William Howard Taft

“ The underwriters knew that she was not a desirable risk, they knew that they were taking more than the ordinary hazard and they guarded themselves against it by charging more than the ordinary premium. The theater of the Mackey's operations were, by the express terms of the policy, confined to the waters adjacent to New York, practically New York harbor. The ordinary perils of the sea were not intended, but only such perils as were to be encountered in the comparatively quiet waters referred to. The question of seaworthiness must be considered in the light of the service required. ”

“ Counsel for the insurance companies seek to sustain the judgment of the Circuit Court of Appeals on four grounds. They say, first, that the insurance companies were released from liability because there was not disclosed to them before the voyage a contract of towage, a term of which was material to the risk and was concealed, and the policies were thus avoided. The towage contract provided as follows: "Freeport Sulphur No. 1 will furnish hawser. All other risk and expense to be borne by the tug. It is understood you will keep sufficient men on board to keep up steam and man the tug's pumps. ”

“ In view of this state of the law, the towing contract here shown was not a fact material to the risk, a concealment of which from the underwriters would injure them or avoid the policy.
The second objection is that the tug was negligently towed at too great a speed, proximately causing the loss. There is really very little evidence to sustain the claim that there was any negligence on the part of the towing vessel or her master or her crew. ”

“ The voyage contemplated was first to Freeport, Tex., a distance of some 420 miles, a trip taking some 45 or 50 hours. From there she was to go to Galveston by another towing vessel, also to be satisfactory to the underwriters. The weather from Tampico was fair, and the sea calm. She followed nicely, handled well, and continued in tow through the first night and through the next day, making some 9 miles per hour with no straining or difficulty. Ordinarily, under her own power, she was good for from 10 to 12 miles per hour. ”

“ There is, additionally, the oral testimony which clearly shows that these surveyors were correct in their report and had competently functioned in making their recommendations and accepting the compliance by the owner, as per their certificate. ”