Fred I. Putnam and James A. Overman v. Harry C. Lower, John Kadlec, George S. Herning, Edgar L. Peecher, William E. Barquist and Norman L. Bunker

Fred I. Putnam and James A. Over-man, as holders of a valid recorded preferred ship mortgage on the oil screw vessel Silver Spray, her engines, tackle, apparel, furniture and equipment, bring this appeal from a decree of the district court for the western district of Washington, northern division, foreclosing said mortgage and subordinating it to the wage liens of appellees.

In May of 1954, Robert J. Tobin, owner and mortgagor of the Silver Spray, conceived the idea of conducting a tuna fishing venture in Southern California waters. Since he lacked the necessary funds to outfit such an operation, he placed advertisements in the Seattle Times, and other Northwest Coast papers, seeking persons to invest money on a working share arrangement or fishing lay. In this manner, Tobin contacted appellees Lower, Kadlec, Herning, Peecher and Barquist, and represented to them that he was the owner of the Silver Spray, which was an 80' tuna clipper, and either was or would be equipped with live bait tanks and refrigeration, in order that it could leave Seattle for San Diego by May 15, 1954, to fulfill a tuna fishing contract with the Van Camp Sea Food Company. Induced by these representations,…