Case: WALTER J. WARDER v. THE UNITED STATES
Abbreviation: Warder v. United States
Decision Date: 1890-03-03
Docket Number: No. 14842
Citation: 25 Ct. Cl. 159
Volume: 25
Reporter: United States Court of Claims Reports
Court: United States Court of Claims
Jurisdiction: United States
Parties: WALTER J. WARDER v. THE UNITED STATES.
Judges: 
Pages: 159–178

Head Matter:
WALTER J. WARDER v. THE UNITED STATES.
[No. 14842.
Decided March 3, 1890.]
On the Proofs.
H. leases rooms to the Post-Office Department for the Chicago post-office, with an understanding that if insufficient for the needs of the service, other rooms shall be added without additional rent. He then assigns the lease with “all rents due or to become dm for the premises leased or agreed so to he." Subsequently, he furnishes the Department with additional rooms for the repair of the mail-bags, and presents his claim for rent to the city postmaster, who transmits it to the Department. His estate passes to an assignee in bankruptcy, and his claim for rent is sold to the present claimant.
I.An agreement in a lease that additional rooms shall be furnished by the lessor free of rent if those let prove insufficient for the needs, of the postal service must be limited to the needs of the service ; the rooms cannot be demanded for the repair of mail-bags.
II.An assignment of a lease “with rents due or to become due for the premises leased or agreed to be, now occupied for said post-office," does not extend to rooms subsequently let for a mail-bag repair shop.
III.The presentation of a claim for rent of rooms for post-office purposes to the city postmaster and his transmission of it to the Department is sufficient to take a case referred under the Revised Statutes, § 1063, out of the operation of the statute of limitatious.
IV. The presentation of a claim to the proper department hy the original claimant is sufficient for his assignee in bankruptcy, or a purchaser-in bankruptcy proceedings.
The Reporters’ statement of tlie ease.
The following are the facts of this ease as found by the court:
I. On or about the 14th July, 1874, a church at the corner of Wabash avenue and Harrison street, in the city of Chicago, occupied for post-office purposes after the conflagration of 1871, was destroyed by fire. Immediately after such fire the post-office was moved into what is known as the Honoré building, owned by H. H. Honoré; this was done at the instance of John McArthur, then postmaster, and without prior specific authority of the Post-Office Department. This action was made necessary and was justified by the emergency and the necessities of the public business, and was taken during negotiations-which resulted in the letting set forth in Finding II.
II. On or about the 25th day of July, 1874, said Honoré agreed, as shown in the following correspondence with the representatives of the Government, to lease to the. defendant a portion of said Honoré building for post-office purposes for the annual rental of $20,000. The following letters and telegrams were sent at the dates therein specified, by the persons by whom they purport to have been signed, and were received by the persons to whom they were addressed and communicated to. ' the said Honoré:
“ Western Union Telegraph Co,,.
“Chicago, III., July 25, 1874 — 10.50 a. m.
“Hon. J. W. Marshall,
“P. M. Gen?I, W., I). C.:
“Mr. Bangs, Mr. Rankin, supervisor of Gov’t buildings, and Postmaster McArthur, with myself examined different buildings, and unanimously agree to accept the building selected by Gen’l McArthur, which is in the Honoré Block. This can be secured for the annual rent of twenty thousand (20,000) dollars. This included all the room that can possibly be required for all branches of the service, including the railway mail service and sleeping apartments for agents and postal clerks. The building is to be put in complete order for occupancy.. The only expense will be the working fixtures. The office desks and iurniture was mostly saved. It is the saving of sixteen hundred dollars ground rent, and the rent of apartments for postal clerks which was in outside buildings. We would respectfully recommend that immediate action be taken, as each fire enhances the value of property here. If this meet with your approval telegraph at once. We will then send correct description of location, that proper papers may be drawn by Judge Spence.
“G-eo. S. Bangs,
“Gen. Supt. B. M. S.
“E. R,. Petherbridge, “Ch’fSp’l Agt. P. O. D.”
“ Franklin Tel. Go., July 25,1874.
“ Special Agents Bangs & Petherbridge,
i “Chicago, III.:
“ Your, selection of premises approved on the terms stated in your dispatch of this date, provided they can be retained until Gov’t building is ready for occupancy. Send accurate dimensions of premises so that lease may be prepared.
“ Jas. H. Marr,
“Act’g 1st Asst. P. M. G.”
“ Western Union Telegraph Co.,
' “ Chicago, III., July 27, 1874 — 1.33 p. m. ■
“ Jas. H. Marr,
“ Act’g 1st Asst. P. M. G., Washington, D. O.:
“Yours of twenty-fifth received. Anticipating your action, I had all the necessary papers sent you Saturday evening, which you ought to have received this morning.
“Yours, respectfully,
“E. R. Petherbridge,
“ Ch’fSp’l Agt. P. O. D.”
“ July 28, 1874.
“ E. E. Petherbridge,
“ Chief Special Agent, Chicago, 111.:
“Papers received. Give by telegraph extent in feet on Dearborn st., and on alley, and state whether the entire building from basement to roof is to be leased for post-office, and if not, what is to be excepted.
Jas. H. Marr.”
“ Western Union Tel. Go.,
“ Chicago, III., July 29, ’74.
“ Jas. H. Marr,
“Act’g Is# Asst. P. M. G., Washington, JD. C.:
“ Building five (5) stories and basement in height. Post-office will occupy two (2) stories and basement of Dearborn street front, and three (3) stories and basement of rear frontage ; on Dearborn street one hundred feet frontage, on alley one hundred and iorty-four feet. Plans of building will be sent by this evening’s mail. Please answer if this is satisfactory. Postmaster McArthur can attend to the papers being properly signed. Can I leave?
“ E. E. Petherbridgke,
“ Chf 8p’l Agt. P. 0. Dept”
“ Franklin Telegraph Go.,
“ July 29th, 1874.
“ E. E. Petherbridgke,
“ Chief Special Agent P. 0. JDepH, Chicago, III.:
“ The matter being so far suitably arranged, the Postmaster-General consents to your leaving.
“ J. H. Marr,
“ 1st Asst. P. M. (?.”
III. The premises referred to in the letters and telegrams (set forth in the second finding of fact), to be occupied for a post-office, were described and designated in the following report from the chief special agent of the Post-Office Department, and in the plans accompanying his report, and referred to therein:
“The building known as the Honoré building, situated on the southwest corner of Adams and Dearborn streets, extending from Adams street, on the south, to 18 feet alley, on the north.
“ The portion tó be occupied by the post-office is the north half, bounded by Dearborn street on the east and aforesaid alley on the north, on west joining to other property by party-wall ; general size, 158 by 92 feet.
“In the basement, comprising 8 apartments and hallways, together with entire control of the open court, and accommodations for water-closets, etc., under sidewalks.
“ On first story, the 3 front stores, the lower dining-room, and the adjuncts of the two adjoining rooms or (?) hallways.
“On second floor, 5 rooms fronting on Dearborn street, with their adjuncts of anterooms, closets, etc.; 4 rooms fronting the open court, with similar adjuncts, and a tier of water-closets adjoining the principal stairway; the grand dining room, with its adjuncts of wash-rooms, hall, and stairway.
“Thirdfloor, 12 rooms immediately over cining-room, fronting severa1 ly to open court on east and adjoining- lot on west, together with water-closets, stairways, hallways, etc.
“It is understood that the employés aud the public will have privilege and use of the passenger elevator.
- “It is further understood and agreed that that portion of the building for tbe use of tbe post-office shall be all completed and put in good order and condition, and' that tbe heating apparatus, gas, water, and plumbing shall be completed before possession is taken.
“Tbe approximate of space in tbe recently burnt post-office building was 31,525 superficial feet; that offered by the Honoré Building is 33,794 superficial feet, tbe lease to be made out in tbe name of the Marine Company of Chicago, Jonathan Young Scammon, president, as lessors. The .above is the description of the property known as the Honoré Building, selected by us for use as a post-office, subject to your approval, as I telegraphed you this morning.
“Yery respectfully, etc.,
“E. B. Petherbridge,
“ Chief Sp’l Ag’t, P. 0.1).
“The enclosed plans were omitted to be sent with my report on last Saturday. The black lines enclose that portion to be occupied by the post-office, except in the 3d story, the rear portion of which only will be occupied.
“ Bespectfully,'
“E. B. Petherbridge,
“ Chf. Sp’l Ag’t, P. O. D.”
The plans inclosed by Petherbridge show the rooms described in the petition herein as embraced in the portion to be occupied by the post-office, but the special agent made the following note as to the diagram when he forwarded it:
“The black lines inclose that portion to be occupied by the post-office, except in the third story, the rear portion of which only will be occupied.”
The said rear portion does not include the rooms in controversy in this case.
It was further understood between the parties that the Government was not to be strictly confined to the enumerated rooms, but if they were found insufficient for the needs of the service a reasonable addition of other rooms would be made without increase of rental.
IY. The defendants took possession of the premises described in the foregoing finding on or prior to July 25,1874, and used and occupied the same for post-office purposes, paying the agreed rental, from that date until late in the aftei’-noon of January 4, 1879, when another fire occurred.
Y. The 6th of October, 1874, the Connecticut Mutual Life Insurance Company became the assignee of the rents from the Honoré building and rights thereto in the manner shown by the following correspondence:
“ Chicago, III., Oct. 6,1874.
“ To the Post-Office Department
of the United States of America:
u This is to advise yon that we have assigned and transferred to the Connecticut Mutual Life Insurance Company, of Hartford, Connecticut, all the rents to be paid by your Department for the premises leased by us, or agreed so to be, to your Department for a post-office in Chicago, Ill. The premises so leased, or agreed to be, are known as the north part of the ‘ New Honoré Block,’ at the northwest corner of Adams and Dearborn sts., and are same now occupied and being used for said post-office. You will please pay over to the said Connecticut Mutual Life Insurance Company, its successors or assigns, or its or their authorized agent or agents, any and all rents due or to become due from this time forth for said premises so long as the same shall be occupied by your Department, and its or their receipt shall be a full acquittance and discharge for such rent.
“The Marine Company oe Chicago,
“ By J. Young Soammon, President.
H. H. Honoré.
“ The within notice accepted subject to certain bills for finishing the part of the building occupied by the post-office, amounting to, say, $15,078.83, which I have verbally agreed to pay to the contractor out of the rents as they accrue.
“ J. McArthur, P. M.
“ Post-Oeeice, Chicago, III.,
“November 2, 1874.
“Sir: The parties in interest in the Honoré Building, H. H. Honoré and the Marine Company of Chicago, have notified me of their assignment and transfer to the Connecticut Mutual Life Insurance Company of all rents to be paid by the Post-Office Department for the premises leased for and occupied by the post-office of Chicago. I inclose a copy of said notice, which, it will be observed, I have accepted subject to certain conditions.
“ Respectfully, etc.,
“ J. McArthur, P. M.
“ Hon. J. W. Marshall,
“First Asst. P. M. Gen11, Washington, D. OP
After the sum agreed upon was paid to the contractor the rent of $20,000 was regularly paid to the Connecticut Mutual Life Insurance Company by the defendants quarterly, includ- rag the quarter eucling December 31, 1878. After that time uo rent was paid.
YI. In June, 1875, the Postmaster-General, then in Chicago, finding it necessary to have room in the post-office for the repair of mail-bags, which had formerly been sent to other cities for repair, orally directed the postmaster to occupy certain rooms in the Honoré Building, then not in use, and which are not included in the list set forth in Binding III, which was done, and they were so occupied with the landlord’s consent until May 19, 1878. The following letters and telegrams were sent at the dates therein specified by the persons by whom they purport to have been signed, and were received by the persons to whom they were addressed:
“ Post-Oeeioe, Chicago, III.,
“ June 16th, 1875.
“ My Dear Sir: I find that about five tons in weight of mail-bags have been sent to Indianapolis and Cincinnati since the first day of June for repairs — about three hundred and fifty leather pouches and four or five thousand canvas sacks. Of course this will not do, and 1 have directed the postmaster to fit up one of the rooms in the basement of this office and put up a couple of men at work at $75 per month, naming his own men, and he will report the names to you.
* # * * ■ # # #
“ Yery truly, yours,
“Marshall Jewell.
“Hon. Jas. H. Tyner,
“ Second Assistant P. M. Qen’l, Washington, D. 0.”
[Personal.]
“ Post-Oeeice, Chicago, III.,
“Aug. 4,1875. .
“ Dear Sir : We have got the mail-bag repairing dep’t running in good shape. We started not a day too soon, as the work has accumulated very fast; in fact, we have at least 3 months’ work ahead. I have increased the force to 5 men and 1 woman. They are working finely, as will be seen by the statements of work done in July, herein inclosed. The exhibit shows a greater saving than I had looked for; but I have looked over it carefully and know it to be substantially correct. I know 1 have allowed liberally for material used. I have fitted up three small rooms on the third floor, but have made no arrangement about the rent, in consequence of Mr. Honoré being absent from the city. I have estimated it in the statement at what 1 think is right. I will make an official report at the end of the quarter, but as I understood the change originated with yourself, I thought you would be anxious to know how the system worked, henee this letter. The result, I am sure, must be gratifying to you.
“ Very truly, yours,
“ J. McArthur, P. M.
“ Hon. Marshall Jewell, P. ill. GP
VII. The postmaster after receiving the instructions of the Postmaster-(Jeneral applied to Mr. Honoré, owner of the building, spoke to him about the rent for the additional rooms, and looked at them. Mr. Honoré was at that time in pecuniary embarrassment, and there was a question as to his right to-make a lease; for this reason no definite price was then agreed upon; but it was understood by him and the postmaster that the rental should be estimated upon the reut under the original letting of the portion of the building then in possession of the post-office. The postmaster disclaimed authority to pay any specified sum, but said he would lay the whole matter before the Department.
The following letters were sent at the dates they bear by the persons by whom they purport to have been signed, and were received by the persons to whom they were addressed:
“Post-Opeice, Chicago, III.,
“Opeioe oe the Postmaster,
“April 7,1876.
“Sir: 1 herewith transmit letter of H. H. Honoré, making application for additional rent for extra rooms in his building now used for post-office purposes.
. “The amount claimed by him 1 do not consider unreasonable in connection with the reut of the whole building, but as compared with the amount at present allowed, the proportion I would consider to be about $3,500 per annum, and the proportion for heating, $400 per annum.
“I would further state that we have been occupying said additional rooms since July 1st, 1875. All of which is respectfully submitted.
“Very respectfully, your ob’t serv’t,
“J. McArthur, P. M.
“Hon. J. W. Marshall,
“First Ass’t P. M. General. Washington, I). OP
“Chicago, April 1 st, 1876.
“Dear Sir: I respectfully request you to call the attention of the Post-Office Department to the increased room now in use for post-office purposes in my building in excess of that con templated when originally rented. Your recommendation to the Department at that time was $26,000 per annum, which was also the opinion of several real estate dealers with whom 1 consulted at the time. The rent now agreed upon did not include as much room as the necessities of the service now compels you to use. I think, therefore, under the circumstances, lam entitled to $5,000 additional rent.
“ There is also an additional expense in heating, amounting to $500 per annum, which I consider I am justly entitled to. Will you please, therefore, have the matter attended to as early as possible, and oblige,
“ Yours, truly,
“ H. H. Honoré.
“Gen. John McArthur,
“Postmaster, Ohicago, Ills,”
December 31, 1877, the Connecticut Mutual Life Insurance Company, which had become the owner of the building, presented a bill for rent of these rooms to the post-office at Chicago, which was referred to the Post-Office Department in Washington. In reply the Department authorized the payment, as rent for the rooms, of a sum much less than demanded by the company. This offer was refused and further correspondence ensued, which resulted in the post-office surrendering these rooms and occupying fourth-floor rear rooms for mail-bag repairs.
On or about- December 19, 188 L, the plaintiff herein addressed the following communication to a special agent of the Post-Office Department:
1 “ Chicago, Bee. 19th, 1881.
“ IJ’r Sir: I wish to present to the Department at Washington the following facts in regard rent and heat of certain rooms in Honoré building (ou the third floor) used by the mailbag repairing employes, from the time possession was taken, July, 1875, to July 31st, 1877, when the ownership was acquired by the Connecticut Mutual Life Insurance Company, of the building. Mr. H. H. Honoré, the owner of the premises, was involved in difficulties that precluded his making a lease of said rooms, so that the postmaster (Gen. McAuthur) took possession without a lease, but under the agreementthat the amount to be paid as rent and for heat should be proportional to the amount paid for other portions of the building nsed for post-office purposes. I understand that you have investigated the matter and reported to the Department at Washington your conclusions, and that under the facts so stated you recommended the allowance of $800 per year as rent and $400 for heating for tlxe two years and twenty-nine days between the time of occupation and the change of ownership. I will, for the purpose of an early and speedy settlement of the claim, accept that amount, being $1,663.51 for rent and $400 tor heat.
“As you are aware, the Connecticut Mutual Life Ins. Co. have sued the Department in the Court of Claims for the 7 months these rooms were occupied after they took possession, at the rate of $10,000 (ten thousand dollars) per year, and while I make the above offer for the purpose of a speedy settlement of my claims, I reserve and claim that in case I am compelled to collect by suit the rent due, nothing in this offer shall be used or considered as a surrender by me of my right to sue for and collect a like amount, or as much thereof as that court in its wisdom may allow as a just and fair rent. I offer the following-copy of a letter from Geni. John McAuthor, the postmaster at Chicago at that time, to Hon. J. M. Tyner, 1 Asst. P. M. Geni., dated December 30th, 1878:
‘“Slit: On or about the-day of July, 1875, the then
Postmaster-General, Mr. Jewell, while on a visit of inspection to the post-office of this city, found that an emergency had arisen in the matter of repairing- mail-bags. He accordingly gave me verbal orders to start at once a repair shop in connection with the Chicago office (I being-then postmaster), and to make the best arrangements I could with regard to extra rent for rooms, heating, etc., basing my arrangements on the existing contracts, subject to approval of the Dept. The building being in litigation at the time, it was found impossible to make any contract with any one. We consequently took possession of sufficient room in the building, and went to work, leaving the matter to be adjusted when the ownership of the building was established, with the understanding with all parties in interest that the amount should be proportioned as to rent and heating with the balance of the building.
“1 Respectfully, etc.,
“ ‘ John McAtjther.’
“ In conclusion, allow me to say that the time has now arrived when a settlement can be made, and that no time has been lost in presenting this matter and calling upon the Dept, for its settlement at the earliest time when the ownership of the rents could be determined.
“ Respectfully, etc.,
“ W. J. Warder.
“ Capt. James E. Stewart,
“ Special Agt. P. O. 2).”
VIII. .On or about July 31,1877, Henry H. Honoré was declared a bankrupt, and Robert E. Jenkins was appointed his assignee in bankruptcy by the district court of the United •States for the northern district of Illinois. Thereafter Robert E. Jenkins, as assignee as aforesaid, executed the following bill of sale:
“ Know all men by these presents:
*■ That I, Robert E. Jenkins, assignee in bankruptcy of Henry ’H. Honoié, of the city of Chicago, in the county of Cook and State of Illinois, party of the first part, for and in consideration of the sum of thirty dollars, lawful money of the United States of America, to me, as assignee aforesaid, in hand paid -at or before the ensealing and delivery of these presents, by Walter J. Warder, also of the city of Chicago, county of Cook and State of Illinois, party of the second part, the receipt whereof is hereby acknowledged, have granted, bargained, sold, and delivered, and by these presents do grant, bargain, sell, and deliver unto the said party of the second part, all the right, title, and interest of the said Henry H. Honoré, bankrupt as Aforesaid, which he had on the 26th day of July, A. D. 1877 (the day proceedings, in the matter of said bankruptcy commenced), and all the right, title, and interest which the said party of the first part acquired by virtue of his appointment as assignee of said bankrupt’s estate, in and to all those certain uncollectable and desperate debts, claims, demands, judgments, promissory notes, or choses in action of every nature and description, known and described as follows, to-wit, a claim against the Government of the United States of America, for rent of that part of third floor of Honoré building used by mail-bag repairing-rooms from July, 1875, to July 81, 1877 (1877).
“ It is expressly understood and agreed, however, that the said party of the second part acquires hereby no title or claim to any moneys collected by said party of the first part prior to the sale hereinafter iBentioned, and that no compromise or settlement by the party of the first part with any debtor of said bankrupt’s estate shall be in any manner affected hereby.
“ This transfer is made pursuant to a sale of the claims and demands aforesaid, which sale was duly confirmed by order of the district court of the United States for the northern district of Illinois, entered in the matter of said bankruptcy on the 30th day of October, A. D. 1883.
“ And it is expressly understood and agreed that said claims and demands are sold and transferred hereby, subject to all set-offs and counter claims, and that said party of the second part shall collect the same at his own expense, and shall keep and save harmless the said party of the first part from all cost and expense of such collection. •
■“ To have and to hold the said goods, chattels, and property unto said party of the second part, his heirs, executors, administrators, and assigns, to and for his and their own proper use and behoof, forever.
“ In witness whereof I, the undersigned, assignee as aforesaid, have hereunto set my hand and seal the 30th day of October, in the year one thousand eight hundred and eighty-three.
“Robert E. Jenkins, [seal.] “Assignee of the estate in bankruptcy of said “ Henry H. Honoré, bankrupts
Northern District oe the State op Ielinois,
Cook County, ss:
On this 26th day of November, A. D. 1884, before me came Robert E. Jenkins, to me known to be the person who executed the within instrument as the assignee of Henry H. Honoré, in bankruptcy, and he duly acknowledged to me the execution thereof for the uses and purposes therein mentioned.
Witness my official seal and hand.
[seal.J M. Byron Rich,
Notary Public.
The following order was thereupon made:
“ In the district court of the United States for the northern district of Illinois.
“ Tuesday, October 30th, 1883.
“Present, the Hon. Henry W. Blodgett, judge.
“ 3662. In the matter of Henry H. Houoré, bankrupt.
“In bankruptcy.
Upon reading and filing the report of R. E. Jenkins, assignee .herein, of the sale of a claim of said bankrupt’s estate against the Government of the United States of America for rent, it is ordered by the court that said report be, and the same is hereby, approved and said sale confirmed.
IX. The rooms taken for mail-bag repair shops were on the third story; at first the Government took four rooms, two on the northeast corner of the building and two of them across the hall. Many other post-offices were directed to send sacks and pouches to Chicago for repair, thus materially increasing the work, and therefore the postmaster was obliged to take the next two rooms south of the two west rooms and the two rooms south of the two east rooms, making four more rooms 5 then they placed a partition across the hall between the rooms, thus cutting it and them off the balance of the building. Later they took still another room, that next on the east to the rooms already taken and looking upon Dearborn street. So in all they took five rooms facing east, four facing west, and all of the north hallway.
There were repaired in these rooms about ,5,000 sacks per week and from 600 to 800 pouches per week.
The following is a diagram of the rooms in question:
These rooms had not been finished ; they were available for 'the purpose for which used; they were in a desirable portion ■of the building; rooms less advantageously situated would have served equally well for mail-bag repairs.
X. A fair aud reasonable rent at that time for the rooms on the third floor so used as aforesaid, in the unfinished condition in which they were, and on the basis of the rent paid for the ■rest of the building occupied by defendants was, for the period covered by the assignment in bankruptcy, the sum of $3,450.
Mr. James JB. Embry for the claimant.
Mr. F. P. Dewees (with whom was Assistant Attorney-General •Cotton) for the defendants.
The opinion of the court in the case of The Connecticut Mutual Life Insurance Company vs. The United States (21 0. Cls. R., 191) is referred to as part of the argument in this case.
This case presents a claimant without a claim. The rents, whatever they were, due or not due from the Government to Honoré, were assigned in 1874 to the Connecticut Insurance Company. The original verbal lease of the whole was not ■definite as to the number of rooms required for its purpose.
It was claimed by the Connecticut company that the rent of the mail-bag-repairing rooms was included in the assignments of rents to them. It was held by the Government that the rent had been fully paid, such rooms being included in original lease.
But this court is without jurisdiction. The claim, if any there be (and that there is any is denied), accrued quarterly •from the lstof July, 1875.
Warder’s claim was presented to the Post-Office Department in 1884, more than six years after the claim first accrued. The claim is barred under the provisions of section 1069, R. S.
Where a claim was not presented to the Department in which it originated before it became barred by the statute of limitations, it can not be referred by that Department to this court under section 1063, E. S., and the court does not acquire jurisdiction by such reference. Savage Exr. vs. U. 8. (23 C. •Cls. R., 255), Finn’s case (123 U. S. R., 227).

Opinion:
Davis, J.,
delivered, the opinion of the court:
Immediately after the fire of 1874 in Chicago, which destroyed the post-office, the postmaster there arranged to rent a portion, of a large building known as the "Honoré" building for postal service.' No formal contract in writing was ever' made, and the various negotiations and circumstances relating to the agreement between the owner of the building and the Government have been discussed, and the agreement has been construed by this court in two cases between the Connecticut Mutual Life Insurance Company, plaintiffs, and the United States, defendants, reported in twenty-first Court of Claims Reports, pages 191 and 195. The facts in those cases so far as they relate to the present issue are now again found. In. the former opinions we said:
"He (the postmaster) practically settled upon the premises known as the Honoré block, and after an informal understanding with the owner began moving into it the clerks and property of his office; meantime a special agent had been dispatched from Washington, who, upon arrival, conferred with, the postmaster, the supervisor of Government buildings, and the general superintendent of the Railway Mail Service as to-suitable quarters for the post office. They examined several buildings and unanimously settled upon the Honoré block, recommending that a certain portion of it be taken at a rental of $20,000 per annum. The Post-Office Department agreed to this, provided the rooms could be retained until the Government building, then in process of erection, should be 'ready for occupancy.' This stipulation was assented to, it being generally understood that the Government building would probably not be ready for some three years. No written lease was-entered into, but the findings show that the Government had the right under the verbal agreement, so far as it was binding, to occupy a defined portion of the Honoré block at a rental of $20,000 per annum until their own building should be ready for occupancy. This arrangement was made July 25,1874, and the defendants remained on the premises until January 4, 1879." (21 O. Gis.' U., 196.)
So much as to the first letting. Subsequently other rooms were occupied by the defendants and this transaction was thus described by us:
"During the summer of 1875 the Postmaster-General inspected the post-office in Chicago, and directed the postmaster to use some unoccupied rooms iu the Honoró block, of a part of which the Government was then a tenant as set forth in the findings in another action between the same parties tried with this. The postmaster obeyed this direction, and used the rooms {which were in an unfinished state) for a 'mail-bag repair department.' "
In July, 1877, Honoré was declared bankrupt, and his as-signee sold to Warder, the plaintiff herein, all the right, title, and interest which Honoré had on the 26th July, 1877, and all the right, title, and interest acquired by the assignee, to what was declared in the assignment to be " a claim against the Government of the United States of America for rent of that'part of third floor of Honoré building used by mail-bag repairing rooms from July, 1875, to July 31, 1877." This sale was confirmed by the court. Plaintiff therefore claims the rent for these rooms for the period anterior to the bankruptcy; the Connecticut Mutual Life Insurance Company claimed the same rent for the period following the bankruptcy, having abandoned all demand for the period covered by plaintiff's petition. The two cases differ in this, that in the former case there appeared negotiations between the parties after the bankruptcy and after the insurance company had become the owner of the Honoré building; those negotiations which before had an important bearing upon the litigation cío not affect the present case. In the case at bar we can consider only that which occurred while Honoré owned the building prior to the bankruptcy proceeding and the sale of the claim to plaintiff herein, and new testimony is now introduced in relation thereto. Further testimony has also been introduced in relation to Honoré's endeavors to obtain compensation for the rooms which somewhat changes the findings upon this point.
Honoró agreed to let a portion of the building for a fixed rental, and we must determine what portion was covered by the agreement, and whether the rooms, rent for which is now claimed, were part thereof.
July 29,1874, the special agent of the Post-Office Department who had the matter in charge thus described this portion in a telegram to the Department in Washington: "Building five stories and basement in height. Post-office will occupy two stories and basement of Dearborn-street front and three stories and basement of rear frontage, on Dearborn street 100 feet frontage, on alley 144 feet." Upon receipt of-this tele gram the agent was allowed to leave Chicago, his action being in effect approved.
In a formal report to the Department, made at the same time with the telegram, the same agent described the leased portion much in detail, and included in his description the rooms now in question. In sending forward the plans, however, he stated this to have been an error, and explicitly declared that the rooms the subject of this controversy were not included in the rented portion. 'Uo objection seems to have been made by the Department. These rooms were not occupied for nearly a year, and the full rent was paid.
In June, 1875, the Postmaster-General visited Chicago, and, finding it necessary to provide facilities for repairing mail-bags, he directed the postmaster to provide such iaeilities, apparently thinking at first that one room in the basement would be sufficient. As a result of further conversation between them, apparently, the postmaster, under the direction of his chief, fitted up a few rooms in the' third story, and because of the great increase in business was soon obliged to add others, until he had absorbed upon this story nine rooms and a hall. At the same time the postmaster had a conversation with Mr. Honoré, the owner, in relation to the rental value of the rooms ; but, for reasons detailed in the findings no lease was made, while it nevertheless was understood that a rental should be estimated upon the rent then being paid under the original letting. Later the postmaster wrote to the Department that owing to Mr. Honored absence no arrangement had been made as to additional rent, but an estimate therefor was sent with the letter. Later, Honoré demanded rent, and his demand was approved by the postmaster. '
There would be no difficulty in reaching the conclusion that these rooms in the third story were not included in the original letting were it not for an understanding that the Government was not to be strictly confined to the enumerated rooms, but if these were insufficient for the needs of the service a reasonable addition of other rooms would be made without increase of rental. The amended report of the special agent, made when the building was first leased, distinctly shows that - these third-story rooms were not regarded as included in the general letting, and if they are now to be so regarded it must be by reason of the broad understanding that the Government was not to be strictly confined to the enumerated rooms. Evidently any addition of space made under such an agreement must be reasonable and not excessive, and must be for the needs of the postal service.
It appears that mail-bags had not been repaired in Chicago prior to the taking of these rooms, but had been sent to other-cities, so that Honoré can not be assumed to have known that any space would in the future be required for this kind of work. The repair of mail-bags is in a sense a part of the-postal service; so is the manufacture of mail-bags or postage-stamps ; yet without something to put him upon inquiry the lessor of a building to the Post-Office Department for postal service would be unlikely to anticipate the establishment therein of a shop for extensive repairs or for the manufacture of articles needed in connection with that service. The rooms-were nine in number, excluding the hall, and upon the third-story; rooms not entirely finished, but nevertheless available-for other tenants, and in any event having a value out of proportion to the needs of the kind of service rendered by a repair-shop. The Postmaster General himself thought at first that one room in the basement would suffice, and while the-needs of the work may have required more space than he then anticipated, they did not require rooms of so much superior grade.
It appears further that not only were the mail-bags of the Chicago office repaired in this shop, but pouches and sacks-were sent there from the surrounding country, vastly increasing the business. The postmaster at Chicago and the owner-of the building both assumed that some rent should be paid for the use of these rooms; of this the Department was informed and did not then dissent.
In view of all these circumstances we can not regard the-addition of these rooms as embraced in the understanding as to " reasonable addition of other rooms " without increase of' compensation, and we think the owner was entitled, for them,, to a reasonable addition to the rental.
It is, however, urged that by an'assignment from Honoré, in-1874, the Connecticut Mutual Life Insurance Company became-entitled to any rents from this building due or not due from the Government; further, that this action is barred by the statute of limitations, as the claim, if any, accrued quarterly from the 1st of July, 1875, while plaintiff first presented his demand to the Post-Office Department in 1881.
The assignment to the Connecticut Mutual Life Insurance Company was in 1874, some time prior to the occupation by defendants of the rooms in controversy; the assignment itself is not in the record, but there has been produced in evidence without objection and appears in the findings a notification to the Post-Office Department, signed by the insurance company and by Honoré, which recites the terms of assignment. Prom this it appears that Honoré assigned the " rents due, or to become due," from the G-overnment "for the premises leased by us, or agreed so to be," for a post-office in Chicago; " the premises so leased, or agreed to be," are described as " the north part of the ' Hew Honoré Block,' at the northwest corner of Adams and Dearborn streets, and are the same now occupied and being used for said post-office."
Only a portion of the building was at any time occupied by the Government, the remainder being free for rental to others, and at the time the assignment was made the rooms now in controversy, which, as we have seen, were not included in the original letting, were then under the owner's control. It eau no more be held that the assignment covered these rooms than that it. covered all other rooms in the Honoré building vacant at the time the instrument was executed, and which might at any subsequent time have been occupied by the Government. The subject-matter of the assignment was the space "leased or agreed to be" leased to the Government at that time; these rooms were not leased to the Government, nor was there any agreement to lease them, for they Were not included in the reasonable addition of rooms allowed by the agreement. Defendants' contention then upon this point can not be supported.
The case comes here by reference from the Postmaster-General, in accordance with the provisions of section 1063 of the Revised Statutes, and it is urged that as plaintiff did not himself present the claim to the Post-Office Department until more than six years had elapsed after it accrued, the claim is barred, under the provisions of section 1069, R. S. It appears, however, that immediately after the rooms were occupied Houoré, plaintiff's assignor, did present the claim, both orally and in writing, to the postmaster in Chicago, who recommended an allowance, and in writing to the Department in Washington ; and that títere followed correspondence and discussion in relation thereto. The claim therefore was presented for settlement to the proper Department well within six years. At that time plaintiff was notits owner; but he is entitled, under the assignment, to the benefit of the prior acts of his assignor, done in an effort to secure favorable action upon the claim. The claim was first presented by Honoré to the Department almost immediately after the occupation of the rooms. The petition relates back to that date, and the action is not barred by the statute of limitations. Finn v. The United States (123 U. S. R., 227). Lippett v. The United States (14 C. Cls. R., 148, and 100 U. S. R., 663. Green v. The United States (18 C. Cls. R., 93). Savage v. The United States (23 id., 255).
The reasonable rental value of the rooms in controversy, in their then unfinished state, for the period covered by the assignment in bankruptcy, we find to be $3,450, and judgment will be entered for this amount in plaintiff's favor.