Indorse and transfer for collection, discount, or sale the nego-

tiable paper or securities owned by the bank ; ^ to buy and

sell bills of exchange;^ to borrow money ;^ to collect the

moneys due the bank ;6 and to certify checks drawn by de-

positors against funds in the bank." He has no power to

bind the bank to accept a draft to be drawn in the future,^

or to bind the bank on a certification of his own check, В» or

as accommodation indorser of his own note or bill.^*^

В§ 116. Shipmasters.

(1) Definition. A shipmaster is an agent who has entrusted

to him the management and government of the ship upon a

voyage. He is the first or head officer upon a merchantman,

and as such is responsible for the safety of the ship and cargo,

and is vested in consequence with very extensive powers.^^

1 Merchants' Bank v. State Bank, supra.

2 :\[echanics' Bank r. Bank of Columbia, 5 "Wlieat. (U. S.) 326.

8 Wild r. Bank, 3 Mason (U. S. C. C), 505.

" Unci.

6 Barnes v. Ontario Bank, 19 N. Y. 152; Grain i'. Bank, 11-1 Til. 516.

6 Concord v. Bank, 16 N. H. 26.

' Merchants' Bank v. State Bank, supra : Cooke r. State Bank, 52

N. Y. 96. A verbal certification was held good in Espy r. Bank, 18 Wall.

(U. S.) 604. Denying a cashier's inherent power to certify checks, see

Mussey v. Eagle Bank, 9 Met. (Mass.) 306.

8 Flannagan v. California N. Bank, 56 Fed. Rep. 959.

5 Claflin V. Farmers', &c. Bk., 25 N. Y. 293.

1'^ West St. Louis Sav. Bk. v. Shawnee County Bk., 95 U. S. 557.

Ji Hubbell V. Denison, 20 AVend. (N. Y.) 181; Martin v. Farnsworth,

1 Jones & Spencer (N. Y. City Sui^erior Court), 246.

CONTRACT FOR DISCLOSED PKINCIPAL. 157

(2) Scope of authority. As regards the navigation of the

vessel the master has ahsolute control and authority. As

regards discipline his authority is extensive, but its wilful

abuse will not render the owner liable to a seaman, though it

might to a passenger.^ And such discipline is justified at all

only on the high seas and not in port.^ As regards authority

to make contracts, the nature and extent of such authority is

determined by the customs of the seas and the necessities of

the situation, and is to be determined by the law of the

country to which the ship belongs.^ He has authority to

make " contracts relative to the usual employment of the

ship ; to give a warranty in such contracts ; to enter into

contracts for repairs and necessaries to the ship;" to sell a

perishable cargo to preserve it from destruction, or a wrecked

ship and cargo where it is impossible or highly imprudent to

attempt to carry them to their destination ; to hypothecate

the ship, freight, and cargo in case of extreme necessity ;

to borrow money in case of extreme necessity,^ The further

discussion of a shipmaster's powers belongs to a treatise on

shipping and admiralty law.

1 Gabrielson v. Waydell, 135 N. Y. 1.

2 Padmore v. Piltz, 44 Fed. Rep. 104.

8 The Karnak, L. R. 2 P. C. 505; The Gaetano and Maria, L. R.

7 P. D. 137; The August, 1891, Pro. 328.

4 Evans on Agency (2d ed.), pp. 146-152 ; Swell's ed. pp. 176-182 ;

Story on Agency, §§ 116-123; McCready v. Thorn, 51 N. Y. 454; Gunn

V. Roberts, L. R. 9 C. P. 331; Arthur v. Barton, 6 M. & W. 138.

158 PRINCIPAL AND THIRD PARTY.

K\

CHAPTER X.

Y ' CONTRACT OF AGENT IN BEHALF OF AN UNDISCLOSED PRINCIPAL.

В§ 117. Introductory.

It sometimes haj)pens tliat an agent makes a contract in his

own name and ostensibly for his own benefit, but in reality

for the benefit of an undisclosed principal. In such a case

there are two relations established, — first, the relation of the

agent to the third person under the contract made in the

agent's name, and second, the relation of the principal to

the third person under the contract made for the principal's

benefit. The first relation will be discussed in a subsequent

chapter.^ We are now concerned with the liabilities and

rights of the undisclosed principal.