Rhodes v. United States

76 Ct. Cl. 618, 1933 U.S. Ct. Cl. LEXIS 359, 1933 WL 1796
CourtUnited States Court of Claims
DecidedJanuary 9, 1933
DocketNo. K-431
StatusPublished

This text of 76 Ct. Cl. 618 (Rhodes 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
Rhodes v. United States, 76 Ct. Cl. 618, 1933 U.S. Ct. Cl. LEXIS 359, 1933 WL 1796 (cc 1933).

Opinion

Williams, Judge,

delivered the opinion of the court:

The Government of the United States participated, with an exhibit, at the Sesquicentennial Exhibition held in Philadelphia, Pennsylvania, in 1926.

The purpose of the Government exhibit was to illustrate the function and administrative faculty of Government, tending to demonstrate the nature of our institutions, and their adaptation to the wants of the people and the progress of our people in the advancement of peace, the arts, and industries.

The exposition was held under the auspices of the Sesquicentennial Exhibition Association, a Pennsylvania corporation organized for that purpose. To enable the Government to participate in the exposition, Congress created the National Sesquicentennial Exhibition Commission, composed [632]*632of the Secretary of State and the Secretary of Commerce, and gave to the commission authority to appoint a commissioner, whose duty it should be to carry out the provisions of the joint resolution of Congress authorizing the participation of the United States in the exposition. Pursuant to this authority the commission appointed Rear Admiral H. O. Stickney (retired) commissioner of the exposition, with authority to:

“ make appointments of necessary personnel and to fix their compensation, to contract for the purchase of supplies and to approve vouchers in payment therefor; to approve pay rolls and other expenditures; and to assume such general administrative responsibilities as may be necessary for the proper conduct of the business of the commission.”

It was decided that the exhibit of the Treasury Department, in part, should demonstrate the methods employed by the Bureau of the Mint in stamping coin money, and the. methods employed by the Bureau of Engraving and Printing in printing United States currency and securities. It not being desirable to work upon real money, the presses of the Bureau of the Mint turned out medals instead of coins, and the presses of the Bureau of Engraving and Printing turned out engravings instead of currency and other Government securities.

Commissioner Stickney agreed that the exhibition association be allowed to dispose of the output of the presses, with the understanding that the “ cost of all medals, manufacture of all dies, the design of the medals, cost of the electric current, and any additional expense for operation will be taken care of by the association.”

The plaintiff made application to the association for the concession of selling the output of the presses, and on May 3, 1926, was awarded the concession. The nature of the concession, as stated in the plaintiff’s application, was as follows:

“For the sale of the official souvenir medal stamped on the press of the United States Mint, located in Government space, in the Transportation Building, known as building #5.
[633]*633“ This souvenir medal will be sold at retail at 25c each.
“ Concessionaire is also to have the right to sell a set of Government engravings at retail for the price of 50c or less per set, as mutually agreed upon.
“ Concessionaire to pay all costs of manufacture and marketing, including the cost of dies, and to pay the Sesquicentennial Exhibition Association 50% of the gross receipts from sales of said articles.
“ This space will be located with Government press of the United States Mint, and being Government space there is no charge to the concessionaire for same. * * * ”
The application for the concession, together with certain conditions, numbered 1 to 20, inclusive, appended thereto, was made a part of the concession agreement between the plaintiff and the exhibition association. Condition no. 14 provides:
“ 14. The concessionaire shall promptly pay to all persons, firms, and corporations, including the association, for power, gas, electricity, steam, compressed air, heat, light, water, or other service, wages, materials, supplies, merchandise, and commodities furnished to the concessionaire or used in connection with the construction, installation, equipment, stocking, or operation thereof. * * * ”

The exhibition association, subsequent to the concession agreement of May 3,1926, agreed to furnish the electric current for operating both the presses of the mint and the presses of the Bureau of Engraving and Printing.

The plaintiff was repeatedly requested by the contact officer to forward to him a copy of the agreement with the exhibition association, and was advised that it would be necessary for him to enter into a similar agreement with the Treasury Department. On June 14,1926, plaintiff wrote the contact officer, saying:

“ I am enclosing copy of contract entered into, with the approval of the department, by and between the * * * association and myself covering the sale of the output of the presses * * *.
“It will be observed that the exposition company will furnish electric current for operating both the presses Íí ‡ ^
“ It is also understod by me that I will furnish all necessary blanks used in coining the medals in the mint exhibit-
[634]*634“ It is also understood by me that any material on which engravings may be printed, other than paper, will be furnished by me.”

The plaintiff’s interpretation of the concession agreement between the association and himself is so obviously wrong that comment upon it is unnecessary, other than to point out that the agreement obligated the plaintiff “ to pay all costs of manufacture and marketing, including dies, * *

Upon the receipt of plaintiff’s letter of June 14, the contact officer wrote plaintiff the letter set out in finding VIII. Plaintiff contends this letter constituted a contract between himself and the defendant, which obligated the Government to furnish all labor and material in connection with the Treasury Department’s exhibit, and to deliver to him the output of the presses of the mint and of the Bureau of Engraving and Printing. His suit herein, in which he claims a loss and damage of $50,000, is predicated on alleged breaches, by the defendant, of this agreement.

Plaintiff’s contention that the letter of June 17,1926, was a contract between himself and the defendant cannot be sustained. The contact officer had no authority to enter into contracts in relation to the exhibit of the Treasury Department at the exposition, that authority being expressly and solely in the commissioner. The contact officer in his testimony frankly disavowed any authority on his part to enter into a contract with the plaintiff, and stated that the letter was not intended fco be a contract but was intended to be, and was, a statement of the Treasury Department’s views of the conditions under which the output of the presses would be turned over to the plaintiff under his concession, these conditions being the same as those under which similar concessions had been conducted at former exhibitions in which the Treasury Department had participated.

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Bluebook (online)
76 Ct. Cl. 618, 1933 U.S. Ct. Cl. LEXIS 359, 1933 WL 1796, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rhodes-v-united-states-cc-1933.