IV. Where an officer of the Army having dependents is
on leave of absence without quarters from October 25,
1922, to December 15, 1922, and on October 25, 1922,
is honorably discharged from the service, to take
effect December 15, 1922, with one year's pay, he is
entitled to rental allowance under the act of May 31,
1924, 43 Stat., 250, from October 15, 1922, to December
15, 1922. Markley, 924.
See also Jurisdiction, IV.
ASSIGNMENT.
Where services have been performed for and materials fur-
nished to the United States by subsidiaries of plaintiff,
organized under the laws of different States, and the
claims against the United States for such services and
materials have been assigned to the plaintiff, such
assignments come within the provisions of section
3477, Revised Statutes, and the plaintiff can not
recover on such claims. Packard Motor Car Co., 354.
AVIATION PAY.
See Navy Pay, IV, V, VI.
BEVERAGE TAX.
See Internal Revenue, ÍI.
CAPITAL STOCK TAX.
The special excise tax on every domestic corporation imposed by
paragraph 1 of section 1000 (a) of the revenue act
of 1918, 40 Stat., 1126, on "the fair average market
value of its capital stock," should be assessed and
collected on its net assets. Ray Consolidated Copper
Co., 686.
CHARTER PARTY.
See Contract, IX.
CIVIL SERVICE EMPLOYEE.
Where a civil-service employee has been separated from the
service under conditions substantially in accord with
the civil-service rules, and said employee acts and
conducts himself in such a way as to indicate an
intention on his part to waive the technical require-
ments of the rules, he may not thereafter invoke
the rules in his behalf. Morse, 139.
COMBINATION OF RATES.
Where the only through interstate tariff rate between two
points is the individual rate, through transportation
of a party should be charged at that rate, and a less
rate can not be constructed by combining the party
rate applicable to part of the distance with the indi-
vidual rate applicable to the remainder. Chicago
Great Western R. R., 218.
COMMUTATION.
See Army Pay, III.
CONTRACT.
I. The act of July 9, 1918, 40 Stat. 845, 850, authorizing
the President, through the head of any executive
department, to sell upon such terms as the head of
such department shall deem expedient," certain prop-
erty belonging to the Government, did not authorize
the President to give an option for the purchase of
such property. Joice, 1.
II. A provision in a contract stipulates that "should
there be additional 80-pound A. R. A. type 'B' rail
and accessories declared surplus within five months
other than that mentioned in sections 2 and 3, the
purchaser shall have the right to accept the same
under the general conditions, qualifications, and prices
as stated in the contract," the contracting officer
agrees to give a 10-day notice to the purchaser of such
material as is available, and the purchaser agrees to
give a certified check of 10 per cent of the value of
the material, said check to be held as a guaranty, as
indicated in section 13 (b), payment for the delivery
of this material to be made as called for in section 13
(b), is held to be an option and not a sale of such
materials. Id.
III. Where, under a contract to deliver oats to the United
States, the Government refuses to accept the balance
of the oats so contracted for, and after repeated and
unsuccessful efforts to secure their acceptance the
plaintiff sells them in the open market at the pre-
vailing market price, there is a breach of a contract
of sale by the failure of the Government to complete
the purchase, and the measure of damages is the dif-
ference between the contract price and the market
price at the time the contract was breached. Schaefer,
134.
IV. Where a hotel company proposes to the Government to
rent its hotel building for a hospital upon conditions
that "no part of the property shall be used for the
purpose of treating or housing any person suffering
from tuberculosis in any form, or from smallpox or
any other like contagious or obnoxious disease, pro-
vided, however, that this shall not apply to a person
suffering from tuberculosis housed temporarily in said
premises for an operation or the like," but the Gov-
ernment refuses to lease said building until the clause
is changed so as to read, "no part of the property
shall be used for the purpose of receiving for treat-
ment any person suffering from tuberculosis in any
form," etc., the reception by the Government of per-
sons for treatment for other diseases or for observa-
tion, who on diagnosis show also one of the prohibited
diseases, is not a breach of the contract. Kenilworth
Co., 156.
V. Where work has been performed and material furnished
for the War Department under an informal contract
entered into by proper authority, and the compensa-
tion agreed upon has been paid to the contractor, the
Government is not liable under the Dent Act for any
extra work performed or material furnished by said
contractor during the progress of the work under said
agreement. Neal-Blun Co., 182.
VI. Where a contract has been fully performed and the con-
sideration named therein received in full, in the ab-
sence of satisfactory proof of mutual mistake at the
time of its execution, such contract will not be re-
formed. Phoenix Horseshoe Co., 234.
VII. Where the United States Shipping Board requisitioned
a vessel and the owner subsequently voluntarily enters
into a contract with the United States by which it
accepts the compesation fixed by the said board, and
during the period of requisitioning accepts said com-
pensation without protest, the owner can not recover
additional compensation because some other shipowner
has been given more favorable terms. Pacific Mail
Steamship Co., 246.
VIII. Where the contract provides that revisions of rates
fixed by the board "will be made, if reasons therefor
are found to exist, at intervals of not more than 90
days," the owner can not recover additional compen-
sation if no such revisions are made. Id
IX. Where the charter signed by the owner contained a
provision that the date on which the vessel "entered
into pay" was October 13
the charter party was not
January 7, 1918. Id.
1917, it is immaterial that
signed by the board until
X. Where it was necessary for a cost-plus contractor dur-
ing the World War to employ men, designated as
expediters," to travel around to different places to
secure labor and the prompt delivery of materials for
the work under the contract, and the employment of
such men received the approval of the Government
officer in charge of the work, the expenses of their
employment was part of the cost of the work. Jas.
Stewart & Co., 295.
XI. Where a cost-plus contractor was required to pay war
taxes on freight bills, telegrams, express charges,
and passenger fares necessary in the prosecution of
the work under his contract, such expenses were a part
of the cost of the work.
XII. Where the Government advertises war material for
sale in excess of the amount it possesses, and the
plaintiff, being aware of the shortage bids on and
pays the agent of the Government for the whole
amount advertised, and the purchase money is returned
by the agent upon discovery of the error by him, the
Government is not liable for such shortage. Mottram,
302.
XIII. Where the Government enters into a contract with
its selling agent, stipulating, among other things, that
he is to assume all liability for claims growing out of
the sales of Government war material, it was the duty
of all persons dealing with such agent to inform
themselves of his authority to issue catalogues listing
quantities of material for sale, and to look to him for
any shortage in such quantities. Id.
XVI. Where a contractor, without fault on his part, is
delayed by the failure of the Government to have
other work completed in contract time, and the time
for completion was extended a corresponding number
of days the Government is liable for the actual dam-
ages sustained by the contractor by reason of such
delays. Crook Co., 348.
XV. Where plaintiff wrote a letter to the depot quarter-
master at Chicago offering to deliver during January,
February, and March, 1919, 17,500,000 pounds of bacon ;
6,000,000 pounds in January, 5,500,000 in February,
and 6,000,000 pounds in March, and the Food Admin-
istration, at the request of said depot quartermaster,
allotted to plaintiff the deliveries of bacon proposed
by him, and the depot quartermaster thereupon ac-
cepted plaintiff's offer, the price being understood by
all parties to be the cost of said bacon plus 2%%
added as profit, and the offer was fully performed by
the plaintiff as modified by mutual agreement, there
was a contract in writing binding upon the Govern-
ment. Swift & Co., 364.
XVI. Where the Government failed to perform its part
of the contract and refused to receive all the bacon
contracted for and properly prepared for delivery,
and the plaintiff in good faith, without undue delay
or negligence, sold said bacon in the open market at
a loss, the plaintiff is entitled to recover the difference
between the cost plus the 2%, and the selling price
thereof. Id.
XVII. Where a contracting officer recommends an extension of
the time limit of a contract on account of the labor
situation, and the Chief Engineers grants an extension
under a provision of the contract allowing an exten-
sion in the judgment of the contracting officer ap-
proved by the Chief of Engineers for a period equal
to the time lost through fault of the United States, or
through extra work ordered by the contracting officer,
or unusual freshets, ice, rainfall, or other abnormal
force or violence of the elements, or by strikes, epi-
demics, local or State quarantine restrictions, or other
unforeseen cause of delay arising through no fault
of the contractor, and which actually prevented such
contractor from delivering the material or commencing
or completing the work within the period required by
the contract, such provisions of the contract are
broad enough to cover the grounds of the recom-
mendation by the contracting officer, and the con-
tractor is entitled to recover the cost of inspection
and superintendence paid by him for such period of
extension. National Contract Co., 441.
XVIII. Where a contract provides for an allowance to the con-
tractor for pumping out each time the cofferdam is
flooded while work is actually in progress during the
time limit of the contract but not to apply to flooding
after the expiration of the time limit the contractor
can not recover such allowance where the cofferdam is
flooded during an extension after the time limit named
in the contract has expired. Id.
XIX. Where mutual mistakes in the specifications are made
which require a contractor to perform work clearly not
contemplated by his bid and its acceptance, the con-
tract will be reformed so as to express the true intent
of the parties, and he is entitled to recover for work
performed as a result of such mistakes. Lovell, 494.
XX. Where a contractor bids upon the construction of build-
ings to be erected on a site set out in the plans, and
the location of the buildings is afterwards changed
without proper authority, he is entitled to recover any
loss suffered by him by reason of such change. Id.
XXI. Where a contractor agrees to erect a building on an old
foundation and has a force ready to begin work on
contract time, and makes a bid at the defendant's
request to construct a new foundation which is re-
jected, and the Government, after unnecessary delay,
builds the foundation, the contractor may recover
|