United States v. Pacific Pacific v. United States

• Decision Date: 31 January 1887
• Citation: 30 L.Ed. 634,120 U.S. 227,7 S.Ct. 490
• Parties: UNITED STATES v. PACIFIC R. R. PACIFIC R. R. v. UNITED STATES
• Court: U.S. Supreme Court

120 U.S. 227

7 S.Ct. 490

30 L.Ed. 634

UNITED STATES v. PACIFIC R. R.

PACIFIC R. R.

v. UNITED STATES.

January 31, 1887.

E. M. Watson, Asst. Atty. Gen., for the United States in both cases.

John F. Dillon and James Coleman, for the railroad company in both cases.

FIELD, J.

The Pacific Railroad Company, the claimant in this case, is a corporation created under the laws of Missouri, and is frequently designated as the Pacific Railroad of that state, to distinguish it from the Central Pacific Railroad Company incorporated under the laws of California, and the Union Pacific Railroad Company incorporated under an act of congress, each of which is sometimes referred to as the Pacific Railroad Company.

From the fourteenth of August, 1867, to the twenty-second of July, 1872, it rendered services by the transportation of passengers and freight, for which the United States are indebted to it in the sum of $136,196.98, unless they are entitled to offset the cost of labor and materials alleged to have been furnished by them, at its request, for the construction of certain bridges on the line of its road. The extent and value of the services rendered are not disputed. It is only the offset or charge for the bridges which is in controversy, and that charge arose in this wise: During the civil war the state of Missouri was the theater of active military operations. It was on several occasions invaded by Confederate forces, and between them and the soldiers of the Union conflicts were frequent and sanguinary. The people of the state were divided in their allegiance, and the country was ravaged by guerrilla bands. The railroads of the state, as a matter of course, were damaged by the contending forces; as each deemed the destruction of that means of transportation necessary to defeat or embarrass the movements of the other. In October, 1864, Sterling Price, a noted Confederate officer, at the head of a large force, invaded the state, and advanced rapidly toward St. Louis, approach- ing to within a few days' march of the city. During this invasion, 13 bridges upon the main line and south-western branch of the company's road were destroyed. Gen. Rosecrans was in command of the Federal forces in the state, and some of the bridges were destroyed by his orders, as a military necessity, to prevent the advance of the enemy. The record does not state by whom the others were destroyed; but, their destruction having taken place during the invasion, it seems to have been taken for granted that it was caused by the Confederate forces, and this conclusion was evidently correct. All the bridges except four were rebuilt by the company. These four were rebuilt by the government, and it is their cost which the government seeks to offset against the demand of the company. Of the four, two (one over the Osage river and one over the Moreau river) were destroyed by order of the commander of the Federal forces. The other two, which were over the Maramec river, it is presumed, were destroyed by the Confederate forces.

Soon after the destruction of the bridges, and during the same month, Gen. Rosecrans summoned to an informal conference, in St. Louis, several gentlemen regarded as proper representatives of the railroad company, being its president, the superintendent, and the engineer of the road, and several of the directors. The court below makes the following findings as to what there occurred.

'By Gen. Rosecrans it was stated that the immediate rebuilding of the bridges was a military necessity; that he should expect and require the company to do all in their power to put the roads in working order at the earliest possible moment; and that he intended to have what work they did not do, done by the government, and withhold from the freight earnings of the road a sum sufficient to repay the government for such outlays as in law and fact it should be found entitled to have repaid. The gentlemen present assured Gen. Rosecrans that they would do all in their power to rebuild the bridges, and put the roads in working order at the earliest moment, but they at the same time represe ted that several of the bridges as they believed, had been destroyed by the proper military authority of the United States, and that in such cases the government was properly responsible for the loss, and should replace the bridges. Those which the public enemy had destroyed they conceded that the company should replace.

'Gen. Rosecrans replied, in substance: 'Gentlemen, the question of the liability of the government for repairing damages to this road is one of both law and fact, and it is too early now to undertake the investigation of that question in this stirring time. I doubt myself whether all the damages which you say the government should be responsible for will be found liable to be laid to the charge of the government. Nevertheless, whatever is fair and right I should like to see done. You tell me now, and I have been informed by some of your representatives individually, that the company's means are insufficient to make these large repairs, and make them promptly. Therefore I want to say to you that, as a military necessity, we must have the work done, and shall be glad to have the company do everything it can, and I will undertake to have the remainder done, and we will reserve out of the freights money enough to make the government good for that to which it shall be found to be entitled for rebuilding any or all of the bridges, and we will return the freights to you, or settle with you on principles of law and equity.' The gentlemen interested in the company reiterated their view of the case, that the company should pay for bridges destroyed by the public enemy, and that the government should replace at its own cost the bridges destroyed by its own military authorities.'

The court also finds that these mutual representations and assurances were not intended or understood on either side to form a contract or agreement binding on the government or the company; that no formal action upon them was taken by the board of directors; and that there was no proof that they were ever communicated to the directors, except as may be inferred from subsequent facts and circumstances mentioned; but that the company, through its directors and officers, promptly exerted itself, to its utmost power, to restore the roads to running order, and to that end co-operated with the government.

At the same time Gen. Rosecrans informed the secretary of war that the rebuilding of the bridges was 'essential, and a great military necessity,' in the defense of the state, and requested that Col. Myers should be authorized 'to have them rebuilt at once, the United States to be reimbursed the cost out of freight on the road.' The secretary referred the matter to the quartermaster general, who recommended that Gen. McCallum, superintendent of military roads, be directed to take the necessary measures immediately for that purpose. The secretary approved the recommendation, and Gen. McCallum was thereupon ordered to cause the bridges to be rebuilt by the quickest and surest means possible. It does not appear that the company had any notice of these communications, or of the order.

The bridge over the Osage river was destroyed on the fifth of October, 1864, by order of the officer commanding the central district of Missouri, acting under instructions from Gen. Rosecrans to 'use every means in his power to prevent the advance of the enemy.' The court finds that the destruction was ordered for that purpose, and that the exigency appeared to the officer, and in fact was, of the gravest character, and an imperative military necessity. The government rebuilt the bridge at an expense of $96,152.65; and this sum it seeks to charge against the company.

The bridge across the Moreau was also destroyed by command of the same officer, under the same military exigency. The company commenced its reconstruction, but, before it was completed, the work was washed away by a freshet in the river. The government afterwards rebuilt it at an expense of $30,801; and this sum it also § eks to charge against the company.

The two bridges across the Maramec were destroyed during the invasion, as already stated, but not by the forces of the United States. They were, however, rebuilt by the government as a military necessity, at an expense of $54,595.24; and this sum, also, it seeks to charge against the company. The court of claims allowed the costs of three of the bridges to be charged against the company, but rejected the charge for the fourth,—the one over the Osage river. The United States and the claimant both appealed from its judgment,—the claimant because the cost of the three bridges was allowed; the United States because the charge for one of the four was disallowed.

The cost of the four bridges rebuilt by the government amounted to $181,548.89. The question presented is whether the company is chargeable with their cost, assuming that there was no promise on its part, express or implied, to pay for them. That there was no express promise is clear. The representations and assurance at the conference called by Gen. Rosecrans to urge the rebuilding of the bridges were not intended or understood to constitute any contract; and it is so found, as above stated, by the court below. They were rebuilt by the government as a military necessity, to enable the Federal forces to carry on military operations, and not on any request of or contract with the company. As to the two bridges destroyed by the Federal forces, some of the officers of the company at that conference insisted that they should be rebuilt by the government without charge to the company, and, though they appeared to consider that those destroyed by the enemy should be rebuilt by the company, there was no action of the board of directors on the subject. What was said by them was merely an expression of their individual opinions, which were not...