Mail Ships Act, 1891

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Regulation as to giving of security for ships engaged in postal service.

3.—(1) Where the owner of any ships, British or foreign, applies to the High Court in England, and—

(a) produces a certificate of a Secretary of State that such owner is subsidised for the execution of any postal service within the meaning of a Convention with a Foreign State to which this Act applies, by reason of receiving from the Foreign State, or from the Government of the United Kingdom or of a British possession, a bonâ fide subsidy for the postal service mentioned in the certificate; and

(b) produces sufficient evidence of the nature of the said service and the number of and the prescribed particulars respecting the ships engaged therein; and

(c) gives notice of the application to the Board of Trade, the High Court, after hearing the owner, and the Board of Trade if they wish to be heard, shall fix the nature and amount of the security which the owner ought to place under the control of the court for the purposes of this Act as respects the ships engaged in that postal service, and fix the maximum number and tonnage of the ships to which the security is to apply.

[² (2) The security shall be the bond of the owner guaranteed, at his option, either—

(a) by one or more responsible sureties (whether natural or corporate persons) permanently resident within the jurisdiction of the High Court; or

(b) by the payment or transfer into court of cash or securities of the Government of the United Kingdom.]

(3) If the owner gives such security to the satisfaction of the High Court, then so long as the security is maintained and is sufficient to the satisfaction of the Court, and the number and tonnage of the ships for the time being actually engaged in carrying mails for the postal service in respect of which the security is given does not exceed the number and tonnage of the ships to which the security applies, the ships actually engaged in carrying mails for the said service shall be deemed to be exempted mail ships, and be entitled to the exemptions and privileges given by this Act to exempted mail ships; and the Board of Trade shall give the prescribed notices for informing the arresting authorities that the ships actually engaged in carrying the mails for the said postal service are exempted mail ships.

(4) Notice of every application respecting any security given in pursuance of this section shall be given to the Board of Trade.

(5) If at any time it appears to the Board of Trade that a security given as respects ships engaged in any postal service is from any cause (whether pending claims, variation of the conditions of the service, [¹ change in the residence or place of business or circumstances of any surety] or otherwise) insufficient, the Board of Trade shall apply to the High Court, and that Court, if satisfied of such insufficiency, shall require the security to be made sufficient to the satisfaction of the Court within a reasonable time, and direct that in default the ships engaged in the postal service shall cease to be exempted mail ships, and that the Board of Trade shall give the prescribed notices for informing the arresting authorities of such cesser.

(6) The amount and nature of the security may be varied and the whole security may be withdrawn, and the income of the security may be disposed of, by order of the High Court from time to time on such application either of the shipowners, or of the Board of Trade, or of any person appearing to be interested, and in such manner, and after such notice, and upon such terms and conditions as may be prescribed by rules of court, or, so far as the rules do not extend, as the Court may think just.

(7) Provided that before the security is actually withdrawn, the High Court shall be satisfied—

(a) that the prescribed notice of the order for withdrawal has been given to the arresting authorities; and

(b) that there is no pending claim for the purposes of which the security may be required;

and upon the prescribed notice of the order for withdrawal being given to an arresting authority, the ships shall, as respects that authority, cease, after the date specified in the notice, to be exempted ships.

(8) Rules of court may be made for carrying this section into effect, and in particular for regulating the nature, amount, and value of the security to be given, and the mode of giving security, and of giving notices to the arresting authorities, and for providing for the evidence of the exemption of ships under this section, and for the information to be given from time to time to the High Court respecting the ships to which the security applies, and for the jurisdiction of the High Court under this Act being exercised in chambers.

[² Substituted by 2 Edw. 7. c. 36, s. 1.]

[¹ Added by 2 Edw. 7. c. 36, s. 1.]