Dexter & Carpenter, Inc. v. United States

275 F. 566, 1921 U.S. Dist. LEXIS 1077
CourtDistrict Court, D. Delaware
DecidedJuly 30, 1921
DocketNo. 3
StatusPublished
Cited by2 cases

This text of 275 F. 566 (Dexter & Carpenter, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dexter & Carpenter, Inc. v. United States, 275 F. 566, 1921 U.S. Dist. LEXIS 1077 (D. Del. 1921).

Opinion

MORRIS, District Judge.

This is a demurrer to a petition filed by Dexter & Carpenter, Inc., a corporation of the state of Delaware, against the United States, to recover the sum of $9,850.98, claimed to be the balance due for coal of the plaintiff requisitioned between October 30 and December 31, 1919, and diverted to the Pennsylvania Railroad. It appears from the petition that the requisition was made by the Director General of Railroads, acting under an order of the United States Fuel Administrator dated October 31, 1919. That order, after reciting the previous suspension of the orders of the Fuel Administrator dated January 14, 1918, and May 25, 1918, in part provides:

“I hereby restore the said order of January 14, 1918, and said portion of the order of May 25,1918, to like effect as if they had not been suspended, and I designate the Director General of Railroads and his representatives to carry into effect the said order of January 14, 19.18, and to make such diversions of coal which the railroads under his direction may, as common carriers, have in their possession, as may be necessary in the present emergency to provide for the requirements of the country in order of priority set out in the preference list included in the order of the United States Fuel Administrator of May 25, 1918, as follows: (a) Railroads, (b) * * * ”

The coal, when requisitioned, was in the possession of the railroads as common carriers, and the railroads were then under the direction of the Director General. The causes of demurrer assigned are: '

“ (1) For that it nowhere appears in said petition that the said the United States is any way connected with said matters therein alleged.
“(2) For that it nowhere appears in said petition that the said the United States is a proper party defendant.
“(3) For that it nowhere appears in said petition that the coal alleged to have been requisitioned by the said defendant was taken for any of the purposes permitted by the said Act of August 10, 1917, to wit: That the said requisitioning of coal was ‘necessary to the support of the Army or the maintenance of the Navy, or any other public use connected with the common defense.’
“(4) For that it nowhere appears in said petition that the act of fixing the price for coal alleged to have been requisitioned was deemed necessary in the judgment of the said defendant for the efficient prosecution of the war.”

In support of its first and second causes of demurrer the defendant urges that the cause of action, if any, set up in the petition, is against the Director General of Railroads, and not against the United States. The plaintiff, on the other hand, takes the position that the United States is liable for all acts of the Director General during the period of federal control of railroads, and cites Westbrook v. Director General of Railroads (D. C.) 263 Fed. 211, and Haubert v. Baltimore & O. R. R. Co. (D. C.) 259 Fed. 361, in support of its contention.

The Director General of Railroads was appointed and his duties defined by a proclamation of the President (40 Stat. 1733), acting under and by virtue of an Act of Congress of August 29, 1916 (39 Stat. 645 [Comp. St. § 1974a]). Neither the statute under which he was appointed nor the proclamation of the President making the appointment purported to confer upon the Director General of Railroads power to requisition property. The powers of the Fuel Administrator, on the contrary, were derived through an order of the President, dated August 23, 1917, made by virtue of the Rever Act (Act Aug. 10, 1917,. [569]*569c. 53, 40 Slat. 276 [Comp. St. 1918, Comp. St. Ann. Supp. 1919, §§ 3115 % e—3115 % kk, 3115t/áA3U5y8rj). The order of appointment delegated to the Fuel Administrator the power and authority vested in the President by that act in so far as it pertained to fuel, section 10 q[ which provides in part:

“That the President is authorized, from time to time, to requisition foods, foods, fuels, and other supplies necessary to the support of the Army or the maintenance of the Navy, or any other public use connected with the common defense, and to requisition, or otherwise provide, storage facilities for such supplies; and he shall ascertain and pay a just compensation therefor.” Section 3115%ii.

[1] The Fuel Administrator, necessarily and as he was authorized to do, appointed agents and representatives to perform acts required to be performed by him. One of such agents was the Director General of Railroads, appointed by the above-mentioned order of October 31, 1019. It is, of course, manifest that the Fuel Administrator did not and could not, by that order or otherwise, enlarge the powers of the Director General as such ; but it is equally clear that he could make the person holding the office of Director General an agent of the Fuel Administrator, and could in the order appointing such agent designate by official title, instead of by individual name, the person so appointed. The adoption by the Fuel Administrator of this method in designating the person holding the office of Director Genera] as an agent of the Fuel Administrator could not consolidate the two offices of Director General and agent o£ the Fuel Administrator, or transform an act done in one capacity by the individual holding the two offices into an act done in the other capacity. While paragraph B of the petition alleges that “the Director General of Railroads and his representatives did * * * requisition for public use * * coal owned by the plaintiff,” yet 1bc remaining allegations of the petition make it clear that such act was done by the individual so designated, not in the capacity of Director General, but as agent or representative of the Fuel Administrator under the latter’s order of October 31,1919. It follows, I think, that the cause of action set up in the petition is not one against the Director General of Railroads.

[ 2] The liability of the United States for coal properly requisitioned by the President through the Fuel Administrator, his agents and representatives, is expressly provided for by section 10 o f the act authorizing the requisition: It provides that “'he [the President] shall ascertain and pay a just compensation therefor.” Furthermore, the Supreme Court, in United States v. Great Falls Mfg. Co., 112 U. S. 645, 656-657, 5 Sup. Ct. 306, 311 (28 L. Ed. 846), quoted with approval in United States v. Lynah, 188 U. S. 445, 462, 23 Sup. Ct. 349, 354 (47 L. Ed. 539), said:

«-s w * We are of opinion Unit tlie United States, having by its agents, proceeding under The authority of an act of Congress, taken the property of ¡ho claimant for public uso, are under an obligation, imposed by the Constitution, to make compensation. The law will imply a promise to make the required compensation, where property to which the government asserts no title, [570]*570is taken, pursuant to an act of Congress, as private property to be applied for public uses.”

I am therefore of the opinion that the petition discloses that the United States is a proper party defendant.

[3] The third ground of demurrer questions the legality of the taking of the coal'.

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Cite This Page — Counsel Stack

Bluebook (online)
275 F. 566, 1921 U.S. Dist. LEXIS 1077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dexter-carpenter-inc-v-united-states-ded-1921.