Eastern Extension, Australasia & China Telegraph Co. v. United States

231 U.S. 326, 34 S. Ct. 57, 58 L. Ed. 250, 1913 U.S. LEXIS 2491
Supreme Court of the United States·Decided December 1, 1913·No. 419·Published·Cited by 12 cases

Opinion

Mr. Justice Hughes

delivered the opinion of the court.

This is an appeal from a judgment of the Court of Claims which dismissed, upon demurrer, the petition of the claimant for the want of jurisdiction. 48 C. Cls. 33.

The petition averred that the claimant, a British corporation, secured from the Government of Spain, in the year 1879, a concession for the construction and operation of a submarine telegraph cable between the island of Luzon and Hong Kong, with an exclusive privilege for forty years, under which it maintained a cable from Hong Kong to Bolinao; and that in 1897, the Government of Spain granted a further concession for three submarine telegraph cables to provide communication between the Islands of Luzon, Panay, Negros and Zebu, in the Philippine archipelago. Among the conditions of the last-mentioned grant, a copy of which is annexed to the petition and made a part of it, are the following;

*328 “Article 9. The Concessionaire undertakes to work, at his own expense and risk,- the Cables of this Concession for a period of twenty years, the said term to begin from the date' of the taking over of. the Cables and their adjuncts in perfect working order.

“Article 10. The Concessionaire shall enjoy an annual' subsidy of £4,500 (four thousand five hundred pounds sterling)/ payable monthly in twelve instalments, during the whole term of the working of the Cables, the said payments being made at Manila by- the Chief Treasury Office of those Islands.

“Articlel6. The Company holding the Concession shall pay the State the ten per cent, which tax in its application to cablegrams is fixed after first deducting the amount of the expenses for the maintenance of the Stations, calculated at £6,000 (six thousand pounds sterling) per annum, the said expenses not to exceed the amount specified.

“Article 17. It shall be obligatory to transmit official despatches, which shall enjoy precedence, at half the rates charged for those of a private character. ; . .”

In March, 1898, the claimant obtained an additional concession from the Government of Spain for a submarine telegraph cable between Hong Kong and Manila which was completed in the following month.

It was further alleged that the claimant had “actually fulfilled” and continued “to fulfill” all of the conditions of the concessions and “to perform all of the duties imposed upon it ” by their terms. After setting forth the making of the Treaty of Paris, and the cession thereby to the United States of the Philippine Islands, the petition continued:

“Thereupon the United States of America entered into the occupancy of said Philippine Islands, and proceeded to exercise sovereignty over said Islands and of the inhabitants thereof, and to assume jurisdiction and control *329 over all property and property rights in and upon said Philippine Islands, including the. several lines of submarine cable and telegraph land lines established, constructed and operated by the Claimant, and availed itself of all of the benefits and advantages thereof, using the ■said lines of cable and telegraph for its governmental and other purposes, which it has continued to do ever since and still continues to do, and it has become in all respects the successor of the Government of Spain to all rights, privileges and advantages conferred upon and secured and reserved to the Government of Spain under the terms of the aforesaid concessions. . . .

“By reason of the premises the United States of America assumed all of the obligations and the performance of all of the conditions accepted by the Government of Spain and agreed to by it according to the terms of the aforesaid concessions . . . and of each of them, and agreed with the Claimant to perform the covenants and agreements, and to fulfill the conditions, set forth in said several concessions and accepted and agreed to by the Government of Spain.

“The United States of America has failed to perform said agreements and to fulfill- the said conditions, in that it has failed and refused to pay to the Claimant the annual subsidy of £4,500 sterling as required by the terms of Article 10 of the aforesaid concession ... for the years 1905,1906,1907,1908 and 1909, and for each of said years, and by reason of such failure and refusal to pay it has become indebted to the Claimant in the sum of £4,500 sterling for each of said years, with interest on each of said annual instalments at the rate of six per cent per annum from the 31st day of December of the year in which the same became payable.”

And judgment was demanded accordingly for the sum of $109,462.50, with interest as stated.

The Government demurred to the petition asserting *330 (1) that it did not set forth facts sufficient to constitute a cause of action against the United States and (2) that it did not disclose a cause of action within the jurisdiction of the court.

Upon hearing, the court held that it was without jurisdiction and it was upon this ground that the petition was dismissed. 48 C. Cls. 33.

The act of February 24, 1855, c. 122 (10 Stat. 612), creating the Court of Claims, provided that it should hear and determine all claims “founded upon any law of Congress, or upon any regulation of an executive department, or upon any contract, express or implied, with the government of the United States,” and also all claims which might be “referred to said court by either house of Congress.” It required the court to report to Congress the cases upon which it had finally acted, stating the material facts found with its opinion, and to prepare such bills as would be appropriate, if enacted, to carry its' decisions into effect. Important amendments were made by the act of March 3, 1863, c. 92, 12 Stat. 765, which gave jurisdiction of set-offs and counter-claims, authorized appeals to the Supreme Court and provided for payment of final judgments out of any general appropriation made.by law for the satisfaction of private claims.. 1 But at the same time Congress was careful to exclude from the jurisdiction of the court such claims as arose, out of treaty stipulations, {id. §9; 12 Stat. 767). As was said in Ex parte Atocha, 17 Wall. 439, 444: “All the cases of which the court could subsequently take cognizance, by either the original or amendatory act, were cases arising out of contracts or transactions between the government or its officers and claimants; . . .. Those acts have since then applied only to claims made .directly against *331 the United States, and for the payment of which they were primarily liable, if liable at all, and not to claims against other governments, the payment of which the United States had assumed or might assume by treaty.”

The provisions of the act of 1855, as amended, relating to jurisdiction were placed in § 1059 of the Revised Statutes; and § 9 of the act of 1863 became § 1066 of the revision, as follows:

“Sec. 1066.

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Eastern Extension, Australasia & China Telegraph Co. v. United States, 231 U.S. 326, 34 S. Ct. 57, 58 L. Ed. 250, 1913 U.S. LEXIS 2491 (1913).

231 U.S. 326 (Eastern Extension, Australasia & China Telegraph Co. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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