Jaedicke v. United States

• Decision Date: 14 February 1898
• Docket Number: 937.
• Citation: 85 F. 372
• Parties: JAEDICKE et al. v. UNITED STATES.
• Court: U.S. Court of Appeals — Eighth Circuit

85 F. 372

JAEDICKE et al. v. UNITED STATES.

No. 937.

United States Court of Appeals, Eighth Circuit.

February 14, 1898

David Overmyer (Eugene Hagan, on the brief), for plaintiffs in error.

I. E Lambert, for the United States.

Before SANBORN and THAYER, Circuit Judges, and PHILIPS, District Judge.

SANBORN Circuit Judge.

August Jaedicke, one of the plaintiffs in error, was the postmaster of the United States at Hanover, in the state of Kansas, from May 21, 1889, until April 11, 1892, when he resigned.

The other plaintiffs in error were the sureties on his bond. On April 19, 1895, the United States brought an action on this bond, and after a jury trial obtained a judgment of $581.05 which this writ of error was sued out to reverse. Jaedicke was a postmaster of the fourth class, and during his term of service his compensation consisted of box rents collected and certain commissions on postage stamps canceled upon matter actually mailed at his office. He made quarterly returns during his term of office, and his accounts were finally allowed and settled, and a balance of $76.30 was paid to him upon this final settlement, on August 30, 1893. On February 7, 1894, the postmaster general made this order:

'Postoffice Department-- Office of the Postmaster General.

'Washington, D.C., February 7, 1894.

'Order No. 37. Being satisfied that August Jaedicke, last postmaster at Hanover, Washington Co., Kansas, has made false returns of business in the post office at said place during the period from May 21, 1889, to March 31, 1892, thereby increasing his compensation beyond the amount he would justly have been entitled to have by law; now, in the exercise of the discretion conferred by the act of congress entitled 'An act making appropriations for the service of the postoffice department for the fiscal year ended June 30, 1879, and for other purposes,' approved June 16, 1878 (section 1, c. 259, p. 186, Supp. Rev. St.), I hereby withhold commissions on the returns aforesaid, and allow as compensation (in place of such commissions and in addition to box rents and commissions on sales of waste paper, twine, etc.), deemed by me under the circumstances to be reasonable, during the period aforesaid, at the rate of $145 a quarter from May 21, 1889, to March 31, 1892, and the auditor is requested to adjust his accounts accordingly.

'(Seal.)

W. S. Bissell, Postmaster General.'

The auditor complied with the order, and readjusted the accounts of Jaedicke for the entire term of his office on the basis prescribed thereby. The result of this restatement of his accounts was to bring him into debt to the government in the sum of $527.49. There was no controversy over the facts we have recited, but the evidence was contradictory as to the falsification of the returns and as to the amount of loss which the government had sustained thereby, if there was any falsification. The theory of the action was not that the government was entitled to recover upon the bond the amount which it had actually lost through the delinquency of the postmaster, but that it was entitled to recover the amount of $527.49 and interest, upon the adjudication and order of the postmaster general, regardless of the loss it actually sustained. There are many errors assigned, but the vital one is that this theory was wrong, and that the court, which adopted it, erred when it instructed the jury as follows:

If Mr. Jaedicke did make false returns with a view to increase his compensation, then the postmaster general had the right to take the action he did in this case, and fix the compensation of the defendant August Jaedicke. So you have to determine, gentlemen of the jury, that fact, from the evidence in this case. Were these returns made by Mr. Jaedicke correct and true? If so, then he is entitled to a verdict in his favor. If you find, however, that he made false returns, with the purpose of increasing his compensation, then the postmaster general, upon being satisfied of that fact, had the right to fix the compensation which he did in this case, and the government is entitled to a verdict for the amount that it claims. You do not have to go into and take an accurate account between the government and the defendant August Jaedicke, and strike a balance; but you do have to go into the evidence far enough to ascertain the one fact, whether or not this defendant made false returns of his business. You do not have to run his accounts through, if you find he made false returns, to ascertain whether the government was defrauded out of the five hundred and odd dollars; but if he made false returns of his business, with the intention of increasing his compensation, then the postmaster general had the right to act, and his action is justified by law, and we are not here to question it.'

The acts of congress which are worthy of consideration in determining the soundness of this instruction are:

'The sixth auditor shall receive all accounts arising in the postoffice department, or relative thereto, with the vouchers necessary to a correct adjustment thereof, and shall audit and settle the same and certify the balances thereon to the postmaster general. He shall keep and preserve all accounts and vouchers after settlement. He shall close the account of the department quarterly, and transmit to the secretary of the treasury quarterly statements of its receipts, and expenditures. * * * ' Act March 3, 1875, c. 128, Sec. 4 (18 Stat. 343); Rev. St. Sec. 277, subd. 7, p. 47.

'That in any case where the postmaster general shall be satisfied that a postmaster has made a false return of business, it shall be within his discretion to withhold commissions on such returns, and to allow any compensation that under the circumstances he may deem reasonable. ' Act June 17, 1878 (20 Stat. 140, 141); Supp. Rev. St. p. 186, c. 259, Sec. 1.

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