Brooks Hardware Co. v. Greer

111 Me. 78
CourtSupreme Judicial Court of Maine
DecidedMay 15, 1911
StatusPublished
Cited by2 cases

This text of 111 Me. 78 (Brooks Hardware Co. v. Greer) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brooks Hardware Co. v. Greer, 111 Me. 78 (Me. 1911).

Opinion

King, J.

This is an action of assumpsit, on an account annexed, brought in the Supreme Judicial Court for Kennebec County, Maine, in which the National Home for Disabled Volunteer Soldiers is summoned as trustee. The principal defendant was defaulted. It was admitted that the alleged trustee had entered into a written, contract with the principal defendant for the complete construction of the improvements of the sewerage and drainage system of the eastern branch of the National Home for Disabled Volunteer Soldiers, located at Chelsea, in said county of Kennebec, and the plaintiff introduced evidence tending to show a balance due the principal defendant in the hands of the treasurer of the Home at the time of the service of the writ upon the alleged trustee. The case was heard by the presiding Justice upon the preliminary question whether the National Home could be legally charged as trustee in this action, and the Justice ruled that it could not be so charged, because it was a disbursing agent of the United States government. The case is before this court on plaintiff’s exceptions to that ruling.

The question thus presented leads at once to- an inquiry as to the creation and constitution of the National Home for Disabled Volunteer Soldiers, and its character and functions. It was established under the provisions of an act of Congress, approved March 21, 1866, and now embodied in R.' S., U. S., sec. 4825 et seq. Section 4825 is as follows:

“The President, Secretary of War, Chief Justice, and such other persons as have been or from time to time may be associated with them, shall constitute a board of managers of an establishment for the care and relief of the disabled volunteers of the United States army, to be known by the name and style of ‘The National Home for Disabled Volunteer Soldiers,’ and have perpetual succession, with powers to take, hold, anid convey real and personal property, establish a common seal, and to sue and be sued in courts of law and equity; and to make by-laws, rules and regulations, not inconsistent with law, for carrying on the business and government of the home, and to affix penalties thereto.” U. S. Comp., St. 1901. P- 3337-

[80]*80In the other sections of the act, and in the subsequent statutory amendments and additions, it is provided1, in substance, and so far as seems material here, that nine managers of the Home (the number was subsequently increased) shall be elected from time to time, as vacancies occur, by joint resolution of Congress; that the managers shall have authority to select sites for branch Homes and have the necessary buildings erected; that the general treasurer shall give bond1 to the United States “faithfully to account for all public moneys and property which he may receive,” and the treasurer of the branch Homes shall give bond to the general treasurer ; that no money shall be appropriated or drawn for the support and maintenance of said Home, “except by direct and specific annual appropriations by law.” In the original act it was provided that the managers should make an annual report of the condition of the Home to Congress on the first Mond'ay of every January, and that they should audit the accounts of the treasurer; but later* provisions in this respect, and as to the limit and regulation of expenditures, were more exacting and explicit, and are important as showing the relation of the “establishment” so created by Congress to the general government.

By the Act of March 3, 1887, c. 362, 24 Stat., 539, (U. S. Comp., St. 1901, p. 3348) it was required, that “all of the expenditures of the said home, including the expenses of the board of managers, shall be made subject to the general laws governing the disbursements of public moneys, so far as the same can be made applicable thereto, and shall be audited by the proper accounting officers of the treasury, under such rules and regulations as may be prescribed by the Secretary of the Treasury.”

By the Act of March 3, 1891, c. 542, 26 Stat., 984, (U. S. Comp., St. 1901, p. 3348), it was provided: “That the accounts relating to the expenditures of .said sums, as also all receipts by said Home from whatever source, shall, in addition to the supervision now provided for, be reported to and supervised by the Secretary of War.”

By the Act of March 3, 1893, c. 210, 27 Stat., 653, (U. S. Comp., St. 1901, p. 3349), it was provided that: “The Secretary of War* shall hereafter exercise the same supervision over all receipts and [81]*81disbursements on account of the Volunteer Soldiers’ Homes as he is required by law to apply to the accounts of disbursing officers of the army.”

And by the Act of March 3, 1901, c. 853, 31 Stat., 1178, (U. S. Comp., St. 1901, p. 3350), it was provided: “That the accounts relating to the expenditures of all public moneys appropriated for the support and maintenance of the National Home for Disabled Volunteer Soldiers shall be audited by the board of managers of said Home in the same manner as is provided for the accounts of the various departments of the United States government, and thereupon immediately transmitted directly to the proper accounting officers of the Treasury Department for final audit and settlement.”

The Home can make no contract not authorized by Congress, or under an appropriation adequate to its fulfillment. Expenditures must be applied solely to the objects for which they are appropriated, and are not to exceed such appropriations. With some small exceptions, all the means for the establishment and support of the Home are provided by Congress.

A consideration of the provisions of the act of Congress of March 21, 1866, which created and provided for the perpetual maintenance of the National Home for Disabled Volunteer Soldiers, as a great national charity to be supported by appropriations from the national treasury, together with an examination of the many subsequent acts of Congress which have explicitly defined the purposes, limited the powers, regulated the management, and controlled the expenditures of the Home, leads us to the conclusion that the essential character and functions of this “establishment” are those of an agency — an instrumentality of the United States government.

It was the United1 States that had the purpose to establish this great public charity, and that was to provide the means for its perpetual maintenance from its treasury. To effectuate that purpose, it created this “establishment” as its agency to execute its will. The money appropriated by Congress from the national treasury for the support of this charity is the money of the United States, and not the money of the Home, and it so remains until expended for the purposes intended. This is clearly apparent from [82]*82the explicit congressional provisions and requirements as to its expenditures, and especially that requiring the treasurer of the Home to give bond to the United States “faithfully to account for all public moneys and property which 'he may receive.”

But the plaintiff contends that, if the National Home for Disabled Volunteer Soldiers is to be regarded as an agency or instrumentality of the; United States, it is, nevertheless, subject to this trustee process, which is in effect a suit against it, because the act which created and established the Home expressly provided that it could “sue and be sued in courts of law and equity.”

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Related

State v. Allard
313 A.2d 439 (Supreme Judicial Court of Maine, 1973)
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211 F. Supp. 457 (D. Maine, 1962)

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Bluebook (online)
111 Me. 78, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brooks-hardware-co-v-greer-me-1911.