William R. Day

“ In order that such claims may be satisfied, the United States has made provision for their protection by bonds upon which persons may recover damages, so that those who furnish property of which the government receives the benefit shall not entail a loss by so doing. Read in the light of this policy, so manifestly just and proper, and the requirements of this contract and bond, we think that the government did not intend that the lien which it reserved for itself should be superior to that of contractors for labor and material who had contributed to the work. ”

“ A majority of the learned judges of the supreme court of appeals of Virginia were of opinion that title did not pass to the government under this contract, and that it was subject to the superior lien of claimants under the state laws of Virginia. It is undoubtedly true that the mere facts that the vessel is to be paid for in instalments as the work progresses, and to be built under the superintendence of a government inspector, who had power to reject or approve the materials, will not of themselves work the transfer of the title of a vessel to be constructed, in advance of its completion. ”

“ In any event, it could not be tolerated that property of the United States could be seized or encumbered under state lien laws of the character in question. We are not now dealing with the right of a state to provide for such liens while property to the chattel in process of construction remains in the builder, who may be constructing the same with a view to transferring title therein to the United States upon its acceptance under a contract with the government. We are now treating of property which the United States owns. ”