Opinion · Supreme Court of the United States
United States v. Utah, Nevada & California Stage Co.
199 U.S. 414
- Type
- Opinion
- Court
- Supreme Court of the United States
- Jurisdiction
- Federal
- Date
- 1905-11-27
- Topic
- general
. Mr. Justice Day, after making the foregoing statement, ■ delivered the opinion of the court. It is the contention of the Government that, under the authority of the Postmaster General to require new or additional mail messengers or transfer service, without additional compensation, the contractor might be required to perform the additional service made necessary by the establishment of the Industrial Building branch under the authority of the act of Congress of March 3, 1893, .27 Stat. 732, authorizing the renting of the building to be used for general post office purposes in the city of New York. The findings of fact establish that this Industrial Building branch was more than three miles distant from the general post office, and was intended to anri did transact nearly all of the business north of Fourteenth street.
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Headnotes
- Contracts Law — Interpretation The same principles of right and justice that govern contracts between private individuals control the construction and enforcement of contracts between the Government and private parties. 199 U.S. at 420
- Contracts Law — Mail Service Contracts — "New or Additional Service" Clause A contract clause authorizing the Postmaster General to order "new or additional service" of the same character without additional compensation does not extend to vast, unanticipated additional work, such as service necessitated by the establishment of an entirely new postal facility not contemplated by either party at the time of contracting; there is a limit to the service that may be required without additional compensation, lest the Government be empowered to ruin a contractor by wholly unanticipated demands that no caution or prudence could have foreseen. 199 U.S. at 419–420
- Contracts Law — Interpretation Because the phrase "new or additional service" is not one of exact meaning that defines the precise extent of the contractor's obligation, it is subject to a reasonable construction, and in giving it that construction the court must examine the entire contract and consider the relation of the parties and the circumstances under which it was signed. 199 U.S. at 420
- Contracts Law — Misrepresentation in Government Advertisement — Bidder's Reliance Where a Government advertisement for proposals positively and unequivocally states a fact peculiarly within the Government's knowledge, such as the number of stations to be served, the contractor may presume the Government's statement is correct, and a general clause requiring bidders to inform themselves and disclaiming liability for mistakes does not compel an independent investigation of a fact the Government has placed beyond doubt; the contractor is therefore entitled to extra compensation for performing double the specified service. 199 U.S. at 421–422
- Contracts Law — Mail Service Contracts — Scope of Delivery Obligation A mail service contract obligating the contractor to deliver the mail "into the post offices, mail stations and cars" reasonably requires the contractor, without additional compensation, to carry the mails up and down steps at elevated railroad stations, since delivery at the foot of the steps would not be sufficient to place the mail in the cars. 199 U.S. at 422
UNITED STATESv. STAGE COMPANY,199 U.S. 414(1905)
26 S.Ct. 69
UNITED STATESv. UTAH, NEVADA AND CALIFORNIA STAGE COMPANY.
UTAH, NEVADA AND CALIFORNIA STAGE COMPANYv. UNITED STATES.
APPEALS FROM THE COURT OF CLAIMS.
Nos. 51 and 52.
Submitted November 8, 1905.
Decided November 27, 1905.
THIS is an appeal and cross-appeal from a judgment of the
Court of Claims upon a demand for extra compensation in the
performance of a contract made on December 21, 1892, between the
United States, represented by the Postmaster General, and the
Utah, Nevada and California Stage Company, for the rendition of
certain covered regulation wagon, mail messenger, transfer and
station service on mail route number 207,003, in the city of New
York, for a term from July 1, 1893, to June 30, 1897. The
advertisement contained certain instructions to bidders, a part
of which is as follows:
"The contractors under this advertisement will be required to
perform, without additional compensation, any and all new or
additional service that may be ordered from July 1, 1893, or at
any time thereafter during the contract term, whether between
post offices and railroad stations, between post offices and
steamboat landings, between post offices and mail stations or
between the several railroad stations, steamboat landings and
mail stations now established or that may hereafter be
established, whether caused by the establishment of new or by
change of site of existing post offices, railroad stations,
steamboat landings or mail stations within said cities or caused
by the alteration of the routes made necessary by any other
reason.
"The statements of probable additional service that may be
necessary on the routes under this advertisement are given so
that bidders may be as fully advised as possible of the amount
likely to be required. It will not, however, limit the
Page 416
liability of the contractors to perform all service that may
become necessary without additional pay.
"Bidders must inform themselves of the distances, the running
time, the weight of the mails, the condition of hills, streets,
toll bridges, ferries, and obstructions of all kinds, whereby
expense may be incurred, and as to the probable increase,
additional service, or changes likely to be rendered necessary.
Claims for additional pay based on such grounds, or for alleged
mistakes or misapprehensions as to the service required, or for
bridges destroyed or ferries discontinued, cannot be considered."
The Stage Company, having submitted a proposal under this
advertisement, was awarded the contract, and the same was duly
entered into. Among other things it was stipulated:
"To take the mail from and deliver it into the post offices,
mail stations and cars at such points and at such hours, under
the directions of the postmaster at New York, N.Y., approved by
the Postmaster General, as will secure dispatch and connections
and facilitate distribution, and at the contractor's expense for
tolls and ferriage.
"To perform all new or additional or changed covered
regulation wagon, mail messenger, transfer, and mail station
service that the Postmaster General may order at the city of New
York, N.Y., during the contract term, without additional
compensation, whether caused by change of location of post
office, stations, landing, or the establishment of others than
those existing at the date hereof or rendered necessary, in the
judgment of the Postmaster General, for any cause, and to furnish
such advance or extra wagons from time to time for special or
advance trips as the Postmaster General may require, as a part of
such new or additional service."
After the contract was entered into, Congress having made an
appropriation for the purpose, a new distribution station was
established at Forty-fourth street and Lexington avenue, in the
city of New York, known as the Industrial Building station. At
the time of the advertisement for proposals,
Page 417
which resulted in the contract, to wit, on September 15, 1892,
the service therein referred to involved the carrying of the
mails for approximately 973,674.22 miles per annum. In the
advertisement bidders were notified that the probable annual
increase in such service would amount to 6,718.40 miles. Between
the time of the advertisement and the time when complainant
entered upon the performance of his contract additional service
was required, which increased the amount of annual mileage to
1,012,604.54 miles. On August 22, 1893, an order was made by the
Second Assistant Postmaster General, requiring additional mail
service to supply the mail station at Forty-fourth street and
Lexington avenue, as per certain statements attached to the
order, and a further order was made on October 23, 1893, for
additional mail station service. Under the arrangement ordered by
the department, all first class matter (letters) previously
collected in the district of Station H (removed into the
Industrial Building from 156 East Fifty-fourth street) continued
to be received and handled there; massed matter made up by the
States for the East, North and West, which had previously been
sent to the general post office for distribution, was sent to the
Industrial branch to be distributed. South and West mail was
taken there during the period within suit and assorted, and all
of the second-class bulky matter of publishers above Fourteenth
street, which had formerly been received at the general post
office and Station O, was delivered at the Industrial Building;
also, all third and fourth class matter, mailed in uptown
stations, which had previously come to the general post office,
was sent to the Industrial Building, relieving the general post
office from handling that matter. The result of the orders
aforesaid was that claimant was compelled to increase the number
of wagon trips from October 25, 1893, to February 6, 1895, over
and above what would have been the normal increase, and increased
the distance to be traveled by the wagons, over and above the
normal increase, 311,939 miles for the period from October 5,
1893, to February 6, 1895.
Page 418
The Industrial Building was rented in March, 1893, for postal
purposes, in order to relieve the general post office, which had
become inadequate to accommodate the increased volume of
business. Station H, on May 1, 1893, was moved from 156 East
Fifty-fourth street into the Industrial Building. In connection
with Station H there were inaugurated in the premises the
district departments, variously known as district stations.
By establishing the distribution station in the Industrial
Building, and issuing the orders above set forth, there was no
diminution in the number and character of the runs to and from
the general post office, nor was the mileage at said general post
office thereby diminished. To perform this extra service to and
from the Industrial Building the claimant was required to
purchase from 80 to 100 additional horses, and from 32 to 33
additional wagons; to put on from 45 to 46 new runs, and to
employ from 33 to 50 additional men — drivers, hostlers, etc. The
orders resulted in such increased speed in carrying the mails
from the Industrial Building to some of the railroad stations,
that in obeying them it was necessary to violate the city
ordinances as to the rate of speed; it largely increased the wear
and tear on the wagons; it injured and shortened the period of
usefulness of the horses, some of them dying from overexertion in
hot weather by reason of the fast driving, made necessary by the
short time allowed to make the various trips.
The increase of runs to the railroad stations outside the city
of New York, made necessary by the establishment of the extra
service from the Industrial Building, increased the necessary
expenditure by the claimant, in the matter of ferry tolls, in the
sum of $9,950.22.
At no time prior to the making of said bid, or prior to
entering into said contract, was any intimation or information
given by the defendants' officers to claimant that they
contemplated or intended the establishment of a service at the
Industrial Building.
Page 419
A postal station was established in the Industrial Building,
and the contractor was required to transport the mails between it
and the various railroad stations and some postal stations. This
postal station was constituted as follows:
"Station H was moved May 1, 1893, from its location at No. 156
East Fifty-fourth street into the above-named premises.
"Thereafter, on September 1, 1893 (service began October 4,
1893), there was inaugurated in the same premises and in
connection with Station H the distribution department, which was
variously known as `Distribution station,' `Industrial station,'
and `Station H (distribution department),' and the two together
were sometimes known as `Industrial Branch station.'
"Before and after the removal of Station H, as above stated,
it was in all respects a branch post office, at which there were
collections and deliveries of mail by carriers, distribution of
mail matter for dispatch, registration of letters, sale of
stamps, and the issuing of money orders.
"Both that part of the industrial branch which had been known
as Station H, and that part which was referred to as
`Distribution station,' etc., were situated on the same floor of
the Industrial Building, and were at all times connected by a
passageway. The former was in charge of a superintendent of
station, and the latter was, until January 5, 1895, under the
direction of an assistant of the superintendent of mails of the
general post office. Station H continued the collection and
delivery of mail by carriers, the sale of stamps, the
registration of matter, and sale of money orders, while the
distribution department had charge of the distribution of second,
third and fourth class matter. The collectors for Station H
proper carried their collections of mail directly into and
deposited them in the distribution department and the
distribution for dispatch and the assortment for city delivery
were made there.
"After the equipment of Industrial Branch station, second
class mail matter mailed by publishers and originating north of
Fourteenth street was mailed at that station.
Page 420
"This mail matter had previously been mailed at the general
post office and at Station O, at which points the distribution
had theretofore been made and dispatch made to the several
railroad stations, as specifically stated in the advertisement.
Thereafter no further such mailing of second class matter was
made at Station O, and all dispatches of said mailed matter for
the West and New England States and to and from Grand Central
Station were made from the Industrial Branch station, a distance
of approximately 6 blocks, instead of from the general post
office, 3 1/2 miles distant, and from Station O, 1 3/4 miles
distant, as theretofore.
"The congested state of the general post office on account of
lack of adequate space, for the remedy of which Station O had
been established some years before, was well known for some time
prior to the advertisement and proposal for this service."
The advertisement of September 15, 1892, containing provision
for covered regulation wagon, mail messenger, transfer and
station service, which was made a part of the contract, undertook
to give a schedule of service probably required in the city as
the same existed and was in operation on August 15, 1892, as
stated in the advertisement, "so that bidders might be as fully
advised as possible of the amount of service likely to be
required." The advertisement inadvertently stated the service
between the Manhattan Elevated Railroad station and the general
post office and certain branch stations at one-half of the number
of transfers actually required, consequently the Stage Company
was required to perform, and did perform, double the number of
trips specified.
In the performance of the contract certain foot service was
required, which, it is contended, was not included in the
contract, which necessitated 479,875 trips going up and down
steps in making delivery of mail to messengers on elevated
trains, the service requiring the employment of additional men at
each station.
From the findings of fact the Court of Claims held the complainant
Page 421
entitled to recover the sum of $68,483 as compensation for the
additional service under the orders of the department, made
necessary by the establishment of the extra service in connection
with the Industrial Building, the sum including $9,950.22
expenses incurred by the Stage Company in the matter of ferry
tolls; also $14,538 because of the double service required
between the Manhattan Elevated Railroad and the general post
office, and certain branch post offices, growing out of the
mistake in the advertisement in stating the number of trips
required at one-half the actual number. It disallowed the claim
for extra compensation on account of the "foot service" required
in delivering the mail upstairs at the elevated railway stations.
39 C. Cl., 420, 440.
"The elementary canon of interpretation is, not that particular words may be isolatedly considered, but that the whole contract must be brought into view and interpreted with reference to the nature of the obligations between the parties, and the intention which they have manifested in forming them.Boardmanv.Reed, 6 Pet. 328;Canal Co. v.Hill, 15 Wall. 94."
And, upon the same subject, Mr. Justice Bradley, in the case ofCanal Co. v.Hill, 15 Wall. 94, 99, said:
"We should look carefully to the substance of the original agreement . . . . as contradistinguished from its mere form, in order that we may give it a fair and just construction, and ascertain the substantial intent of the parties, which is the fundamental rule in the construction of all agreements."
We cannot believe it possible that the parties to this contract contemplated the establishment of a new postal departmentPage 424in the city of New York, not then authorized by any act of Congress, which should so greatly increase the service, requiring more than 300,000 miles of additional transfer service and nearly $10,000 of additional expense for ferrying during the time covered in the suit. The Government, in its advertisement, had stated the probable additional annual mileage at 6,718.40 miles. This may be presumed to have been a fair and impartial estimate, made for the benefit of those with whom the Government was about to contract, notwithstanding they were warned that it was not conclusive, There is nothing in the record to show that it was not a reasonable estimate in the light of the facts then known. In this case, after the contract was entered into, this enormous new service, clearly not intended by either of the parties to be rendered, was required. In this instance we think the limit of reasonable requirement under the new and additional service clause was exceeded and the service required cannot be held to be within the terms of the contract. We find no error in the Court of Claims reaching this conclusion.
2. The second question involved is as to the right of the contractor to recover because the Government's advertisement for proposals, instead of stating the number of elevated stations to be served at four, which was, in fact, the number, gave the number of stations at two, thus doubling the number of trips necessary. It is true that the advertisement required the bidders to inform themselves as to the facts, and stated that additional compensation would not be allowed for mistakes; but, in the present instance, the Government in its advertisement had positively stated the number of stations at two. The contractor had a right to presume that the Government knew how many stations were to be served; it was a fact peculiarly within the knowledge of the Government agents and upon which, in the advertisement, it spoke with certainty. We do not think, when the statement was thus unequivocal, and the document was prepared for the guidance of bidders for Government service, that the general statement that the contractor must investigatePage 425for himself, and of non-responsibility for mistakes, would require an independent investigation of a fact which the Government had left in no doubt. We think the Court of Claims correctly allowed this item.
3. As to the compensation for the so-called "foot service," for carrying the mails up and down the steps at the elevated railroad stations, the delivery of the mail at the foot of the steps would not have been sufficient, and the contractor agreed to deliver the mail into the post offices, mail stations and cars. The statement of facts shows that the preceding contractor had delivered the mail on the platform of the stations at the door of the cars. We think the contract was not exclusively for wagon service, but, reasonably construed, required the delivery of the mail into the elevated stations in such wise as to be placed in the cars, and consequently required it to be carried upstairs without extra allowance of pay. We find no error in disallowing this claim for extra compensation.
The judgment of the Court of Claims isAffirmed.