Page:Federal Reporter, 1st Series, Volume 7.djvu/260

 248 PEDEBAL EBPOBTBB. �payments out of the proceeds of the ship towards the dam- ages caused by the collision go to reduce the amount of a liability on the part of the master which has been ascertained in this court and is enforceable in this court. The petition is therefore denied. ���The Canada. {District Court, B. Oregon. May 5, 1881.) �1. Ship— MoETOAGE of. �A mortgagor of a ship in possession with the consent of the mort- gagee is thereby authorized to malte any change, addition, or repair thereon necessary and convenient for her preservation and use as a ship, 80 that it does not wilfully depreciate her value as a security to the mortgagee ; and, in such case, the old material displaced by the new may be disposed of by the mortgagor as his property, unaft'ected by the mortgage. �2. Same. �But in case said material is not thus disposed of, nndis lefton board and passes into the possession of the mortgagee with the vessel, and is capable of being used in some form in its ordinary navigation, it would still be within the operation of the mortgage and belong to the mortgagee. �3. Same. �But if the old material, as such, is not suited for use in the naviga- tion of the vessel, the fact that the mortgagor allows it to remain on board does not show that he did not intend to withdraw it from the operation of the mortgage, and appropriate it in exchange for tho new material put in its place. �4. Old Coppbb. �Whilethe Canada was in posession of George Howes & Co., as mortgagors, and making the voyage from New York to Portland, Oregon, she was recoppered at Rio de Janeiro, and the old copper Btowed in her hold and brought to Portland, when she was taken posses- sion of by Sutton & Co., as mortgagees. Hdd, that the old copper was separated from the ship, and withdrawn from the operation of the mortgage, and was the property of the mortgagors. �In Admiralty. �W. B. Gilbert, for libellant. �John H. Woodwara and John W. Whalley, for olaimant. ��� �