleged that the defendant only furnished sixty-four first class, twenty-nine second class, and forty-four third class passengers, and the plaintiff was compelled to send the vessel with the number of passengers designated, and suffered damage in consequence to an amount stated. The

It was conceded on the trial that if the plaintiff was entitled to any damages, the amount of them would be $5,471, for which amount a verdict was directed by the court, although it would seem from the opinion delivered upon the motion for a new trial that the learned justice presiding entertained, as he said, considerable doubt as to whether the plaintiff had any cause of action against the defendant.

Whether or not a contract was made between them depends upon the construction to be placed upon the correspondence relating to the engagement of the vessel named, and to this correspondence our attention will be now directed.

In a letter written on behalf of defendants, dated March 24, 1888, it was said by the writer amongst other things:

“ Beferring to the subject of our conversation regarding the pilgrimage from Mexico to Borne, I beg to say that our people in Mexico advise that upon favorable terms they can secure a party of about 175 or 200 people, with a possibility of increasing the number. These people will be divided into classes about as follows: Seventy-five, first class; seventy-five, second class; fifty, steerage.”

On March 31st, in a letter written on behalf of the defendant, the writer says: “ Again referring to the subject of the pilgrimage from Mexico to Borne, I have to say that I am in receipt of a telegram from Mexico, advising that all arrangements have been made, so that the party can leave there at an early date, and there is a probability that there will be 250 people or more.”

The answer of the plaintiff to that letter says amongst other things “We beg to confirm the understanding arrived at between us, viz., that you will not ship less than seventy-five first class, seventy-five second class and one hundred third class passengers-for the round trip.”

By letter of the same date, evidently in answer to the letter just referred to, the writer says:

“ Begarding the numbers of the party, I beg to say that my latest advice from Mexico, as mentioned in my previous letter of this date, is that there is a probability that the party will exceed 250, but I have not been furnished with information as to the exact number of each class.”

The next letter found in the order of correspondence is dated April 3d, 1888, written on behalf of the plaintiffs, in which no reference is made to the number of passengers. Upon the same day a letter was written on behalf of the defendant in which it is said: “ I beg to advise you that I am in receipt of further telegraphic communications regarding the pilgrimage party from Mexico to Borne, and am advised that the final details are now being prepared, and that the party will leave Mexico as intended, on the 7th inst.” There is no suggestion in that letter as to the number of passengers and therefore, according to the correspondence up to that time, the understanding was that there would not

April 12, 1888.

George W. Keeler, Ksq., Gen. Kastern Agent, Mexican Central Ry., H61 Broadway, City.

“ Dear Sir — We were very much surprised to learn from your representative this morning of the great fall-off in the numbers of the Mexican Excursion Party, from what were guaranteed-in your letter of the 31st ult., to us, and for which we have been making preparations, namely, 75 first-class, 75 second-class, and 100 third-class passengers. Every other consideration having been sacrificed by us to accommodate this party, we beg to notify you that0 we shall hold you responsible for the passage money, due to us on the numbers originally arranged for.

Yours truly,

Hehdersojst Brothers.”

To this letter the following response was sent on behalf of the defendants :

New York, April 18, 1888.

Messrs. Henderson Bros., Agents Anchor Line, 7 Bowling Green, K. Y. City.

“ GrEHTLEMEH — Upon my return I find your favor of the 12tli inst. regarding pilgrimage from Mexico to Eome.

“ I beg to correct the impression which you seem to have that my letters of the 31st ult. guaranteed you 75 first class, 75 second class, and 100 third class passengers. Those letters contained information as to size of the party exactly as I received it from Mexico, namely, “ that there is a probability that the party will exceed 250,” and, in fact, one of the letters distinctly states that no information had been received as to the number of people in each class. Your Mr. Martin has seen all recent telegraphic correspondence between our people at Mexico and this office upon the subject of this pilgrimage, and while I have expected that the numbers would be in accordance with indications contained in such telegrams, I have made no definite guarantee, either verbally or in writing; and, moreover, had you been guaranteed 250 people, it would have been unnecessary for you to have made daily inquiries during the present week as to the number in the party, as you have-done.

“ As shown in the telegram, of which a copy was left at your office yesterday, this pilgrimage has proved a partial failure, and can result in no profit to the Mexican Central Bailway, or any of the other railways in interest.

“ Under the circumstances, it is but fair that you should accept the situation the same as the other lines, as our chances of securing future parties against competition by direct steamers from Vera Cruz to Europe will depend upon our making a success, a§ far as the people are concerned, of the present pilgrimage, just as

much as though the number had been as large as our people had reason to expect. “Very respectfully,

“ Gr. W. Keeler.”

It will be observed that the last paragraph of this response suggests an acceptance of the situation as but fair, and for the reasons assigned; but it does not appear by anything said or done by the plaintiffs that they waived any of the rights secured by the contract which they regarded as having been consummated, or accepted the suggestion that they should waive any such rights.

It will have been observed from the phraseology employed in the correspondence that the number of excursionists originally contemplated was increased and that there was no suggestion of a diminution of the number finally named until the letter of the 12th of April.

On the 24th of March, the number was stated at or about 175 or 200 with a probability of increasing the number. In the letter of the 31st of March it was said: “ There is a probability that there will be 250 or more,” and when upon that day the plaintiffs wrote to the defendant’s agent confirming the understanding as to 250 passengers of different classes there was no suggestion in the answer to that letter of a less number. The number in the aggregate up to 250 was positively stated; the conjecture was as to the number of each class, about which exact information had not been furnished.

The rest of the correspondence up to the 12th of April was based upon the proposition that there would be 250 passengers in different -classes, with a probability not that it would be less than that, number, but that it would exceed it, and this understanding presented itself in such force as to clearly justify the plaintiffs in making the necessary arrangements to transport the number named, which they proceeded to do.

As the result therefore of the proper consideration and construction of the correspondence, the engagement was for the transportation of 250 persons including the different classes.

It is undoubtedly the rule that the intention of the parties is to govern in the interpretation of contracts, especially when they are ambiguous or uncertain by expression. But the object in view necessarily enters into the consideration of what the parties intended. It certainly was intended that the plaintiffs should make the necessary preparation for the transportation of 250 persons divided into different classes and they were bound to be in readiness at the time designated to carry out such contract and were entitled to the time necessary to make such preparation.

The contract between the parties depending upon the interpretation and construction of the correspondence is sui generis and adjudications in kindred cases are of comparatively little value.

We are referred bygthe learned counsel for the appellants to a number of decisions which he thinks are conclusive. For example, that of the Chicago & G. E. Ry. Co. v. Dane, 43 N. Y., 240 . But the agreement there was to transport not exceeding

The case of Robinson v. Noble’s Admr'x., 8 Peters, 181, is regarded by the learned counsel as similar to this. . But there the agreement was to ship certain stores supposed to amount to 3,700 barrels, assuming one-half as flour barrels and the other as whiskey or pork barrels. "But this was conjectural; whether there would be 3,700 barrels or not is in doubt. It should not be overlooked that in the letter of April 12th the defendants were notified of the attitude taken by the plaintiffs with regard to the contract, and that they would be held responsible for the passage moneyon the numbers originally arranged, notwithstanding which the ship was employed for the transportation, and the numbers furnished carried to their destination.

It may also be said that under any other interpretation of the contract the plaintiffs would be bound to proceed on the voyage with any number of passengers that the defendants chose to furnish, a result, seemjngly, at least, iniquitous.

It is thought that under all the circumstances the plaintiffs were entitled to recover, and that the judgment should be affirmed, with costs.

Yan Brunt, P. J., concurs.

(dissenting). The verdict was directed for the damages sustained by the plaintiff from the failure of the defendant to furnish at least 250 passengers to be carried by the plaintiff by steamer and railway from the city of New York to the city of Rome, and back to the city of New York. The passengers were Mexican pilgrims, visiting Rome by way of Naples. And the contract between the parties for their carriage was made by correspondence.

And the right of the plaintiff to maintain the action to the extent to which it has been permitted, depends upon the existence of an obligation on the part of the defendant to furnish 250 passengers. It did furnish no more than 134. And the damages awarded were for the loss arising out of the difference between that number and 250; whether the defendant became liable for these damages must be ascertained from the letters themselves which passed between the agents.

These letters, as they are contained in the case, commenced with one written on the 24th of March, 1888, by the agent of the defendant to those representing the plaintiff. It refers to a preceding conversation relating to the business, and then adds: “ Our people in Mexico advise that upon favorable terms they can secure a party of about 175 or 200 people, with a possibility of increasing the number. These people will be divided into classes as follows: 75 first-class; 75 second class; 50 steerage.” The plaintiff’s agents replied on the 27th of hjarch stating the prices for the different classes of passengers, but without mentioning any n umber. The agent of the defendant wrote again expressing dissatisfaction concerning the rates, and still further 11 have to say that I am in receipt of a telegram from Mexico, advising that all

Dear Sib — We were very much surprised to learn from your representative this morning of the great fall-off in the numbers of the Mexican excursion party from what were guaranteed in your letter of the 31st ult. to us, and for which we have been making' preparations, namely, 75 first-class, 75 second-class, and 100 third-class passengers. Every other consideration having been sacrificed by us to accommodate this party, we beg to notify you that we shall hold you responsible for the passage money due to us on the numbers originally arranged for.

And on the next day, the defendant’s agent, to whom this letter was addressed, replied concerning the terms of the agreement, as follows: “I beg to correct the impression which you seem to have that my letters of the 31st ult. guaranteed you 75 first-class, 75 second-class, and 100 third-class passengers. Those letters contained information as to size of the party exactly as I received it from Mexico, namely, that there is a probability that the party will exceed 250,’ and in fact, one of the letters distinctly states that no information had been received as to the number of people in each class. Your Mr. Martin has seen all recent telegraphic, correspondence between our people at Mexico and this office upon the subject of this pilgrimage, and while I have expected that the numbers would be in accordance with indications contained in such telegrams, I have made no definite guarantee, either verbally or in writing, and moreover, had you been guaranteed 250 people it would have been unnecessary for you to have made daily inquiries during the present week as to the number in the party, as you have done.”

It seems quite clear from this correspondence that the defendant did not become bound to furnish as many as 250 passengers. The first suggestion as to the number was that the people in Mexico advised that they could upon favorable terms secure a

■ And the plaintiff’s agents in reply stated that they begged to confirm the understanding arrived at that not less than 75 first class, 75 second class and 100 third class passengers would be shipped. There had, however, been no definite understanding or agreement to that effect made. But all that had been done was to make the statement of what were considered probabilities as to numbers. And that as it was finally expressed was, “ that there is a probability that the party will exceed 250.” But there was no agreement in this, or any preceding letter, that it would reach that number. At most, estimates were given which the facts failed to realize. And when the statement was made of the understanding of" the plaintiff’s agents, that was not accepted as a correct result of what previously had been written. But the writers were informed that there was a probability that the party would exceed 250, as that was mentioned in the preceding letter of the agent of the defendant. This was not an acceptance of the understanding mentioned by the plaintiff’s agents. But at most it was a reference to what was written in the preceding letter as to the number of the party expected. And in that letter the number was mentioned as probably 250 or more. It did not obligate the defendant to furnish a party of 250 persons, but stated the advices and probabilities only, which placed the plaintiff’s agents in the position where they could judge for themselves as to the number of people probably to be carried. What was written failed to create any positive obligation that this number of people would form the party.

The agents on each side were supplied with the same information as to what might be expected. And the hopes created by it exceeded the reality. For the result of the disappointment the defendant did not become liable; certainly not to the extent determined at the trial.

The judgment and order should be reversed and a new trial ordered, with costs to the defendant to abide the event.

Judgment affirmed, with costs.