Page:Federal Reporter, 1st Series, Volume 4.djvu/681

 IN BK BANK 07 NOTA. BCOTI&.. 667 ���IS THB MaTTBB OF THE PETITION OF THE BaNK OF NoVA SCOTIA V, ÏHB PeOCEEDS OF THB BeIG LiLLIAN. �(District Court, B. D. Neia York. July 28, 1880.) �1 SeAMBN— WaGES— RiGHT IN FkBIGHT— LlEN OH ShIP— MoKTGAOBEr- �Pkiority. — The rights of a lender upon the security of freight, mada payable to the lender by a bill of lading, are subject to the seaman's right in the freight to the extent of his wages. Seamen may proceed for their wages against both ship and freight. When they do so pro- ceed, and either fund is sualcieut to pay them in full, the court can direct as to the mode of satisfying their decrees. The equity in the freight, created by an advance upon the credit of the freight, is no greater than the equity in the ship created by a mortgage of the ship. As between two such creditors, the equitable method is to charge the wages upon both funds, pro rata, �McDaniel & Souther, for the bank of Nova Scotia. �Owen d Gray, for Moran. �Benedict, D. J. The question presented by this petition arises as foUows : The master and crew of the brig Lillian libelled that vessel, and also the freight earned upon her last voyage, to recover their wages. The vessel has been seized and Gold, the proceeds amounting to $4,000. The freight proceeded Hgainst, amounting to |1,095.96, has also been attached. The master has obtained a decree by default for his wages, amounting to $270.41, against both the vessel and the freight. The seamen have obtained a decree for their wages, amounting to the sum of $264.30; also against both vessel and freight. Several other claims were presented which are not in dis- pute ; but, af ter paying ail liens but those of the master and seamen, there remain of the proceeds of the vessel in court more than sufficient to pay their wages without resort to the freight, and of the freight more than sufficient to pay the wages without resort to the vessel. The Bank of Nova Scotia now makes it appear that they have a mortgage upon the vessel exceeding in amount the whole of the proceeds now remaining in the regis- try, and having made due proof of their mortgage, and the ����