CHICAGO, MILWAUKEE & ST P R CO v. U S(1905)
Messrs. George R. Peck, W. W. Dudley, and L. T. Michener for appellant.
Assistant Attorney General Pradt and Mr. John Q. Thompson for appellee.
Mr. Justice McKenna delivered the opinion of the court:
The appellant, a Wisconsin corporation, filed a petition in the court of claims, August 25, 1896, which it amended July 19, 1900, and by which it sought recovery from the United States of the sum of $9,101.08, for compensation for carrying the mails from Milwaukee, Wisconsin, to Republic, Michigan, and thence to Champion, Michigan.
The services were rendered by the Milwaukee & Northern Railroad Company. Appellant's ownership was derived from that company, as alleged in the petition, as follows:
The United States demurred to the petition on the grounds that (1) 'The claim came to the claimant, if at all, by a pretended assignment, which, as to the United States, was void; (2) the allegations of the amended petition did not state facts sufficient to constitute a claim against the United States.' The demurrer was sustained and the petition dismissed, whereupon this appeal was taken.
The demurrer presented the questions of the validity of the assignment and the merits of the claim. We rest our decision [198 U.S. 385, 387] on the latter. We express no opinion of the validity of the assignment.
The Milwaukee & Northern Railroad ran from Wilwaukee, Wisconsin, to Republic, Michigan, a distance of 255.37 miles. Under the authority given him by law, 'to arrange the railway routes on which mail is carried' ( 3997 of the Revised Statutes of the United States, U. S. Comp. Stat. 1901, p. 2717), the Postmaster General designated the road from Milwaukee to Republic as postal route No. 139,016, and compensation was fixed for carrying the mails thereon. On February 4, 1890, the road was extended to Champion, Michigan, a distance of 8.89 miles. Provision was made for the extension by an order dated February 4, 1890, which directed that service should be extended from Republic to Champion, increasing distance 9.16 miles, less .27 miles, making a net increase of 8.89 miles, 'in accordance with distance circular, and with the understanding that the rate of compensation on this extension will be adjusted in a subsequent order, in accordance with law.'
On December 1, 1890, the following order was made and directed to the general manager of the railroad:
Sir: The compensation for the transportation of mails, etc., on route No. 139,016, between Milwaukee, Wisconsin, and Champion, Michigan, has been fixed from September 23, 1890, to June 30, 1891 (unless otherwise ordered), under acts of March 3, 1873 [17 Stat. at L. 556, chap. 231], July 12, 1876 [19 Stat. at L. 78, chap. 179], and June 17, 1878 [20 Stat. at L. 140, chap. 259], upon returns showing the amount and character of the service for thirty successive working days, commencing September 23, 1890, at the rate of $35,022.37 per annum, being $132.53 per mile for 264. 26 miles.
From February 24 to September 22, 1890, pay is allowed at the rate of $ 1,178.19 per annum, being $132.53 per mile for 8.89 miles extension between Republic and Champion, Michigan.
This adjustment is subject to future orders and to fines and deductions.
It will be observed that this order purports to fix the compensation on route 139,016 between Milwaukee and Champion.
The dates designated are somewhat confusing. However, [198 U.S. 385, 388] in two days another order was issued and directed to the company, which reads as follows:
Sir: The compensation for the transportation of mails, etc., on route No. 139,016, between Republic and Champion, Michigan, has been fixed from February 24, 1890, to June 30th, 1891 (unless otherwise ordered), under acts of March 3, 1873, July 12, 1876, and June 17, 1878, upon returns showing the amount and character of the service for thirty successive working days, commencing September 23, 1890, at the rate of $1,178.19 per annum, being $132.53 per mile for 8.89 miles extension.
This adjustment is subject to future orders and to fines and deductions.
The first order revoked the compensation for carrying the mails from Milwaukee to Republic, which had been fixed, and was manifestly a mistake. The second order was intended to correct the mistake, and confine the adjustment to the extension from Republic to Champion.
The contention of appellant is that the Postmaster General had no power to issue the second order, but was required by 4002 of the Revised Statutes of the United States (U. S. Comp. Stat. 1901, p. 2719) to fix compensation for the whole route as extended. The appellant urges in support of the contention not only the provision of the section, but the practice and usage of the Post Office Department. Section 4002 is as follows:
The section does not sustain the appellant's contention. The Postmaster General is given the power to arrange the railway routes upon which the mail is to be carried, and to adjust and readjust compensation. The orders of December 1 and December 3, respectively, reserved this power, and the only limitations on its exercise, expressed in 4002, is as to the manner of ascertaining the rate, which is to be by the average weight of the mails. There is nothing in the section which requires the abrogation of prior contracts when an extension is made beyond the terminal of an established route, or precludes provision for the extension alone. A contract may not be forced upon a railway. It may accept, however, and become bound by the action of the Post Office Department. Eastern R. Co. v. United States, 129 U.S. 391 , 32 L. ed. 730, 9 Sup. Ct. Rep. 320. The record does not show any protest against the order of December 3. Its terms were unmistakable, and, as counsel for the government observes, 'it may be justly inferred' that the railroad company 'viewed the order of December 3 in the same light, and as having the same force and effect, as intended by the postal authorities.'
Judgment affirmed.