Case Name: SPEAR AND LANG'S CASE, (2d.) Charles Spear et al. v. The United States
Court: United States Court of Claims
Jurisdiction: United States
Decision Date: 1869-12
Citations: 5 Ct. Cl. 197
Docket Number: 
Parties: SPEAR AND LANG’S CASE, (2d.) Charles Spear et al. v. The United States.
Judges: 
Reporter: United States Court of Claims Reports
Volume: 5
Pages: 197–215

Head Matter:
SPEAR AND LANG’S CASE, (2d.) Charles Spear et al. v. The United States.
On the Proofs.
The Maple Leaf is char ter'ed for the military service the 3d September, 1862, for one month, and as much longer as she may be required, at $550 per day. On the 22d Jane, 1863, by order of the Quartermaster General, the rale is reduced to $300 a day from April 22 d past, and to $250 a day after June 22rZ. On the 19í7¡, August a second charter-party is executed by both parties, to take effect from the ‘¿M June past, at $250. On the 30 th July the owners receive and receipt for payment at $300 a day to June 22d, hut no release for the balance is given. Ti is claimed by the owners that the second charter ivas exacted by duress.
No legal principle is enunciated in the opinion of tlie court htmt a majority of tlie judges agree that the claimants cannot recover.
Messrs. N. P. Ghipman, G. F. Pedlc, and T. J. Durant, for the claimants:
The original petition in this case is based upon a charter-party entered into by tlie claimants witli the United States for the services of the steamer Maple Leaf. The charter-party took effect the 1st day of September, 1862, and was at the rate of “five hundred and fifty dollars per day for each and every day the said vessel may be employed; the charter to continue in force for the full term of one month from the above date, and as much longer as the said vessel may be required by the United States War Department.”
She remained in service, faithfully performing the stipulations of this charter-party, until the 19tb day of August, 1863, when a new charter-party was made. While the original charter-party was in force, the Quartermaster General arbitrarily reduced the rates from $550 per day to $300 per day. This reduction began on the 22cl of April, 1863, and continued until the 22cl of June, 1863. From the 22d of June to the 19th of August a further reduction of $50 per day was made, reducing the amount originally agreed to be paid to $250 per day.
In preparing the case, that portion of the. reduction prior to June 22 was omitted in the original petition, the intention being to embrace the whole claim in two counts. The omission was supplied subsequently by an amended petition. The amended petition claims the amount of reduction from the 22d of April, 1863, until the 22d of June, 1863, and the original petition from that time to the 19th day of August.
The return of the Treasury Department shows the payments made in accordance with these several reductions, and for the time as stated, with the exception that the voucher paid in July shows that the reduction began May 3, 1863, instead of April 22, as alleged in the petition. The receipts there given are in the usual form, and are in full of the account, as stated, at the reduced rate. This form of receipt cannot be held under the decisions of this court to embrace within it more than is stated in tlie account, and, even under the circumstances of this case, if the receipt stated “ in full of all accounts for ser-Adces rendered by the steamer Maple Leaf,” we believe the receipt could be impeached, opened, or explained.
As to the claim for money Avithheld between May 3 and June 22, we conceive there is no room for argument.
The second claim, that is to say, from the 22d of June to the 19th of August, being the period between the time when the charter purports to have gone into effect and when it was actually executed, opens a Avide field of discussion..
The doctrine of duress of goods has been heretofore very elaborately and ably treated before this court, and we do not feel competent to add anything to that argument.
The Assistant Attorney General for the defendants:
On the, 3d day of September, 1862, the claimants chartered to the g'OA'ernment their steamer Maple Leaf, for one month from September 1, “ and as much longer as said vessel may be required by the United States War Department,” at $550 per day. On the 22d April, 1863, her rates Avere reduced to $300 per day, which sum was paid up to June 23, 1863. On the 19th day of August, 1863, a new charter-party was executed, at the rate of $250 per day, which, it was stipulated, should go into effect on the 22d day of June, 1863. This suit is brought to recover the difference between $300 and $550 per day from April 22 till June 22; and between $250 and $550 from the.latter date till the 19th of August.
I. The claimants acceded to the reduction.
On the 21st day of May, 1863, a circular letter was issued from the Quartermaster General’s office to the quartermasters at the various ports or posts Avhere Amssels Avere chartered, *in which, among other things, it was stated:
“ In the first operations along the coast, and in fitting out great expeditions, it became necessary to pay, for short times, prices much higher than would have been justifiable had it been foreseen that the Amssels would remain more than from thirty to sixty days under charter.
“ Many of these vessels have been retained until their earnings and their profits have been excessive.
11 Tour attention is called to this matter, and you are directed to take stringent measures to reduce these expenses by discharging all steamers whose rates appear to be excessive.
“ The department has invited proposals for charter and sale of steamers, proposing to replace the more costly vessels, and those whose rates are excessive, by others at lower rates.
, # * # * # *
“The ruling rates of these offers are from 35 to 50 cents per day per ton, registered measurement, for side-wheel steamers and propellers, and $3 50 to $4 per month for sailing vessels, per registered ton.”
This was sent to Captain McKim, at Boston, who had chartered the Maple Leaf, but it does not appear that he acted upon it; and it seems that the order to reduce her charter was specially issued from the office of the Quartermaster General. When issued it related back two months.
Had the claimants then refused to receive the reduced rates and demanded their vessel, they might have had a legal, if not a just claim against the government. But they did not. Getty testifies that they placed their claim in his hands for collection, to secure an advance of money made by his firm, and he and one of the claimants came on to Washington to collect. He gives somewhat in detail an account of the conversation he had with Colonel Clary in regard to the matter, much of which is improbable, and parts of which are positively contradicted by Colonel Clary in his deposition. The gist of it all is that he undertook to argue Clary into paying the enormous rates fixed by the charter, and he would not do it. He insisted upon a reduction to $300 per day, and that if the vessel was retained a new charter-party should be executed, with the accruing clause, at the rate of $250 per day, to take effect from June 22, 1863. Nothing was said about the vessel or about her discharge. Captain Spear, who was in Washington, does not seem to have visited the Quartermaster General’s office at all. The result, as summed up by Getty, was :
■“ Colonel Clary indorsed an order to Captain McKim, of Boston, to execute the new charter-party, dating back to June, and which was executed in August, as I suppose; at least that was the agreement made, and the order given in my presence.”
As to the receipt of the sum paid, Getty says : “ Finding that nothing else could be done, we agreed, to receive what he toas willing to give us, and consented to the execution of this new charter-party.”
II. The original charter-party was a fraud upon the United States. Under the rates fixed therein the claimants would realize a net profit exceeding the cost of the vessel in less than two months. Such a contract, made by a mere agent, will not be enforced by this court. (Beard’s Oase, 3 C. Gis. R., p. 122.)
III. The claimants received the compensation at the reduced rates and signed a receipt in full. This is prima facie evidence of a settlement and payment in full. (Kirhhami & Broion’s Case, 4 O. 01s. It, p. 226.) There is nothing appearing in this case to overthrow such a receipt. (Lawrence v. Selmyllcill Navigation Company, 4 Wash. 0. 0. R., p. 562.)
The pretense that the second charter-party was obtained from the claimants by duress of goods is not worth considering. The payments up to June 22, when the new charter-party took effect, were made on the 30th day of July, twenty days before the said charter-party was executed. The subsequent payments could not be paid or presented, because no certificates of service had been given.

Opinion:
Loking, J.,
delivered the opinion of the court:
The petitioner claims against the United States the sum of $32,650, alleged to be due on a charter-party, and the court finds the facts to be—
1. That Spear and Lang were the owners of the steamer Maple Leaf, and at Boston, on the 3d September', 1862, by a charter-party made between them and Captain McKim, assistant quartermaster, chartered the steamer to the United States for the term of one month, from September 1, 1862, and as much longer as she might be required by the United States War Department, at the rate of $550 per day, to be paid to said Spear and Lang by the United States.
2. On the 21st day of May, 1863, a circular letter was issued from the Quartermaster General's office to the quartermasters at the various ports or posts where vessels were chartered, in which, among other things, it was stated:
"In the first operations along the coast, and in fitting out great expedition's, it became necessary to pay, for short times, prices much higher than would have been justifiable had it been foreseen that tlie vessels would remain more than from thirty to sixty days under charter.
"Many of these vessels have been retained until their earnings and their profits have been excessive.
"Your attention is called to this matter, and you are directed to take stringent- measures to reduce these expenses by discharging all steamers whose rates appear to be excessive.
* # * #
"The department has invited proposals for charter and sale of steamers, proposing to replace the more costly vessels, and those whose rates are excessive, by others at lower rates.
* # #
"The ruling rates of these offers are from thirty-five to fifty •cents per day per -ton, registered measurement, for side-wheel steamers and propellers, and $3 50 to $4 per month for sailing vessels, per registered ton."
This was sent to Captain McKim, at Boston, who had chartered the "Maple Leaf."
3. On the 22d June, 1863, by an order of the Quartermaster -General, the rate of hire of the Maple Leaf was reduced to $300 per day from April 22, 1863, to June 22, 1863, and to $250 per day after June 22, 1863.
4. On the 19 bh August, 1863, by a second charter-party, made (in substitution of that first mentioned) by Charles Spear, agent of the owners, and said Captain McKim, assistant quartermaster, on the part of the United States, the Maple Leaf was chartered to the United States, the charter-party to go into effect .at 12 o'clock m., on the 22d June, 1863, and to continue in force -as long as the steamer might be required by the War Department.
5. The reductions of the rate of hire of said steamer above specified were made with the assent of her owners, and the -said charter, dated August 19, 1863, was made voluntarily by them, to continue said steamer in the service of the United States.
The said owners of the steamer Maple Leaf have been fully paid for the services and employment of said steamer, according to the reduced rates and the charter-party last made as above stated, and this suit is brought to recover the difference between $300 and $550 per day from April 22 till June 22,1863, and between $250 and $550 from the [latter date till the 19th August, 1863, when the steamer was discharged from the service of the United States.
It was contended for the petitioner—
1st. That the reductions of the hire of the steamer were unauthorized and made without their assent and against their protest.
2d. That the second charter-party, dated August 19, 1863, was obtained by duress.
The record shows that, on the 19th November, 1862, the Maple Leaf, then at Fort Monroe, was ordered by Lieutenant Colonel Thomas to report to Captain McKim, at Boston, to be discharged, unless otherwise ordered by him $ that the captain of the steamer did not obey said order, but went to Baltimore and returned with a cargo to Fort Monroe in December; and that her captain stated that he had not received the order to report to Captain McKim, at Boston, for discharge.
These facts are stated in an official letter, dated at Fort Monroe, June 10, 1863, addressed by Colonel Thomas to Captain McKim, at Boston, and recommending that the steamer be not paid for her services till her non-compliance with his order be satisfactorily explained, and then only at a reduced rate. This letter Captain McKim referred to Mr. Charles Spear, who made the following reply:
u Boston, June 15, 1863.
"Sir: To the letter of Colonel Thomas, quartermaster at Fortress Monroe, of the 10th, to you, I have to reply that I am very much surprised at its contents.
" The captains of all the steamers for which I am agent have positive instructions to obey fully, in every particular, the orders of the quartermaster in whose department they may be, and the captain of the Maple Leaf is a high-minded, honorable gentleman, brother of S. H. Dale, esq., the present mayor of the city of Bangor, and is well known in this city and vicinity, and is totally incapable of ignoring the order referred to, and I am fully convinced that it could not have been presented to him; and yet I cannot question the statement of Colonel Thomas, and I should be truly g'la'd, and will endeavor, to get at an explanation of the matter.
" Bespecting the price per day of the Maple Leaf, I have to say that,, at the time she was chartered, the price paid was not high, in comparison to other steamers, in view- of her capacity for passengers and freight and her qualities as a sea steamer, and I think he is in error when he says that steamers equal to her in every respect are under charter at from two to four hundred dollars per day. I do not question the fact that steamers, that will carry as many men as she will are now in the service at the latter price, but men are all they can carry, while the Maple Leaf will carry men and cargo also, and the steamers referred to are probably not as suitable to go outside of the Gapes as the Maple Leaf, which is adapted for any voyage.
" But, if it is fully decided that the charter of the Maple Leaf is too much, I am perfectly willing to agree to any equitable arrangement in the premises.
".Recently this steamer has been placed in the hands of Messrs. E. A. Souder & Co., of Philadelphia, and their Mr. Getty is well known by General Meigs; and either Mr. Getty or myself, or both, will meet you or Colonel Thomas, or General Meigs, and adjust this as above; and I do not for a moment entertain a doubt but that a very short interview will suffice to arrive at an equitable arrangement.
" I remain, dear sir, respectfully yours,
"CHAS. SPEAR,
11 Agent for Owners.
"Captain W. W. McKim,
"Assistant Quartermaster U. 8. A., Boston, Mass.
"A true copy:
"WM. W. McKIM,
"Captain and Assistant QuartermasterA
So that, as early .as June 15,-1863, Mr. Spear knew that a reduction of the original charter-party was required by the government, and he declared his readiness to concur in that and keep his steamer in the service, and proposed that the rate of reduction should be adjusted by him and Mr. Getty, in conference with the officers of the Quartermaster's Department.
On the 2211 June, 1863, Colonel Clary addressed to Captain McKim the following order:
"Quartermaster General's Oeeice,
" Washington, JO. C., June 22,-1863.
"Captain: The account of the steamer Maple Leaf for services from March 1 to March 16, 1863, both dates inclusive, at- $550 per clay, is herewith referred, to you for payment, in accordance with the evidences of service inclosed; also the account from February 1 to 28, 1863, inclusive, in like manner referred. You will please cause a new charter-party to be executed with the owners of the Maple Leaf, to take effect from June 22,1863, inclusive, at the reduced rate of $250 per day, using the latest form of charter-party, at a valuation of $50,000 and at a rate of profit of 33 per cent.
" Very respectfully, your obedient servant,
" By order:
"R. E. CLARY,
u Colonel and Quartermaster.
"Captain W. W. MoKim,
" Quartermaster, Boston, Massachusetts."
And on the same day, (June 22, 1863,) Colonel Clary addressed to C olonel Thomas, at Fort Monroe, where the Maple Leaf then was, the following order:
" QuakterMAstek Gekekal's Oeeice,
" Washington, I). C., June 22, 1863.
"Sir: The rate of the steamer Maple Leaf is hereby reduced to $300 per day from April 22, 1863, to June 22,1863, and still further reduced to $250 per day after June 22, 1863.
"You will please cause certificates of service to be made out for the time she has served tinder the old rates, tip to date, and forward' them to the proper parties iimnediately, so that the accounts may be adjusted as soon as possible.
" Respectfully, your obedient servant,
" By order:
"R. E. CLARY,
" Colonel and Quartermaster.
"Lieutenant Colonel C. W. Thohas,
"Assistant Quartermaster TT. S. A., Fort Monroe, Va."
And, on July 30, 1863, Mr. Spear receipted, at Boston, for the services of the steamer to June 22,1863, at $300 per day, according to the above-mentioned order of reduction. The owners knew then, therefore, of the rates of reduction ordered by the department.
In August, 1863, Mr. Spear and Mr. Getty, whose firm had advanced money to the owners on the charter-party, came to • Washington, and there, in various interviews with General Clary, running through, ten days, sought an adjustment with the government, in which they contended for the original charter price of $550 per day, anti labored for the best terms the5' could get; and Colonel Clary adhered to the order given, which was finally acceded to by the owners. Of this, Mr. Getty, who-conducted the negotiations for the owners with the privity of Mr. Spear, says:
" Finding that nothing else could be done, we agreed to receive what he was willing to give us, and consented to the execution of this new charter-party. I considered it the best terms these claimants could get. We had advanced money to-them upon this charter of the Maple Leaf as our own security,, and we wanted our money; therefore we advised them to accept the terms offered."
The case claimed by the petitioner rests on Mr. Getty's statements of what passed between him and General Clary in the ten days of negotiation, and General Clary denies Mr. Getty's-statements. These, therefore, are not proved, and they are improbable and, in every case but one, immaterial.
Mr. Getty states that General Clary refused to pay the amount-due and payable at the reduced rates unless the owners would execute the second charter-party. This would require strong-evidence, but it rests only on Mr. Getty's, and General Clary states expressly that the consent of the owners was obtained in all cases where the vessels were continued in the service.
And it is perfectly clear, on Mr. Getty's testimony, that lie-made no request for the discharge of the vessel, but avoided doing so, for he testifies that he told General Clary that the-proper procedure for the government, if it refused to pay the original charter price of $550 per day, was to discharge the vessel and then offer another charter-party. But, if the discharge of the vessel was a right of the owners, they had an election as to that, and it was for them to exercise it by a demand of her discharge, and they had already declared that they preferred her employment at a reduced rate.
And the result of the whole case is that the owners, by-Charles Spear's letter of 15th June, proposed to the government to leave their vessel in the service at a reduced rate, which they should adjust thereafter with the officers of the Quartermaster's Department; that afterward the rate, and nothing but the rate, was made by the owners the subject of a negotiation, and in that, without requiring the discharge of the vessel or any suggestion that they wished it, they agreed to and accepted the reduced rate, on which the vessel was continued in the service.
And our conclusion in this ease is on its facts, which are unlike those of any preceding case. •
And, on the whole case, it is adjudged that the defendants-are entitled to judgment and that the petition be dismissed.