United States v. Andrews Company

• Decision Date: 02 December 1907
• Docket Number: No. 44,44
• Citation: 28 S.Ct. 100,207 U.S. 229,52 L.Ed. 185
• Parties: UNITED STATES, Appt., v. R. P. ANDREWS & COMPANY
• Court: U.S. Supreme Court

207 U.S. 229

28 S.Ct. 100

52 L.Ed. 185

UNITED STATES, Appt.,

v R. P. ANDREWS & COMPANY.

No. 44.

Argued and submitted November 8, 11, 1907.

Decided December 2, 1907.

Assistant Attorney General Van Orsdel and Mr. Charles F. Kincheloe for appellant.

[Argument of Counsel from page 230 intentionally omitted] Mr. A. A. Hoehling, Jr., for appellee.

Mr. Justice White delivered the opinion of the court:

The United States appeals from a judgment against it for the contract price of paper purchased for use in the public printing office in the Philippine Islands. We summarize from the findings the status of the Philippine Islands at the time of the contract, stating besides the facts concerning the organization in the War Department of what is now known as the Bureau of Insular Affairs.

After the occupation of Manila, up to September 1, 1900, a military government prevailed. From September 1, 1900, to July, 1901, authority of a legislative nature was vested in the Philippine commission, under and subject to rules and regulations to be prescribed by the Secretary of War. From July 4, 1901, the executive authority as to civil affairs was transferred to the president of the Philippine commission under the title of civil governor, his authority being exercised under instructions from the President, subject to the direction and control of the Secretary of War. The Secretary of War organized the Division of Insular Affairs, which was given general charge of departmental business concerning the Philippine Islands. The organization of the division was confirmed and ratified by Congress on July 1, 1902 (32 Stat. at L. 712, chap. 1369, U. S. Comp. Stat. Supp. 1907, p. 23), and after that act the division became known as the Bureau of Insular Affairs of the War Department. The facts concerning the contract in controversy are these:

In May, 1901, the president of the Philippine commission telegraphed the Secretary of War, stating the necessity for a government printing office at Minlia, asking concerning the qualifications of a particular individual suggested for superintendent, and recommending the immediate purchase and shipment of an outfit for the proposed printing office. The finding expressly state, or by clear implication establish, the following:

In response to said cablegram, the Secretary of War directed the Insular Bureau of the War Department to purchase and forward to Manila the necessary machinery, equipment, and supplies for the establishment and operation of such printing office, and also to secure the services of a competent force of operators therefor; which duty was performed by said division.

On and prior to August 17, 1901, claimant was furnishing and supplying defendants divers papers and stationery, under contract, for use in various of its departments; and, thereupon, the Chief of the Division of Insular Affairs solicited claimant to furnish and supply, for use in said Philippine public printing office, being established at Manila, Philippine Islands, certain papers of described kinds, as follows:

(Circular D.)

War Department, Office of the Secretary,

Division of Insular Affairs,

Washington, D. C., August 17, 1901.

R. P. Andrews & co.,

627 Louisiana avenue, Washington, D. C.

Gentlemen:——

Under instructions from the Chief of Division of Insular Affairs I write you as follows:

Will you furnish, for the use of the Philippine public printing office, Manila, P. I., articles called for in the inclosures 1 and 2, f. o. b. Manila, at the price at which the same is now furnished to the government printing office, Washington, D. C., plus freight from New York; payment to be made from Philippine funds on invoice verification at Manila, P. I.

Inspection at Insular Division, where samples are to be sent.

When can supplies be shipped from port of departure _____?

Bills for supplies to be submitted, in duplicate, to the Chief of Division of Insular Affairs, for verification of prices at government printing office rates.

Copies of bills of lading from New York to be submitted, in duplicate, to Chief of Division of Insular Affairs for verification.

Very respectfully,

III.

In reply claimant, on August 28, 1901, submitted a proposal as follows:

Washington, D. C., August 28, 1901.

Chief of Division of Insular Affairs,

War Department, City.

Dear Sir:——

Replying to your favor of the 17th instant, circular D, we beg to advise you that we will furnish the different lots of paper called for in inclosures 1 and 2, which accompanied said circular, at the prices for which the same is now being furnished to the government printing office, Washington, D. C., plus freight rate from New York to Manila, P. L except lots. . . . All other lots mentioned we will, as stated above, furnish at the same prices that the same class of goods are being furnished to the government printing office, plus, as stated above, the freight from New York to Manila, P. I. Payment to be made from Philippine funds on invoice verification at Manila, P. I. Inspection at Insular Division, where samples are to be sent. Bills for supplies to be submitted in duplicate to the Chief of Division of Insular Affairs for verification of prices at government printing office rates. Copies of bills lading from New York to be submitted in duplicate to Chief of Division of Insular Affairs for verification.

We can have the goods ready for shipment October 1st to November 15th.

IV.

On the same date (August 28, 1901) said Chief of the Division of Insular Affairs wrote claimant as follows:

(Circular E.)

War Department, Office of the Secretary,

Division of Insular Affairs,

Washington, D. C., August 28, 1901.

R. P. Andrews & Co.,

627 Louisiana avenue, Washington, D. C.

Gentlemen:——

Please deliver f. o. b. Manila, P. I. (via Suez canal) the following:

Articles called for in inclosures 1 and 2.

To be shipped between October 20 and November 1, 1901.

Quality of goods furnished will be considered in making future orders.

Please acknowledge the receipt of this circular by return mail.

To be properly packed for export shipment.

Ship care Barber & Co., steamship agents, Pier B, Pennsylvania docks, Jersey City, N. J. (See note inclosed.)

Marked as follows:

No. ___, Governor W. H. Taft, Manila, P. I.

Contents, ___; weight, ___ Ibs.

For Philippine public printing plant.

As per your agreement in your letter dated August 28, 1901, now on file in this office.

Very respectfully,

The inclosures marked 1 and 2, referred to in this letter, were statements tabulating the quantity and quality of paper to be furnished. The note referred to and inclosed in the letter was the following: 'Note.—(Care Barber & Company, steamship agents, Pier B, Pennsylvania docks, jersey City, N. J.)

'A special arrangement has been made so that, after f. o. b. delivery, as above, at Jersey City, the freight rate for the transportation of these supplies and the equipment of the Manila printing office will not be higher than $11.05 per ton (dead weight) and possibly less. Rate for measurement freight to be made on a correspondingly low basis, in accordance with the space occupied. Therefore the Philippine government will, upon invoice verfication at Manila, reimburse you for the cost of this ocean shipment.'

Before the paper was shipped, the Division of Insular Affairs gave further instructions as follows: 'Note.—(Care Barber & Company, East Central Pier, Brooklyn, N. Y.)

'A special arrangement has been made so that, after f. o. b. delivery, as above, at Brooklyn, the freight rate for the transportation of the supplies and equipment of the Manila printing office will not be higher than $11.05 per ton (dead weight) and posibly less. Rate for measurement freight to be made on a correspondingly low basis, in accordance with the space occupied. Therefore the Philippine government will, upon invoice verification at Manila, reimburse you for the cost of this ocean shipment.'

The findings relating to the value of the paper, its forwarding to and arrival of a part at Manila, and the subsequent controversy between Andrews & Company and the government concerning the same, show the following to be the case:

In compliance with the directions, Andrews & Company packed the paper for export shipment, directing it to Governor W. H. Taft, Manila, Philippine Islands, in care of Barber & Company, East Central Pier, Brooklyn, New York, and prepaid the freight. The quoted value of the paper was $3,087.75. The freight charges from New York to Manila were $196.35, which, together with $1 for clearance papers, prepaid by Andrews & Company, brought the total purchase or invoice price to $3,285.10. When the paper was delivered to Barber & Company, Andrews & Company took triplicate bills of lading, consigning the paper to Governor W. H. Taft or his assigns, Manila, Philippine Islands, and delivered the duplicate bills of lading to the Chief of Division of Insular Affairs, in accordance with the instructions given. Barber & Company forwarded the paper by the steamship Indrasamaha. When the vessel arrived at Singapore, it was found that a portion of her cago, including the consignment of paper, was badly damaged by water. Some of the paper was condemned by a board of survey convened by the agents of the ship, and was sold in Singapore. The remainder was repacked and forwarded to Manila. When it arrived it was so damaged as to render it unfit for use. The consignee (Governor Taft) refused to accept it, and a committee, which was appointed by him as civil governor, recommended that the paper be stored in a warehouse of the Philippine government until instructions were received from Andrews & Company, who had no agent in the islands. Thereupon the public printer of the Philippine Islands wrote Andrews & Company, informing them of the facts just stated, and asking instructions as to what they wished done, and on May 31, 1902, the Division of Insular Affairs also wrote Andrews & Company on the...