The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-08-14
Our 81 eci.I Washington Dsspstch.

Our 81 ecial Washington Despatch,
DECISION or THE FIRST COMPTROLLER OF The TaEA-
srKY IN THE CASE OF THE NRw ORLEANS, VERA
CRUZ, ACAPULCO AND SAN FRANCISCO MAIL con-
TRACT-ILLsEss OF SECRETARY cAss, ETC.
WASHINGTON, August Is, 1853.
Governor Medill, First Comptroller OF the Trea-
sury has just rendered his decision in the celebrated
case of Carmick and Ramsey. The chief points in
the case are as folows:-During the latter part Of
President Flmore's administration weekly mail
was carried between New Orleans and Vera Cruz
by the Mexican Ocean and Inland Mail Transports
ton Company. A project was set on foot of making
road across Mexico, and of continuing the said
line from Vera Cruz, via Acapulco, on the Pacific
side, TO San Francisco. The aid of the Post Office
Department was invoked; but there was no appro-
pration, and the expense OF the Pacific mails were
already severe upon the treasury. On the sd of
March, 1885, however the very last day of the ad-
ministration, Postmaster General Hubbard entered
into written contract with Carmick and Ramsey
for the transportation OF semimonthly mail
between Vera Cruz and San Francisco, upon the
the above named route for four years. at an annual
compensation of four hundred and twenty four thou
sand dollars. Not knowing that II would meet the
appreciation Of his successor, or that of Congress.
and not wishing to cmbarass either the one or the
other unnecessarily il was expressly stipulated that
the term for which the contract was TO run was not
to commence until the same should be approved by
Congress, and the necessary appropriation made to
carry II into effect and that until such approval the
said contract was to have force or validity what
ever any more than il tho same had never been
made. Carmiek and Ramsey at once turned the
contract over to the Mexican Ocean and Inland Mail
Transportation Company, who were anxious TO ex-
ictd heir line as contemplated, and who proceeded
70 prepare and stock the road between Vera Cruz
aud Acapulco without waiting for the action of Con
rress az required by the contract. At the meeting
Of the ensuing Congress Mr.. Campbell, who had
ceeded to the Office ofs osmasier Central expressed
some disapprohation OF The contract In his annual
report on the grounds Of the probable impractical.
bty Of the route for mail purposes and the very large
amount il would draw from the treasury to the pre-
JUDGE of other sections Of the country ia need
of such facilities. Congress took no action on the
subject. The contract was neitherapproved nor any
appropriation made TO carry out ts provisions. The
project OF opening a road and running line be.
tween Vera Cruz and Acapulco was abandoned, and
Carmick and Ramsey the contractors, memoiazcd
Congress for damages, on the ground tina, they were
greatly injured by the alleged interference OF the
Postmaster General whose course in relation 10 the
the contract.
Congress, on the 10th Of August. 1856, two
days before the adjournment Of the session,
referred the subject to the First Comptrol.
Ter Of the Treasury, to adjust the damages
due TO Carmick and Ramsey on account Of
the ahrugation by the Postmaster General of their
contract TO carry the mail on the Vera Cruz, AGA
pulco and San Francisco route, and to adiudge 10
them according to the principles of law equity and
Justice the amount so found due" The contractors
presented pro lorna account, showing that they
expected IN clear tbrty.one thousand dollars per
month on the said contemplated route from the
transportation Of passengers and property alone,
over and above the expenses Of maintaining IL. and
carry on the same without any reference to the con-
tract price fer the mail, and fled a statement of
their alleged damagesat something over one million
eight hundred thousand dollars
The case has been argued by some of the ablest
counsel In the country and the Comptroller. aftor
careful examination Of these elaborate arguments has
delivered his written opinion at great length deciding
that the contract merely conditional and that the
contingency upon which it was to 60 into effect never
having occurred il not subject to abrogation by
the Postmaster General or any one else; that he
finds nothing in the conduct Of the late Postmaster
General that IL inconsistent with proper discharge
Of his official duties or which 30 violates any one Of
the provisions Of said contract as TO render the
government liable in dsmsges that the contract has
never been abroested, annued or broken but stands
as it always stood, subject TO the approval Of Con
gr,ss, as il originally agreed II should be; and,
therefore, that there are no damages due to the con
tractors for the abrogatop Of the same IL Is under