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United States v. Brown, 50 U.S. 487 (1850)
United States v. Brown, 50 U.S. 487 (1850)
487
9 How. 487
13 L.Ed. 228
THESE two cases were merely branches of a single case which was tried
in the Circuit Court of the United States for the District of Columbia,
holden in and for the County of Washington.
The suit was instituted by the United States against Obadiah B. Brown,
upon an account, two items only of which were disputed. Upon one of
these items the instruction of the court to the jury was unfavorable to
Brown, and he took a bill of exceptions to it. This constituted the first
case. Upon the second item, the instruction was unfavorable to the United
States, and they excepted.
The account upon which the suit was brought was as follows, viz.:
Obadiah B. Brown, late Treasurer Post-Office Department, in account
with the United States.
DR. CR.
1835. 1845.
Jan. 27. To cash, $2,500.00 Mar. 31. By amount of his bill, dated 14
Feb. 18. " cash, 802.59 February, 1835, No. 460, paid
" 19. " cash, 2,088.61 sundry persons for services
April 10. " cash, 1,452.00 in Post-Office Department, $ 802.59
June 26. By amount paid sundry persons
$2,088.61, the charge of the Circuit Court was correct, and fell within the
ruling of this court in the case of The United States v. The Bank of the
Metropolis, 15 Peters, 377, 400, 401; and with respect to the item of
$2,500, they contended,
1. The services rendered by Mr. Brown, and for which he claimed this
compensation, were not such as were ordinarily attached to the duties of
the office held by him.
2. They were rendered at the instance of the government, and he was
obliged, under the circumstances, to perform the labor, and assume the
responsibility necessary to execute that service.
3. The was entitled to an equitable allowance for such extra service, to be
graduated by the amount paid for like services under similar
circumstances.
4. The Department had paid for like services, under similar circumstances,
more than was demanded by him.
And to sustain these propositions they relied on The United States v.
Macdaniel, 7 Peters, 1; The United States v. Ripley, 7 Peters, 25, 26; The
United States v. Fillebrown, 7 Peters, 44.
Mr. Justice DANIEL delivered the opinion of the court.
This case is brought before us upon writs of error to the Circuit Court of the
United States for the District of Columbia, holden for the County of
Washington.
The facts of this case, and the questions of law arising therefrom, will appear in
the following statement of the proceedings in the Circuit Court.
In the year 1839 the United States instituted an action on the case against the
defendant in error, to recover of him the sum of $4,588.61, in obedience to the
directions of the seventeenth section of the act of Congress of July 2, 1836 (5
Statutes at Large, 83), which declares, 'That in all cases where any sum or sums
of money have been paid out of the funds of the Post-Office Department to any
individual or individuals under pretence that service has been performed
therefor, when in fact such service has not been performed, or by way of
additional allowance for increased service actually rendered when the
additional allowance exceeds the sum which, by the provisions of the law,
might rightfully have been allowed therefor, and in all other cases where
moneys of the department have been paid over to any person in consequence of
fraudulent representations, or by mistake, collusion, or misconduct of any
officer or clerk of the Department, it shall be the duty of the PostmasterGeneral to cause suit to be brought in the name of the United States of America
to recover back the same, or the excess, as the case may be, with interest
thereon.' The declaration counted upon an insimul computassent, upon money
paid, upon money lent and advanced, and upon money had and received. The
account exhibiting the claim of the United States consisted of four items, and is
in the following form.
4
Obadiah
B. Brown, late Treasurer Post-Office Department, in account with the
United States.
5
DR. CR.
1835. 1845.
Jan. 27. To cash, $2,500.00 Mar. 31. By amount of his bill, dated 14
Feb. 18. " cash, 802.59 February, 1835, No. 460, paid
10
13
'I certify that the foregoing is a true statement of the account of Obadiah B.
13
14
15
16
The second and fourth items of this account were extinguished by credits equal
to their amount; the first and third items were alone contended for by the
United States. The jury found a verdict for the plaintiffs for the first item, and
rejected the third, under the instruction of the Circuit Court.
17
At the trial, bills of exception to the rulings of the court were sealed, at the
instance of both the plaintiffs and the defendant, and a writ of error is
prosecuted by either party in this court.
18
The proofs set forth in the bills of exception, and the rulings of the Circuit
Court upon the prayers appended to those bills, are made a part of this
statement, so far as is necessary to present the questions brought up for review.
19
'The plaintiffs, to sustain the issues joined on their part, and to establish their
right to recover the third item in the account, of $2,088.61, gave evidence by
competent testimony, that, on the 3d of May, 1833, the defendant made a
private deposit of his own funds in the Bank of Maryland, of the sum of $2,000,
bearing interest at the rate of five per centum per annum, and received a
certificate therefor. That the defendant was at the time of said deposit, and
continued until the lst of February, 1835, to be, the chief clerk and treasurer of
the Post-Office Department. That on the 5th of June, 1833, the Post-Office
Department borrowed of the Bank of Maryland $50,000, payable at nine and
twelve months, and gave to the said bank two certificates of $25,000 each, in
acknowledgment of this loan. These certificates were signed by the defendant,
as treasurer of the Department. That on the 22d of June, 1833, the Bank of
Maryland borrowed of the Union Bank of Maryland $50,000, and deposited
said loan certificates as collateral security therefor.
20
'That on the 22d of March, 1834, the Bank of Maryland failed, and the PostOffice Department, shortly after, knew of that fact. That on the 22d of March,
1834, the Bank of Maryland made a general assignment to John B. Morris and
Richard W. Gill, as trustees for the benefit of its creditors. And that both the
Post-Office Department and defendant were notified of said assignment to the
Union Bank of the post-office certificates, as early as the 8th of April, 1834.
21
22
23
24
"J. B. MORRIS,
25
R. W. GILL, Trustees.
26
27
'And said certificate, with the indorsement of the defendant Brown, and of said
Morris and Gill, was then by him presented to the Bank of Maryland by said
Williams, acting as aforesaid, and the said certificate was then and by it
cancelled, and a credit given for the amount, with the interest up to 22d March,
1834, to the Post-Office Department, being the amount of two thousand and
eighty-eight dollars sixty-one cents: this credit was given on the 9th of
September, 1834, and in a day or two after, on the receipt of the account
showing said credit, corresponding entries were made on the books of the
Department, charging said bank, in general account, with said sum of two
thousand and eighty-eight dollars sixty-one cents, and crediting O. B. Brown,
Treasurer, &c., with the like sum.' That early in February, 1835, the defendant
retired from his office in the Post-Office Department, and afterwards, on the
19th of February, 1835, the Postmaster-General caused a requisition to be made
out in favor of the defendant for the sum of $2,088.61; and upon this requisition
a corresponding check was drawn, payable to his order, for the like amount,
which, being indorsed by him, was duly paid, which sum so paid is that now
sought to be recovered. That on or about the 5th of December, 1836, an
arrangement was made between the said Union Bank and the then PostmasterGeneral, under which the defendant was recharged with the sum of $2,088.61,
and the Union Bank thereupon gave the bond of indemnity in the following
words.
28
"Know all men by these presents, that we, the President and Directors of the
Union Bank of Maryland, and Robert Mickle, of the State of Maryland, are
held and firmly bound unto the United States in the full and just sum of four
thousand dollars, current money of the United States, to be paid to the said
United States; to which payment, well and truly to be made, we bind ourselves
and each of us, firmly and severally, by these presents. Sealed with our seals,
and dated this 5th day of December, in the year 1836.
29
30
"Now, the condition of the above obligation is such, that, if the validity of said
set-off should in the said suit be sustained by a judicial decision, and the said
Union Bank shall thereupon, on demand, fail to repay the said sum of two
thousand and eighty-eight 61/100 dollars, with legal interest thereon from the
time they received the same, the above obligation to be in full force; otherwise
to be void.
31
32
R. MICKLE, [SEAL.]
33
34
'Whereupon the plaintiffs closed their testimony; and the defendant prayed the
court to instruct the jury that, on the evidence aforesaid, if believed by the jury,
the plaintiffs are not entitled to recover the said item of $2,088.61.
35
'And the court, being of the opinion that, by the evidence aforesaid, it appeared
35
'And the court, being of the opinion that, by the evidence aforesaid, it appeared
that the former Postmaster-General (Barry) had, within the scope of his official
authority, and with full possession of the facts involved in the case, adjudicated
the question of the right of the defendant to receive the said item of $2,088.61,
and, under the said adjudication, the same had been paid to the defendant, and
that this court has no authority to review and reverse the said adjudication for
errors of law therein, and that, from the evidence aforesaid, the jury cannot
infer mistake of fact, collusion, or misconduct of the said Postmaster-General,
gave the instruction as prayed, to which instruction, as given, the plaintiffs
excepted.
36
'The defendant having admitted the receipt by him of the sum of $2,500, as
charged in plaintiffs' account, offered and read in evidence an account
presented by him to the Department, claiming sundry allowances as for
commission for the disbursement of sundry sums made by him from the
contingent fund of the Post-Office Department, and for the like commissions
on the sum of $190,000, being the amount of sundry loans negotiated by him,
at the request of the Postmaster-General, for the use of said Department, as
charged and claimed in said account, and then gave evidence tending to prove,
by credible and competent witnesses, that he, the said defendant, while chief
clerk of the Post-Office Department, was employed by the said PostmasterGeneral to negotiate said loans; that he faithfully performed that duty, and did
negotiate the several loans for the sums with the parties, and at the times
mentioned in the items of charge in his account. He further gave testimony
tending to show that no loans were ever made and negotiated by or for the use
of the Department, except during the period when Major Barry held the office
of Postmaster-General, and that no other officer or clerk attached to the General
Post-Office had ever been employed in the negotiation of any loans for the use
of said Department; that during the same period of time another person, viz.
Samuel L. Governeur, then postmaster at New York, was, in like manner,
employed to negotiate similar loans for the use of said Department, as a special
agent; that loans were thus negotiated by said Governeur, as such special agent,
sometimes at a very high premium, on one occacasion paying for the same at
the rate of three per cent. per month, besides collateral advantages to the lender;
that for the loans thus negotiated by said Governeur he claimed and was
allowed five per cent. commission when he lent his own personal
responsibility, and two and a half per cent. when he incurred no responsibility;
and these commissions were allowed and credited him by the Department in the
settlement of his accounts; that the defendant, in the negotiations intrusted to
him, went personally to Baltimore and Philadelphia, where the same were
conducted and effected, and that he has never received any remuneration for his
services, or for his expenses in attending to said business.
37
38
'And the defendant further gave evidence tending to prove, that the arrangement
made for the overdrawing of the $50,000, made by the First Assistant
Postmaster-General, was performed through the instrumentality of an agent in
New York, acting under instructions from said assistant; that it was not
regarded as a loan, but as an agreement, upon the promise of regular deposits,
sometimes leaving large balances in favor of the government to meet and pay
the drafts of the Department, in case no funds belonging to it were at the time in
deposit, to the extent of $50,000; that the defendant had made similar
arrangements for the Department with other banks, at different times, to the
amount of $500,000, and had never claimed compensation for this as an extra
service, or received any such compensation therefor.
40
'Upon the whole of the evidence, so given by the parties respectively, the
counsel for the United States prayed the court to instruct the jury as follows,
viz.:That on the whole of said evidence, if believed by the jury, the plaintiffs
are entitled to recover the said sum of $2,500, and that defendant is not entitled
to set off against that item any value of his services in negotiating said loans, or
for the disbursement of the contingent fund, as claimed by him in his said
account. To the giving of which instruction, the defendant, by his counsel,
objected, but the court overruled the objection, and gave the instruction as
prayed; to which ruling of the court the defendant excepted.'
41
The inquiries arising upon this record involve, to some extent, an examination
of the powers and duties of the Postmaster-General in the administration of his
office, and embrace also a construction of the seventeenth section of the statute
of June 2, 1835, with respect to the directions to the Postmaster-General to
prosecute for any of the delinquencies or misfeasances enumerated in that
section; they imply, moreover, an examination on the part of this court as to
how far the acts of the defendant below, as characterized by the proofs on the
record, fall within either category of a payment out of the funds of the Post-
Office Department under pretence of services which have not been performed,
or of an allowance for services actually performed, exceeding the
compensation permitted by law,or of money paid over to a person in
consequence of fraudulent representations,or by mistake, or collusion, or
misconduct of any officer or clerk of the Department.
42
43
Under the principles here assumed, and which are deemed by this court to be
undeniable, let us look more nearly at this payment of $2,088.61, made by
order of the Postmaster-General, to the defendant, and at the circumstances
under which it was made, in order to ascertain how far such payment, and the
retention of the amount by the defendant, are warranted by these principles. It
should here be borne in mind, that for some time previously, and to a period of
nearly eleven months after the failure of the Bank of Maryland, the defendant
was not only the chief clerk, but the treasurer, of the Post-Office Department.
He was, therefore, necessarily acquainted, not only with the internal details of
the Department, and clothed with the control of its pecuniary operations, but
was also acquainted with the condition and character of those from whom loans
to the Department were obtained; indeed, he assumes much credit to himself for
this knowledge, and his acts based upon it, and makes them in part the
foundation of his claim for commissions on the moneys he had negotiated. But
in addition to this implication, it is stated in the proofs that the Post-Office
Department was informed, in March, 1834, of the failure of the Bank of
Maryland; and that as early as the 8th of April following, both the Department
and the defendant were notified of the assignment to the Union Bank of the
Post-Office certificates for $50,000. However possible it may be, that the head
failure of that bank, and the consequent worthlessness of the certificate held by
him, and the injustice and fraud of the contrivance by which he palmed that
certificate upon the government, and obtained thereby the amount of it at par.
In this view of the transaction, we consider the payment to the defendant of the
sum of $2,088.61, by direction of the Postmaster-General, as illegal and void,
and the case of the defendant as coming regularly within the meaning of the
provision, which is mandatory in directing proceedings like the present for the
recovery of moneys of the Department that have been paid over to any person
in consequence of fraudulent representations, or by mistake or misconduct of
any officer or clerk of the Department, and therefore as rendering the defendant
liable to refund the amount so paid to him, with interest thereon.
44
In the decision of the Circuit Court upon the prayer to the second bill of
exceptions, sealed at the instance of the defendant below, this court can
perceive no error. Upon adverting to the printed rules and regulations for the
government of the Post-Office Department adopted on the 4th of March, 1833,
and referred to in the defendant's exception, we find in the eighth rule the
following provision:'The third division will be that of finance, under the
superintendence of the chief clerk, Obadiah B. Brown, who shall be treasurer of
the Department. There shall be under his control the book-keeper's, the
solicitor's office, and the pay office.'
45
46
But beyond this general provision, contained in rule eighth of the Post-Office
regulations, it will be found on examination that the whole of the remaining
rules, extending to number twenty-four, are made up of a detail of duties to be
performed with respect to receipts, deposits of money, payments and
disbursements, by this treasurer, so constituted in virtue of his office of chief
clerk; for which last office he received a stated salary. By what course of
reasoning, then, it could be shown that the peculiar or appropriate duties of this
officer were not his duties, but were performed by him in lieu of some other
agent, and became, therefore, the foundation for extra compensation, this court
This cause came on to be heard on the transcript of the record from the Circuit
Court of the United States for the District of Columbia, holden in and for the
County of Washington, and was argued by counsel. On consideration whereof,
it is now here ordered and adjudged by this court, that the judgment of the said
Circuit Court in this cause be, and the same is hereby, reversed, and that this
cause be, and the same is hereby, remanded to the said Circuit Court, with
directions to award a venire facias de novo, and for such further proceedings to
be had therein as may be in conformity to the opinion of this court, and as to
law and justice may appertain.