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is not entitled to the three months' pay given by the acts
of March 3, 1865, and of July 13, 1866, to officers of that
grade on being honorably discharged, under the terms of
the act, from "military service;" he resuming his duty
and rank in the Regular Army, and being still in the said
service. (United States v. Merrill, 9 Wall., p. 614.)

CLAIMS, INTEREST ON.

[12 Stat. L., p. 765, sec. 7.]

[Extract from AN ACT To amend "An act to establish a court for the
investigation of claims against the United States," approved February
twenty-fourth, eighteen hundred and fifty-five.]

Claims sustained, how

SEC. 7. And be it further enacted, That in all cases of final judgments by said court, or on appeal by the said paid. supreme court where the same shall be affirmed in favor of the claimant, the sum due thereby shall be paid out of any general appropriation made by law for the payment and satisfaction of private claims, on presentation to the Secretary of the Treasury of a copy of said judgment, certified by the clerk of said court of claims, and signed by the chief justice, or, in his absence, by the presiding judge, of said court. And in cases where the judgment Interest. appealed from is in favor of said claimant, or the same is affirmed by the said supreme court, interest thereon at the rate of five per centum shall be allowed from the date of its presentation to the Secretary of the Treasury for payment as aforesaid, but no interest shall be allowed subsequent to the affirmance, unless presented for payment to the Secretary of the Treasury as aforesaid: Provided, That no interest shall be allowed on any claim up to the time of the rendition of the judgment by said court of claims, unless upon a contract expressly stipulating for the payment of interest, and it shall be the duty of the Secretary of the Treasury, at the commencement of each Congress, to include in his report or [a] statement of all sums paid at the treasury on such judgments, together with the names of the parties in whose favor the same were allowed: And it is further provided, That such payments shall be a full discharge to the United States of all claim or demand touching any of the matters involved in the controversy: And provided further, That any final judgment rendered against the claimant on any claim Payments to prosecuted as aforesaid shall forever bar any further charge, and claim or demand against the United States arising out of bar all further the matters involved in the controversy.

Approved, March 3, 1863.

35559-08

be full dis

claim.

cision by the

Note of de- NOTE. Interest on claims is apparently not sanctioned Supreme Court by the Supreme Court on claims against the United and Court of States. (See 7th Wallace, Gordon v. The United States,

Claims.

page 188.) In the Treasury Department this has been the unvaried and uniform course of action, and sustained by the official opinions of several Attorney-Generals.

In an able article in the Boston Law Review, it is said:

A few leading principles affecting the responsibility of the United States, which have now received the sanction of judicial approval, may be briefly noticed.

First, the United States is not liable for interest unless upon special agreement, as in the public loans. Such was the uniform rule, from the earliest times, in accordance with the advice of the attorneys-general. This question was fully discussed in Todd's case, and the principle sustained by the court. It was held that the right of individuals to interest is merely conventional in its origin, depending upon law and usage, and that neither law nor usage can be found to render Government liable. As this decision has been re-affirmed, and an act of Congress, recently passed, forbids the payment of interest on Government claims, the principle is finally settled. It was also held, in Keith's case, that a resolution of Congress, directing the settlement of an account upon principles of equity and justice," does not imply the payment of interest. (American Law Review, Boston, July, 1867, vol. 1, p. 657; Court of Claims Reports, etc.)

66

Interest has always been paid upon the advances of the States for war purposes, where the State has been compelled to pay interest for the benefit of the Government; it then becomes a part of the principal of her claim. Such is the case of a State which has been obliged to raise money upon interest for the suppression of hostilities against which the United States should protect her. In such cases the amount of interest actually and necessarily paid have been allowed.

The Revolutionary war.-By the acts of Congress of 5th August, 1790, and May 31, 1794, providing for the settlement of their advances during the revolutionary war, interest was allowed and paid.

The war of 1812-15.-The whole subject of interest upon advances of States, during the war of 1812–15, was discussed in 1824-25, in a message of President Monroe, and accompanying papers, upon the case of Virginia. (See Senate Documents, 18th Cong., 1st sess., 3d vol., doc. 64.)

66

The act of March 3, 1825 (United States Laws, vol. 4, p. 132), was the result and settled the principle upon which interest has been allowed for advances in 1812-15, and since. Virginia was allowed interest, but not on any sum on which she has not paid interest." Interest, upon this rule, has been allowed to every State except Massachusetts, which made advances in the war of 1812-15.

See the following cases: Maryland (U. S. Laws, vol. 4, p. 161), Delaware (U. S. Laws, vol. 4, p. 175), New York (U. S. Laws, vol. 4, p. 192), Pennsylvania (U. S. Laws, vol. 4, p. 241), South Carolina (U. S. Laws, vol. 4, p. 499).

The same principle was applied to the case of the advances of the city of Baltimore. (See act of Apr. 2,

1830.)

Indian and other wars. See the following cases of the allowances of interest: Alabama (U. S. Laws, vol. 9, p. 344), Georgia (U. S. Laws, vol. 9, p. 626), Washington Territory (U. S. Laws, vol. 17, p. 429), New Hampshire (U. S. Laws, vol. 10, p. 1).

The Mexican war. The rule allowing interest has been applied not only to States, but to corporations and individuals. See (U. S. Laws, vol. 9, p. 236) third section. of the act to refund advances, etc., for the Mexican war, as follows:

That, in refunding moneys under this act, and the resolution which it amends, it shall be lawful to pay interest at the rate of six per centum per annum on all sums advanced by States, corporations, or individuals, in all cases where the State, corporation, or individual paid or lost the interest, or is liable to pay it. (See H. Rep. No. 119, 38th Cong., 1st sess.)

The interest on the Massachusetts advances was paid by act of July 8, 1870. (16 Stat., 197. See Sumner's S. Report No. 4, 1st sess. 41st Cong., April 1, 1869; Ela's H. Report No. 76, 2d sess. 41st Cong.)

The Court of Claims decided in the case of Archibold McKee et al., administrators v. The United States (10 Ct. Cls., p. 231), that: Where Congress directs the court to "adjust and settle " a claim according to the "rules and regulations heretofore adopted by the United States in the settlement of like cases," and it appears that Congress has generally given interest in such cases, interest will be allowed by the court, notwithstanding the pro-vision in the amended Court of Claims act (12 Stat. L., p. 765, sec. 7) "that no interest shall be allowed on any claim unless upon a contract expressly stipulating for the payment of interest.”

The judgment of the Court of Claims was affirmed by the Supreme Court of the United States.

COURT OF CLAIMS, AN ACT TO AMEND THE ACT ESTAB-
LISHING, AND OTHER ACTS RELATING TO.

[12 Stat. L., p. 765.]

AN ACT To amend "An Act to establish a Court for the Investigation of Claims against the United States," approved February twenty-fourth, eighteen hundred and fifty-five.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there shall be appointed by the President, by and with the advice and consent of the Senate, two additional judges for the said court, to hold their offices during good behavior, who shall be qualified in the same manner, discharge the same duties, and receive the same compensation, as now provided in reference to the judges

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All petitions and bills for

ment to be sent to court.

of said court; and that from the whole number of said
judges the President shall in like manner appoint a chief
justice for said court.

SEC. 2. And be it further enacted, That all petitions private claims and bills praying or providing for the satisfaction of against Govern- private claims against the Government, founded upon any law of Congress, or upon any regulation of an executive department, or upon any contract, express or implied, with the Government of the United States, shall, unless otherwise ordered by resolution of the house in which the same are presented or introduced, be transmitted by the secretary of the Senate or the clerk of the House of Representatives, with all the accompanying documents, to the court aforesaid."

Court to consider set-offs,

ernment.

SEC. 3. And be it further enacted, That the said court, etc., for Gov- in addition to the jurisdiction now conferred by law, shall also have jurisdiction of all set-offs, counter-claims, claims for damages, whether liquidated or unliquidated, or other demands whatsoever, on the part of the Government against any person making claim against the Government in said court; and upon the trial of any such cause it shall hear and determine such claim or demand both for and against the Government and claimIf court finds ant; and if upon the whole case it finds that the claimant is indebted to the Government, it shall under [render] ment, to render judgment to that effect, and such judgment shall be final, with the right of appeal, as in other cases herein provided for. Any transcript of such judgment, filed in the clerk's office of any district or circuit court of the United in district, etc., States, shall be entered upon the records of the same, and shall ipso facto become and be a judgment of such district or circuit court, and shall be enforced in like manner as other judgments therein.

that claimant

owes Govern

judgment

therefor.

Transcript

of judgment

to be entered

court, and be

enforced like

other judg

ments.

Annual ses

sion to com

ers.

Rules.

SEC. 4. And be it further enacted, That the said court mence 1st Mon- of claims shall hold one annual session, commencing on day in October. the first Monday in October in each year, and continuing so long as may be necessary for the prompt disposition of the business of the court. The said court may prescribe rules and regulations for practice therein, and it may punish for contempt, in the manner prescribed by common Commission- law. It may appoint commissioners, and may generally exercise such powers as are necessary to carry out the powers herein granted to it. The judges, solicitors, and clerks of said court shall be admitted to the use of the conLaw library. gressional library, and also the law library, until a law library be provided for them. The said court may appoint a bailiff, who shall hold his office during four years, unless sooner removed by said court for cause, and who shall receive a salary of one thousand dollars, payable quarterly. The judges and clerks of said court may ad

Bailiff.

Salary.

a This court has no jurisdiction of cases arising under the revenue laws. Nichols v. The United States (7 Wall., p. 122).

1

1

די

minister oaths and affirmations, take acknowledgments of instruments in writing, and give certificates of the same. Said court shall have a seal, with such device as it may order. Members of either house of Congress shall not practice in said court of claims.

a

Oaths, etc.

Seal.

Members of
Congress not to
practice in
Court of
Claims.

Supreme

when to be

SEC. 5. And be it further enacted, That either party Appeals to may appeal to the supreme court of the United States Court. from any final judgment or decree which may hereafter be rendered in any case by said court wherein the amount in controversy exceeds three thousand dollars, under such regulations as the said supreme court may direct: Provided, That such appeal shall be taken within ninety days after the rendition of such judgment or decree: And pro- taken. vided, further, That when the judgment or decree will peal may be affect a class of cases, or furnish a precedent for the future had without action of any executive department of the Government in amount in conthe adjustment of such class of cases, or a constitutional troversy. question, and such facts shall be certified to by the presiding justice of the court of claims, the supreme court shall entertain an appeal on behalf of the United States, without regard to the amount in controversy.

When an ap

reference to

assistants,
how appointed.

Duty.

SEC. 6. And be it further enacted, That the solicitor, Solicitor and assistant solicitor, and deputy solicitor of said court, shall hereafter be appointed by the President, by and with the advice and consent of the Senate, and it shall be their duty faithfully and diligently to defend the United States in all matters and cases before said court of claims; and in all cases taken by appeal therefrom to the supreme court; and no other fee or compensation than the salary of said solicitor, and assistant and deputy solicitors, shall hereafter, in any case, be paid to either of them, and no fee or compensation for services in either the supreme court or court of claims shall hereafter be allowed or paid in any case by the United States.

No fee but salary.

tained, how

SEC. 7. And be it further enacted, That in all cases of Claims susfinal judgments by said court, or on appeal by the said paid. supreme court where the same shall be affirmed in favor of the claimant, the sum due thereby shall be paid out of any general appropriation made by law for the payment and satisfaction of private claims, on presentation to the Secretary of the Treasury of a copy of said judgment, certified by the clerk of said court of claims, and signed by the chief justice, or, in his absence, by the presiding judge, of said court. And in cases where the judgment appealed from is in favor of said claimant, or the same is affirmed by the said supreme court, interest thereon at the rate of five per centum shall be allowed from the date of its presentation to the Secretary of the Treasury for payment as

This clause giving to the Supreme Court appellate jurisdiction to review the decisions of the Court of Claims, is unconstitutional. (Gordon v. United States, 2 Wall., p. 561.)

Interest.

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