Jacksonville, Pensacola & Mobile Railroad v. United States

21 Ct. Cl. 155, 1886 U.S. Ct. Cl. LEXIS 83, 1800 WL 1461
CourtUnited States Court of Claims
DecidedFebruary 15, 1886
DocketNo. 14572
StatusPublished
Cited by1 cases

This text of 21 Ct. Cl. 155 (Jacksonville, Pensacola & Mobile Railroad v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacksonville, Pensacola & Mobile Railroad v. United States, 21 Ct. Cl. 155, 1886 U.S. Ct. Cl. LEXIS 83, 1800 WL 1461 (cc 1886).

Opinion

Richardson, Oh. J.,

delivered the opinion of the court:

The claimant corporation is a land-grant railroad, aided under the provisions of the Act of May 17, 1856, chapter 31, the fifth section of which is as follows (11 Stat. L., 15):

“ Sec. 5. And be it further enacted, That the United States mail shall be transported over said roads and branch, under the direction of the Post-Office Department, at such price as Congress may by law direct: Provided, That uuttl such price is fixed by law the Postmaster-General shall have power to determine the same.”

The mails of the United States were transmitted over its road from July 1, 1871, to June 30, 1875, under a written contract with sureties, set out in finding ii. From July 1,1875, to June 30, 1876, they were carried under orders of the Postmaster-General fixing the rate of compensation set out in finding iv, without any formal written contract. The company has been fully paid up to the latter date, in accordance with said contract and orders, and there is no controversy in relation thereto.

Siuce June 30, 1876, the mails have been carried as before, but without any formal written contract, and the claimant has been paid in accordance with the statutes in force at the time, and the regulations, orders, and general practices of the Post-Office Department.

Three claims are set up by the company, in addition to the amounts paid, each raising a distinct question of law.

1. In 1876, when the Postmaster-General readjusted the maximum compensation which might be allowed under Revised Statutes, section 4002, he deducted therefrom 10 per cent., as required by the Act of July 12, 1876, chapter 179, section 1 (1 Supp. Rev. Stat., 225), and allowed and paid the claimant accordingly from July 1, 1876, to July, 1878, when he made another deduction of 5 per cent., under the Act of June 17,1878, chapter 259,section 1 (1 Supp. Rev. Stat., 359), and paid according to both deductions to June 30, 1880. (Findings v, vi, vii, viii.) The amount thus deducted from the maximum which the Postmaster-General might have allowed under section 4002 of the Revised Statutes is what is now demanded in this action.

The company claims that on the 1st day of July, 1876, it entered into a contract with the defendants by which the mails were to be carried for the period of four years from that date [168]*168•-at the maximum compensation authorized by Eevised Statutes, «eetion 4002, which could not be reduced either by the Postmaster-General or by Congress during the term of the contract. If such a contract existed the claimant would be right in its allegation that the compensation could not be reduced, as was Meld in the case of the Chicago and Northwestern Railway Company v. United States (104 U. S. R., 681), where it was decided that [the reduction acts of 1876 and 1878, above mentioned, •“apply only to contracts thereafter made, or sueh as did not require the performance of the service for a specific period,” in the language of the head-note of the case as reported.

'The vital question, then, is whether or not such a time contract was entered into by the parties. There was no written •contract, as in the case of the Chicago and Northwestern Bail-way Company, but the claimaut relies upon an alleged implied •contract which it insists springs out of the following circumstances :

By one of the regulations of the Department it is provided as follows:

“ The United States is divided into four contract sections. .A general letting for one of these sections occurs every year, •and contracts are made at such general lettings for four consecutive years, commencing on the first day of July. (Finding xi).”

The claimant’s road was within the section for which contracts were to end June 30, 1875, until the regulation was altered, when it came within the section for which they were to •end July 30, 1876. (Finding xi.)

The only written contract of the parties was made August 18, 1871, to run from July 1, 1871, to June 30, 1875. It was •drawn with strict formality, contained many provisions, and its ^performance on the part of the company was secured by two ¡sureties. (Finding ii.) When it expired it was never renewed.

From July 1, 1875, to June 30, 1876, the service was performed under orders of the Postmaster-Geoeral, dated October 21,1875, and March 21,1876, the latter of which expressly confined its operation to June 30,1876, “unless otherwise ordered.” ^Findings iii and iv.)

The taking and carrying the mails on and after July 1,1876, •the claimant insists, created an implied contract, at the pre-ex-isting rates, for four years, because the company’s road was [169]*169within the section for which contracts was made for that period of time.

In this view we do not concur. The regulations as to contract sections are not made for railroads alone, but for the whole mail service, and include the “ star-route ” service, for which written contracts are understood to be uniformly entered into. It is very clear, we think, that they are intended to apply only to written contracts, and are merely suggestions that the Postmaster-General, when it is found necessary or advantageous to enter into such coutracts, will so make them that the whole will expire during one Presidential term, in classes, at regular yearly intervals, so as to be most convenient and least embarrassing to the next succeeding administration. They do not compel the Postmaster-General to make time contracts in all cases, nor prevent him from accepting services to be paid for 'só long as performed, aud which may be terminated at any time by either party, as circumstances may require. Nor are railroads obliged to make time contracts. It is entirely optional on their part, aud finding ii shows that the Postmaster-General has been able to make, comparatively, but a. small number of such coutracts with railroad companies, the proportion being much less than 10 per cent, of the whole railroad service, and he has practically abandoned the effort. The regulations as to contract sections, therefore, have no application to cases where it-is not practicable or convenient to make time contracts in writing. When written time contracts are entered into the contractors are required to furnish sureties, as the claimant did in the written contract set out in finding ii; aud it would be most unreasonable to hold that when, on the expiration of such a contract, the contractor continues for a day or more to perform like service, the implication of the intention of the parties is that h,e may and shall continue it for a like period of time without sureties. (Eastern Railroad Case, 20 C. Cls. R., 42.) It is a much more reasonable view that the intention of the parties is that the service is continued only at the option of either party, until they can agree upon the terms of a written contract.

Thecase of Railway Company v. United States (101 U. S. R., 543) is cited in support of the claimant’s position. We considered that decision in the Eastern Railroad Case (20 C. Cls. R., 42), to which we refer for a full exposition of our understanding of [170]*170its force and effect. We pointed out that the element of length of time of the contract was not involved therein, and that the Supreme Court held only that a contract existed, in the language of the Chief Justice, “ that payment should be made for what was done.”

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Related

Kansas City, Mexico & Orient Railway Co. v. United States
53 Ct. Cl. 258 (Court of Claims, 1918)

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21 Ct. Cl. 155, 1886 U.S. Ct. Cl. LEXIS 83, 1800 WL 1461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacksonville-pensacola-mobile-railroad-v-united-states-cc-1886.