Swift Courtney Beecher Co v. United States

• Decision Date: 17 March 1884
• Parties: SWIFT & COURTNEY & BEECHER CO. v. UNITED STATES
• Court: U.S. Supreme Court

111 U.S. 22

4 S.Ct. 244

28 L.Ed. 341

SWIFT & COURTNEY & BEECHER CO. v. UNITED STATES.

March 17, 1884.

[Syllabus from pages 22-23 intentionally omitted]

[Statement of Case from pages 23-24 intentionally omitted] John W. Douglass and Saml. Shellabarger, for appellant.

Sol. Gen. Phillips, for appellee.

MATTHEWS, J.

On a former appeal in this case a judgment of the court of claims dismissing the claimant's petition on demurrer was reversed. Swift Co. v. U. S. 105 U. S. 691. It was then held that the right construction of the internal revenue acts—act of July 1, 1862, c. 119, § 102, (12 St. 477;) act of March 3, 1863, c. 74, (12 St. 714;) act of June 30, 1864, c. 173, (13 St. 294, 302;) act of July 14, 1870, c. 255, § 4, (16 St. 257)—required the payment of the commission allowed to dealers in proprietary articles purchasing stamps made from their own dies and for their own use, to be made in money, calculated at the rate of 10 per cent. upon the whole amount of stamps furnished, and not in stamps at their face value calculated upon the amount of money paid. In response to a suggestion in argument by the solicitor general we now repeat the conclusion then announced. We had no doubt upon the point at the time; we have none now. The distinction was then pointed out between the rule applicable to the sale of other adhesive stamps and those sold to proprietors of articles named Schedule C, made from their own dies. In the former, the commissioner of internal revenue had a discretion to fix the rate of the commission so as not to exceed 5 per cent., and in exercising that discretion could make the commission payable in stamps as an element in the rate itself. As to the latter, no such discretion was given. The statute fixed the rate of the commission absolutely. The practice of the bureau confused the two cases and ignored the distinction between them. We do not perceive how the substitution of the word 'commission' in the act of 1863 for the word 'discount' in the proviso to section 102 of the act of 1862 affects the question; for the latter obviously refers to a sum to be deducted from the money paid for the stamps and not from the stamps sold, while the former equally denotes a sum to be paid to the purchaser on a purchase of stamps at par, both being calculated as a percentage upon the amount of the purchase money, and the necessary implication as to both being that they are to be paid in money. However the words in some applications may differ in verbal meaning, they represent in the transactions contemplated by these statutes an indentical thing.

The present appeal is from a decree rendered in favor of the United States upon a finding of facts upon issue joined, and presents two questions: First, whether the course of dealing between the parties now precludes the appellant from insisting upon his statutory right to require payment of his commissions in money instead of stamps; and, second, whether, if not, part of his claim did not accrue more than six years before suit brought, so as to be barred by the statute of limitations. On the former appeal, we decided that the course of dealing set forth in the petition, which was admitted by the demurrer, did not bar the claimant's right to recover; holding that it did not appear on the face of the petition that the appellant voluntarily accepted payment of his commissions in stamps at par, instead of money, nor that he was willing to waive his right to be paid in that way; and that 'it would be incumbent on the government, in order to deprive him of his statutory right, not only to show facts from which an agreement to do so'—that is an agreement to waive his statutory right—'might be inferred, but an actual settlement, based upon such an understanding.'

The decree brought up by the present appeal proceeds upon the basis that the facts as found by the court of claims establish such an agreement and such a settlement. The course of dealing found to exist and to justify this conclusion may be briefly but sufficiently stated to have been as follows: The appellant gave the bonds from time to time necessary under the statute to entitle it to 60 days' credit on its purchases of stamps. The condition of this bond was that the claimant should, on or before the tenth day of each month, make a statement of its account upon a form prescribed by the internal revenue bureau, showing the balance due at the commencement of the month, the amount of stamps received, the amount of money remitted by it during the month, and the balance due from it at the close of the month next preceding; and also that the company should pay all sums of money it might own the United States for stamps delivered or forwarded to it, according to its request or order, within the time prescribed for payment for the same according to law; that is, for each purchase within 60 days from the delivery of the stamps. Each purchase was upon a separate written order, specifying the amount desired; for example, $3,000 worth of match stamps. The commissioner thereupon forwarded stamps of the face value of $3,300, with a letter stating that they were in satisfaction of the order referred to, and inclosing a receipt on a blank form, but filled up, except date and signature, which was an acknowledgement of the receipt of the specified amount of stamps in satisfaction of the order. The receipt was signed by the claimant and returned. The claimant from time to time made remittances of money in authorized certificates of deposit, in sums to suit its convenience, for credit generally, and received in reply an acknowledgment stating that credit had accordingly been given on the books of the internal revenue office on account of adhesive stamps; for instance, by certificate of deposit, $2,500; commission at 10 per cent., $250; total, $2,750; and authorizing the claimant to take credit therefor on the prescribed form for the monthly account-current. These accounts were made out by the claimant monthly on blank forms prescribed and furnished by the commissioner, in which the United States were debited with all items of money remitted, and with commissions calculated on each remittance at 10 per cent., and credited with balance from previous month and stamps received on order in the interval, and with the balance due the United States. This account way by a memorandum at the foot stated to be correct, complete, and true, and signed by the claimant. These returns, with corresponding statements by the commissioner, were settled and adjusted by the accounting officers of the treasury department every quarter, and notice of the settlement given to the claimant. The remittances were so made that, while not corresponding to any particular order for stamps, they nevertheless covered all stamps the orders for which had been given 60 days or more previously, so that the claimant was always indebted to the United States for all stamps received within the past 60 days, but not for any...