Horace Harmon Lurton

“ Rep. 612, the words 'the liability of the owner . . . shall in no case exceed,' etc., were construed as extending to any liability 'for any act, matter, or loss, damage or forfeiture, done or incurred;' and as therefore providing that the 'owner shall not be liable beyond his interest in the ship and freight for the acts of the master or crew, done without his privity or knowledge.' Upon this interpretation of § 4283, it was held that liabilities of the owner for injuries to persons were included in the limitation, as well as injuries to goods. ”

“ It declares that the individual liability of a shipowner shall be limited to the proportion of any or all debts and liabilities that his individual share of the vessel bears to the whole; and the aggregate liabilities of all the owners of a vessel on account of the same shall not exceed the value of such vessel and freight pending. The language is somewhat vague, it is true; but it is possible that it was intended to remove all doubts of the application of the limited-liability law to all cases of loss and injury caused without the privity or knowledge of the owner. ”

“ The section under consideration includes debts, save wages of seamen and liabilities of an owner incurred prior to the passage of the law. The avowed purpose of the original act was to encourage American investments in ships. This was accomplished by confining the owner's individual liability, when not the result of his own fault, in the instances enumerated, to his share in the ship. The same public policy is declared to be the motive of the act of which this section is a part. True, a liability may arise out of a contract as well as from a tort. ”