The business of fire insurance is of such a peculiar character, so intimately connected with the prosperity of the whole community, and so vital to the security of property owners, that it is competent for the State to forbid combinations and agreements among fire insurance companies doing business within its limits, in reference to rates, agents' commissions and the manner of transacting their business. If, in the judgment of the State, the people who desire insurance upon their property are put at a disadvantage when confronted by a combination or agreement among insurance companies, I do not perceive any sound reason why, preserving the individual right of contracting, it may not forbid such combinations and agreements, and thereby enable the insured and insurer to meet on terms of equality. Surely, the State could enact such a regulation with reference to companies organized under its own laws. If that be so, it cannot be that such a regulation may not be made applicable to foreign insurance companies doing business in the State only by its consent.

UNITED STATES v. UTAH, NEVADA AND CALIFORNIA STAGE COMPANY.

UTAH, NEVADA AND CALIFORNIA STAGE COMPANY v. UNITED STATES.

APPEALS FROM THE COURT OF CLAIMS.

Nos. 51 and 52. Submitted November 8, 1905.-Decided November 27, 1905.

In construing a contract for mail service in New York City, held that: The new and additional mail messenger or transfer service which the contractor could be required to perform under authority of the Postmaster General without additional compensation did not include a vast amount of additional work necessitated by the opening of a new post office not contemplated by either of the parties when the contract was made. The same principles of right and justice which prevail between individuals should control the construction and carrying out of contracts between the Government and individuals.

The contractor had a right to presume the Government knew how many stations were to be served; and, where the proposals positively specified that only two elevated railroad stations were to be served, the contractor was entitled to extra compensation for serving four stations notwithstanding the proposal required the bidders to inform themselves as to facts and stated that additional compensation would not be allowed for mistakes.

The contractor was not entitled to extra compensation for "foot service," carrying mails up and down steps at elevated railroad stations, as delivery at the foot of the steps would have been insufficient.

THIS is an appeal and cross-appeal from a judgment of the Court of Claims upon a demand for extra compensation in the performance of a contract made on December 21, 1892, between the United States, represented by the Postmaster General, and the Utah, Nevada and California Stage Company, for the rendition of certain covered regulation wagon, mail messenger, transfer and station service on mail route number 207,003, in the city of New York, for a term from July 1, 1893, to June 30, 1897. The advertisement contained certain instructions to bidders, a part of which is as follows: "The contractors under this advertisement will be required to perform, without additional compensation, any and all new or additional service that may be ordered from July 1, 1893, or at any time thereafter during the contract term, whether between post offices and railroad stations, between post offices and steamboat landings, between post offices and mail stations or between the several railroad stations, steamboat landings and mail stations now established or that may hereafter be established, whether caused by the establishment of new or by change of site of existing post offices, railroad stations, steamboat landings or mail stations within said cities or caused by the alteration of the routes made necessary by any other

reason.

"The statements of probable additional service that may be necessary on the routes under this advertisement are given so that bidders may be as fully advised as possible of the amount likely to be required. It will not, however, limit the

Statement of the Case.

199 U. S.

liability of the contractors to perform all service that may become necessary without additional pay.

"Bidders must inform themselves of the distances, the running time, the weight of the mails, the condition of hills, streets, toll bridges, ferries, and obstructions of all kinds, whereby expense may be incurred, and as to the probable increase, additional service, or changes likely to be rendered necessary. Claims for additional pay based on such grounds, or for alleged mistakes or misapprehensions as to the service required, or for bridges destroyed or ferries discontinued, cannot be considered."

The Stage Company, having submitted a proposal under this advertisement, was awarded the contract, and the same was duly entered into. Among other things it was stipulated:

"To take the mail from and deliver it into the post offices, mail stations and cars at such points and at such hours, under the directions of the postmaster at New York, N. Y., approved by the Postmaster General, as will secure dispatch and connections and facilitate distribution, and at the contractor's expense for tolls and ferriage.

"To perform all new or additional or changed covered regulation wagon, mail messenger, transfer, and mail station service that the Postmaster General may order at the city of New York, N. Y., during the contract term, without additional compensation, whether caused by change of location of post office, stations, landing, or the establishment of others than those existing at the date hereof or rendered necessary, in the judgment of the Postmaster General, for any cause, and to furnish such advance or extra wagons from time to time for special or advance trips as the Postmaster General may require, as a part of such new or additional service."

After the contract was entered into, Congress having made an appropriation for the purpose, a new distribution station was established at Forty-fourth street and Lexington avenue, in the city of New York, known as the Industrial Building station. At the time of the advertisement for proposals,

which resulted in the contract, to wit, on September 15, 1892, the service therein referred to involved the carrying of the mails for approximately 973,674.22 miles per annum. In the advertisement bidders were notified that the probable annual increase in such service would amount to 6,718.40 miles. Between the time of the advertisement and the time when complainant entered upon the performance of his contract additional service was required, which increased the amount of annual mileage to 1,012,604.54 miles. On August 22, 1893, an order was made by the Second Assistant Postmaster General, requiring additional mail service to supply the mail station at Forty-fourth street and Lexington avenue, as per certain statements attached to the order, and a further order was made on October 23, 1893, for additional mail station service. Under the arrangement ordered by the department, all first class matter (letters) previously collected in the district of Station H (removed into the Industrial Building from 156 East Fifty-fourth street) continued to be received and handled there; massed matter made up by the States for the East, North and West, which had previously been sent to the general post office for distribution, was sent to the Industrial branch to be distributed. South and West mail was taken there during the period within suit and assorted, and all of the second-class bulky matter of publishers above Fourteenthstreet, which had formerly been received at the general post office and Station O, was delivered at the Industrial Building; also, all third and fourth class matter, mailed in uptown stations, which had previously come to the general post office, was sent to the Industrial Building, relieving the general post office from handling that matter. The result of the orders aforesaid was that claimant was compelled to increase the number of wagon trips from October 25, 1893, to February 6, 1895, over and above what would have been the normal increase, and increased the distance to be traveled by the wagons, over and above the normal increase, 311,939 miles for the period from October 5, 1893, to February 6, 1895.

VOL. CXCIX-27

The Industrial Building was rented in March, 1893, for postal purposes, in order to relieve the general post office, which had become inadequate to accommodate the increased volume of business. Station H, on May 1, 1893, was moved from 156 East Fifty-fourth street into the Industrial Building. In connection with Station H there were inaugurated in the premises the district departments, variously known as district stations.

By establishing the distribution station in the Industrial Building, and issuing the orders above set forth, there was no diminution in the number and character of the runs to and from the general post office, nor was the mileage at said general post office thereby diminished. To perform this extra service to and from the Industrial Building the claimant was required to purchase from 80 to 100 additional horses, and from 32 to 33 additional wagons; to put on from 45 to 46 new runs, and to employ from 33 to 50 additional men-drivers, hostlers, etc. The orders resulted in such increased speed in carrying the mails from the Industrial Building to some of the railroad stations, that in obeying them it was necessary to violate the city ordinances as to the rate of speed; it largely increased the wear and tear on the wagons; it injured and shortened the period of usefulness of the horses, some of them dying from overexertion in hot weather by reason of the fast driving, made necessary by the short time allowed to make the various trips.

The increase of runs to the railroad stations outside the city of New York, made necessary by the establishment of the extra service from the Industrial Building, increased the necessary expenditure by the claimant, in the matter of ferry tolls, in the sum of $9,950.22.

At no time prior to the making of said bid, or prior to entering into said contract, was any intimation or information given by the defendants' officers to claimant that they contemplated or intended the establishment of a service at the Industrial Building.