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In Error to the District Court of the Unit- Article III, Act Oct. 6, 1917, provides for ed States for the Eastern District of Vir- compensation where death occurs in the line ginia. Transferred from the United States of duty. Section 305 declares: Circuit Court of Appeals for the Fourth Circuit under the Act of Congress Approved September 14, 1922.

Suit by Fred N. Crouch, guardian of Kathleen Konstovich, against the United States. Writ of error to the District Court to review an order dismissing the petition was transferred from the Circuit Court of Appeals, under Act Sept. 14, 1922. Remanded to Circuit Court of Appeals, with directions.

Messrs. James G. Martin and E. S. Merrill, both of Norfolk, Va., for plaintiff in error. Mr. Assistant Attorney General Donovan, for the United States.

Mr. Justice McREYNOLDS delivered the opinion of the Court.

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Under the Act of Congress approved October 6, 1917, c. 105, 40 Stat. 398, 409 (Comp. St. Ann. Supp. 1919, § 514k et seq.), the United States in February, 1918, issued to Stephen Konstovich a policy of insurance, *with Kathleen, his wife, as beneficiary. He went down with the Cyclops March 31, 1918, and the full amount of the policy, payable in monthly installments, was awarded to plaintiff Crouch as her guardian. Another award of $25 per month was made to him, as such guardian, on account of the husband's death. Payments were regularly made until July 12, 1921, when the Bureau of War Risk Insurance gave notice that the beneficiary had terminated her claims for both insurance and compensation by misconduct. Thereupon the guardian commenced this proceeding in the District Court. The petition prays for judgment against the United States and that they be directed to pay all installments which have or may accrue. The trial judge concluded that by misconduct the widow had terminated her right to the insurance as of September 17, 1920; further, that the United States had not consented to be sued upon the award of compensation; and it dismissed the petition, April 7, 1922. The cause went to the Circuit Court of Appeals. That court, being of opinion that it was without jurisdiction, transferred the proceeding here. 291 F. 1016. Act Sept. 14, 1922, c. 305, 42 Stat. 837 (Comp. St. Ann. Supp. 1923, § 1215a).

"That upon its own motion or upon application the bureau may at any time review an award, and, in accordance with the facts found upon such review, may end, diminish, or increase the compensation previously awarded, tinued, may award compensation." Comp. St. or, if compensation has been refused or disconAnn. Supp. 1919, § 514rrrr.

[1] No authority to sue the United States for compensation has been expressly granted, and that none exist under circumstances like those here presented is determined by Silberschein v. United States, 266 U. S. 221, 45 S. Ct. 69, 69 L. Ed. decided today. Article IV, Act Oct. 6, 1917, provides generally for the insurance of officers and enlisted men. Section *405:

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"That in the event of disagreement as to a claim under the contract of insurance between the bureau and any beneficiary or beneficiaries brought against the United States in the disthereunder, an action on the claim may be trict court of the United States in and for the district in which such beneficiaries or any one of them resides."

See Comp. St. Ann. Supp. 1919, § 514vvv.

Section 13, as added to Act Sept. 2, 1914, by section 2 of the Act of 1917, as amended by the Act of May 20, 1918, c. 77, 40 Stat. 555, 556 (Comp. St. Ann. Supp. 1919, § 514kk), includes the language just quoted from section 405.

[2] In United States v. Pfitsch, 256 U. S. 547, 41 S. Ct. 569, 65 L. Ed. 1084, we considered the question of jurisdiction under a statute similar to the one now before us and, in the course of discussion, pointed out that the Act of May 20, 1918, conferred upon district courts original jurisdiction over controversies arising out of claims against the United States under contracts of insurance. We adhere to the statement and hold that the applicable statutes in force when the present proceedings began did not authorize a direct writ of error from this court. The Circuit Court of Appeals had jurisdiction to review the challenged judgment.

Section 19 of the Act approved June 7, 1924, has no application to the present claim. The cause must be returned to the Circuit Court of Appeals with directions to proceed.

(266 U. S. 243)

(45 S.Ct.)

circumstances existing at time of negotiations, MILLER, Alien Property Custodian, et al. v. and not from single sentence.

ROBERTSON.

ROBERTSON v. MILLER, Alien Property Custodian, et al.

(Argued May 1, 2, 1924. Decided Nov. 17, 1924.)

Nos. 35, 145.

1. War 12-Provision of Trading with the Enemy Act should be liberally construed.

Trading with the Enemy Act, § 9 (Comp. St. 1918, Comp. St. Ann. Supp 1919, § 31151⁄2e), providing for suit to establish "debt" owing from alien enemy, to which Alien Property Custodian or Treasurer of the United States shall be made party defendant, is highly remedial and should be liberally construed, and purpose thereof should not be defeated by narrow interpretation.

2. War 12-"Debt," within Trading with the Enemy Act, providing for suit to establish debt, held not restricted to demands enforceable by action of debt.

Trading with the Enemy Act, § 9 (Comp. St. 1918, Comp. St. Ann. Supp. 1919, 8 31151⁄2e), providing for suit to establish debt owing from alien enemy, to which Alien Property Custodian or Treasurer of the United States shall be made party defendant, held not restricted to demands for which actions of debt may be maintained.

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natural and ordinary sense.

Words of statutes are to be read in natural and ordinary sense, giving them a meaning to their full extent and capacity, unless some strong reason to the contrary appears.

4. War 12-Seller's right to damages for breach of contract held "debt," within Trading with Enemy Act.

Seller's right to damages for breach of contract to purchase zinc ore held "debt," within Trading with the Enemy Act, § 9 (Comp. St. 1918, Comp. St. Ann. Supp. 1919, § 31151⁄2e), providing for suit against Alien Property Custodian or Treasurer of the United States to establish "debt."

[Ed. Note.-For other definitions, see Words and Phrases, First and Second Series, Debt.] 5. Contracts 10(4)-Contract for sale of

ore held not void for lack of mutuality and

want of consideration.

Contract binding seller for definite period of time to dispose of ore in manner provided for by the contract, requiring seller to deliver and buyer to accept and pay for all ore of specified grade to be produced by seller,

giving buyer option on lower grade of ore and contemplating increase in output by completion of new plant and use of new equipment and methods, held not void for lack of mutuality and want of consideration.

6. Contracts 147(3) Contract construed according to whole instrument, and not single sentence.

Intention of parties is to be gathered from the whole instrument. read in the light of the

7. Sales 52 (5)-Opinion of seller's manager as to seller's obligations expressed after execution not considered on question of validity.

Opinion of seller's manager as to seller's legal obligations under the contract, as reflected by statements in correspondence after execution thereof, is not entitled to weight in determining validity of contract.

8. Sales181 (11)-Evidence held to prove weekly shipments of ore in compliance with contract.

Evidence held to show seller's compliance with contract providing for weekly shipments of ore.

9. Corporations

378-Contract by one subsidiary corporation held not to affect contract of other subsidiary corporation not party.

Where two subsidiary corporations of a third corporation had separate general managers and operating staffs, and neither had control over the other, or authority to sell other's product, a contract by one for sale of ore, was not affected by other's contract, to which neither first corporation nor its buyer were parties.

10. Sales 384 (7)-Profits made by corporation on purchase of subsidiary corporation's ore should not be charged against subsidiary corporation in determining its damages for third party's breach of contract to to purchase ore.

Profits made by one corporation, on sale to it by its subsidiary corporation of ore which subsidiary corporation had contracted to sell to third party, on third party's breach of the contract, should not be charged against subsidiary corporation in determining damages sustained by subsidiary corporation because of such breach of contract, in view of showing that first corporation could have purchased ore in the market on equally favorable terms.

11. War 12-Seller, suing under Trading with Enemy Act to establish debt created by buyer's breach of contract, held entitled to interest from time of demand.

Enemy Act, § 9 (Comp. St. 1918, Comp. St. In seller's suit, under Trading with the

Property Custodian and United States Treasurer, to establish as a debt damages sustained from breach of contract of purchase, interest was allowable from date of seller's demand on buyers for difference between contract price and amount received on resale; the rule of sovereign immunity from liability for interest under Judicial Code, § 177 (Comp. St. § 1168), being inapplicable.

Ann. Supp. 1919, § 3115%e), against Alien

12. Damages -Compensation fundamental principle of damages.

Compensation is fundamental principle of damages, whether action is in contract or in tort.

For other cases see same topic and KEY-NUMBER in all Key-Numbered Digests and Indexes

13. Damages
naturally from breach of contract recov-
erable.

One who fails to perform us contract is justly bound to make good all damages that accrue naturally therefrom, and other party is entitled to be put in as good a position pecuniarily as he would have been by performance

of the contract.

22 Damages that accrue Frederick Y. Robertson, is a citizen of the United States, and sued as assignee of the Mammoth Copper Mining Company, a Maine corporation, hereinafter called the "seller." The defendants are the Alien Property Custodian, the Treasurer of the United States, and five citizens of Germany, enemies of the United States, as defined by the act, copartners doing business under the name of Beer, Sondheimer & Co., and hereinafter called the "buyers." The purpose of the suit is to establish a "debt" plaintiff claims to be owing from the enemy defendants on account

14. Interest 9-Recoverable where one has had use of money owing to another.

One who has had the use of money owing to another justly may be required, both in law and in equity, to pay interest from time payment should have been made.

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of damages alleged to have resulted *to the 15. Damages 67-Rule as to allowance of seller from the buyers' breach of a contract interest of unliquidated damages stated.

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17. Sales 384 (7) Seller not entitled to charge against buyer, on account of expense of resale, amount in excess of that paid.

On buyer's breach of contract and resale by seller, seller was not entitled to charge against buyer, on account of expense of resale, anything in excess of amount paid.

for the purchase of zinc ore.

The contract provided:

"The product covered by this contract is the total production of zinc crude ore shipped by the seller from its properties in Shasta county, California. The buyer is not obligated to accept any of the product running less than thirty-three (33%) per cent. metallic zinc. Should the seller produce a zinc product running less than thirty-three (33%) per cent. metallic zinc, the buyer reserves the option to purchase same under the terms of this contract. If the buyer should not elect to accept such product, the seller has the privilege of disposing of it elsewhere. This contract shall run for a period of one year from the date of first shipment made after the completion of the picking plant which the seller contemplates building, but in no event shall the life of the contract exceed eighteen (18) months from the date of its execution."

Places of delivery were provided for, and the seller agreed to bear freight charges to Appeals from the United States Circuit Bartlesville, Okl., or their equivalent. ShipCourt of Appeals, Second Circuit.

Suit by Frederick Y. Robertson against Thomas W. Miller, as Alien Property Custodian, Frank White, as Treasurer of the United States, and others. Decree for plaintiff for a part of the debt claimed was modified and affirmed by the Circuit Court of Appeals (286 F. 503), and plaintiff and the named defendants appeal. Affirmed.

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*The Attorney General and Mr. Lindley M. Garrison, of Jersey City, N. J., for appellant Miller.

Messrs. Alfred Sutro, E. S. Pillsbury, and Frank D. Madison, all of San Francisco, Cal., Charles W. Stockton, of New York City, H. D. Pillsbury and Oscar Sutro, both of San Francisco, Cal., and Kenneth E. Stockton, of New York City, for appellant Robertson.

ments were to be made in as nearly as possible equal weekly quantities. The prices were $19 per ton for ore containing 40 per cent. metallic zinc, based on a spelter price of $5 per hundredweight at St. Louis, to be increased $1 per ton for each unit of one per cent. over, and to be decreased correspondingly for each unit below, 40 per cent., and also to be increased or decreased 5 cents per ton for each cent the market price of spelter at St. Louis rose above or fell below $5 per hundredweight. And it was provided that:

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Mr. Justice BUTLER, delivered the opin- ping the ore hereby contracted for, shall not ion of the Court. be under any duty or obligation to furnish ore while * to the buyer * SO prevented or delayed, and the buyer if so prevented or delayed in receiving or treating the ore hereby contracted for, shall not be under any duty or obligation to receive any of the ore hereby contracted for, while so prevented

This is a suit brought under section 9 of the Act of Congress, approved October 6, 1917, known as the "Trading with the Enemy Act," 40 Stat. 411, 419, c. 106 (Comp. St. 1918, Comp. St. Ann. Supp. § 31151⁄2e). The plaintiff below,

For other cases see same topic and KEY-NUMBER in all Key-Numbered Digests and Indexes

(45 S.Ct.)

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The District Court gave judgment in favor of the seller for $259,597.21 with costs. On appeal by the Custodian and Treasurer, and a cross-appeal by the plaintiff (Judicial Code, § 128 [Comp. St. § 1120]), the Circuit Court of Appeals affirmed the decree, except that the amount of interest allowed by the trial court was increased. Robertson v. Miller, 286 F. 503. The Custodian and Treasurer have appealed to this court. Judicial Code, § 241 (Comp. St. § 1218). They contend that plaintiff's claim was not a "debt" within the meaning of section 9 of the act; that the alleged contract was lacking in mutuality and void for want of consideration; that the seller broke the contract by refusing to make shipments "in as near as possible equal weekly quantities"; that the contract was not enforceable because made in violation of an earlier contract for the sale of the same ore; that no more than nominal damages should have been awarded; and that the lower court erred in allowing interest. The plaintiff has appealed and contends that the lower courts erred in giving the buyers credit for the amount by which the freight charges on the ore resold were less than they would have been if the ore had been shipped under the contract. The enemy defendants did not appear in the case, and it has been stipulated that the decree will not be enforced against them personally.

losses and inconvenience liable to result to non-enemy persons. This provision is highly remedial and should be liberally construed to effect the purposes of Congress and to give remedy in all cases intended to be covered. United States v. Anderson, 9 Wall. 56, 65, 66, 19 L. Ed. 615; United States v. Padelford, 9 Wall, 531, 538, 19 L. Ed. 788. The just purPose of the section is not to be defeated by a narrow interpretation or by unnecessarily restricting the meaning of the word within technical limitations. United States v. Freeman, 3 How. 556, 565, 11 L. Ed. 724; Danciger v. Cooley, 248 U. S. 319, 326, 39 S. Ct. 119, 63 L. Ed. 266; French v. Weeks, 259 U. S. 326, 328, 42 S. Ct. 505, 66 L. Ed. 965.

Appellants contend that "debt," as used in section 9, is limited to its common law meaning. Undoubtedly, Congress intended to include causes of action which at common law were enforceable in an action of debt,

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such as those arising *on bonds, notes, and other express promises to pay (Raborg v. Peyton, 2 Wheat. 385, 4 L. Ed. 268; United States v. Colt, 25 Fed. Cas. 581, No. 14,839), quantum meruit, and quantum valebat (Smith v. First Congregational Meetinghouse, 8 Pick. [Mass.] 178, 181; Norris v. School District, 12 Me. 293, 297, 28 Am. Dec. 182; Jenkins v. Richardson, 6 J. J. Marsh. [Ky.] 441, 22 Am. Dec. 82; Mahaffey v. Petty, 1 Ga. 261, 264).

The meaning of the word "debt," as used in many statutes, is not restricted to demands enforceable in actions of debt. Lord Coke, referring to the statute of Merton (A. D. 1235), said (Institutes, volume 2, page

1. Is plaintiff's claim a "debt" within the 89): meaning of section 9 of the act?

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*This section gives to "any person, not an enemy, or ally of enemy to whom any debt may be owing from an enemy, or ally of enemy" the right "to institute a suit in equity in the District Court

(to which suit the Alien Property Custodian or the Treasurer of the United States, as the case may be, shall be made a party defendant), to establish the * * claimed. * * *""

debt

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"Debitum signifieth not only debt, for which an action of debt doth lie, but here in this ancient act of parliament, it signifieth generally any duty to be yielded or paid.

Chief Justice Shaw, referring to a statute making members of a corporation liable for its "debts," said (Mill Dam Foundery v. Hovey, 21 Pick. [Mass.] 417, 455):

"For, though a question was made, whether such a claim for unliquidated damages is a debt, within the meaning of the statute, we do not think it admits of a reasonable doubt, that all such claims for damages were intended to be included in the term debts.'"

A cause of action for damages for breach

of the Bankruptcy Act, and of laws relating to attachments, to receiverships, to stockholders' liability for corporate debts, to probate, to set-offs, to fraudulent conveyances. and to limitation of actions.1

[1] At the time of the passage of the act, a large amount of property was owned and much business was carried on by alien enemies and their allies in this country. Congress determined that their property should of contract is a debt within the meaning be taken over and that trade with them should cease. The purpose was to weaken enemy countries by depriving their supporters of power to give aid. But the seizure of the money and property of enemies and their allies would tend to hinder and might embarrass or ruin those having business transactions with them. By the taking, the prop erty seized would be put out of reach of persons claiming it and beyond the power of creditors to attach it for debt. The purpose of section 9 was to prevent or lessen

1 Bankruptcy Act: Central Trust Co. v. Chicago Auditorium Ass'n, 240 U. S. 581, 592, 36 S. Ct. 412, 60 L. Ed. 811, L. R. A. 1917B, 580. Compare R. S. §§ 1237, 1610, 2296, 4537 (Comp. St. §§ 2018, 2927, 4551, 8326). Attachment laws: Fisher v. Consequa, 9 Fed. Cas. 120, No. 4816; New Haven Saw-Mill Co. v. Fowler, 28 Conn. 103, 108; Showen v. J. L. Owens Co., 158 Mich. 321, 334, 122 N. W. 640, 133 Am. St. Rep.

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[2, 3] *There is nothing in the language of the act or the reasons for its enactment to indicate a purpose to restrict the right to institute suits in equity as authorized in section 9 to causes of action cognizable in debt under technical procedural rules. The words of a statute are to be read in their natural and ordinary sense, giving them a meaning to their full extent and capacity, unless some strong reason to the contrary appears. Birks, App., Allison, Resp., 13 C. B. (N. S.) 12, 23; Minor v. Mechanics' Bank, 1 Pet. 46, 64, 7 L. Ed. 47; De Ganay v. Lederer, 250 U. S. 376, 381, 39 S. Ct. 524, 63 L. Ed. 1042. [4] We think it immaterial whether plaintiff's cause of action is one for which an action of debt might be maintained. It would be unreasonable and contrary to the intention of Congress to exclude claims like that here in question, and we hold them to be included.

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[5] 2. Was there a lack of mutuality and want of consideration? Appellants contend that the parties failed to make a contract, and asserted the seller promised only such ore as *it might ship from the mine and was not bound to ship all the ore produced or to mine or ship any ore. They also argue that certain statements made by the seller's manager, in correspondence between him and the agent of the buyers, after the instrument was signed, show that the seller itself so interpreted the writing. The provision to which they refer is this: "The product covered by this contract is the total production of zinc crude ore shipped by the seller from its properties in Shasta county, California." The statements of the manager 376; Hyman v. Newell, 7 Colo. App. 78, 80, 42 P.

1016; Hunt v. Norris, 4 Mart. O. S. (La.) 517, 532; Wilson v. Wilson, 8 Gill (Md.) 192, 194, 50 Am. Dec. 685; Baumgardner v. Dowagiac Mfg. Co., 50 Minn. 381, 52 N. W. 964; Cheney v. Straube, 35 Neb. 521, 53 N. W. 479; Barber v. Robeson, 15 N. J. Law, 17, 19; Lenox v. Howland, 3 Caines (N. Y.) 323; Ward v. Howard, 12 Ohio St. 158, 163; Peter v. Butler, 1 Leigh (Va.) 285; State v. Superior Court, 93 Wash. 98, 101, 159 P. 1193. Receivership laws: Kalkhoff v. Nelson, 60 Minn. 284, 290, 62 N. W. 332; Rosenbaum v. Credit System Co., 61 N. J. Law, 543, 548, 40 A. 591; Steel & Iron Co. v. Detroit R. Co., 154 Mich. 182, 185, 117 N. W. 645. Stockholders' liability laws: Mill Dam Foundery v. Hovey, 21 Pick. 417, 455; American Ice Cream Co. v. Economy Laundry Co., 148 Ga. 624, 97 S. E. 678; Dryden v. Kellogg, 2 Mo. App. 87, 93; Green v. Easton, 74 Hun (N. Y.) 329, 330, 26 N. Y. S. 553. Probate laws: Frazer v. Tunis, 1 Binney (Pa.) 254, 263; Insurance Co. v. Meeker, 37 N. J. Law, 282, 300, et seq.; Hebert v. Handy, 29 R. I. 543, 72 A. 1102. Set-off: Moore v. Weir, 3 Sneed (Tenn.) 47, Russell v. Miller, 54 Pa. 154, 164. Fraudulent conveyances: Woodbury v. Sparrell Print, 187 Mass. 426, 428, 73 N. E. 547; Anderson v. Anderson, 64 Ala. 403, 405. Statutes of limitation: Davies v. Texas Central R. R. Co., 62 Tex. Civ. App. 599, 605, 133 S. W. 295. See also Irving Bank-Columbia Trust Co. v. New York R. Co. (D. C.) 292 F. 429, 433; Lothrop v. Reed, 13 Allen (Mass.) 294; State v. Sayre, 91 Ohio St. 85, 94, 109 N. E. 636; Little v. Dyer, 138 111. 272, 277, 27 N. E. 905, 32 Am. St. Rep. 140; Allen v. Distilling Co. of America, 87 N. J. Eq. 531, 539, 100 A. 620; Melvin v. State, 121 Cal. 16, 24, 53 P. 416.

50;

were made in October and November, 1914, in answer to inquiries of the buyers' agent, and were to the effect that the tonnage of ore to be shipped depended altogether on the market price of spelter, and that with spelter quotations below $5 per hundred weight shipments would be very light, and that if prices rose above that figure, the seller would probably ship about 200 tons

per month.

[6] The intention of the parties is to be gathered, not from the single sentence above quoted, but from the whole instrument read in the light of the circumstances existing at the time of negotiations leading up to its execution. The buyers had a large business in the smelting of zinc ore in the United States. The seller had been engaged for a long time in the mining of copper ore from the Mammoth mine. Early in 1914, there was discovered in that mine a large body of zinc ore, containing about 40,000 tons. The sellers desired to dispose of, and the buyers wanted, zinc ore. While there had been no regular weekly or monthly production or shipments prior to the signing of the writing, the seller had made a number of shipments to the buyers. The work of developing the ore body in preparation for production was in progress. The mine was already equipped and capable of producing ore. The writing shows that the completion of a picking plant was contemplated. The year covered was to commence on the date of the first shipment after its completion. When *the instrument was executed, September 29, 1914, both parties knew the quality of the ore and that the quantity was substantial.

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The parties intended to make a contractone to sell, and the other to buy, zinc ore. By plain statements and manifest implications, the seller was bound for a definite time not otherwise to dispose of its ore; the buyers were given an option on the lower grade ore; the seller was bound at all times, when not prevented or delayed by some cause beyond its control, to mine and to ship to the buyers the total production of zinc ore of the specified grade; and the buyers were bound to take and pay for all such ore when not prevented or delayed by causes beyond their control as specified in the contract. The quantities of ore to be mined and shipped were not limited to those to be produced by the equipment and methods employed at the time of the execution of the contract. The proposed picking plant was to be added, and increased output was expected and bargained for.

[7] The opinion of the manager of the seller as to its legal obligations under the contract, as reflected by his statements in correspondence after the execution of the instrument, is not entitled to any weight in determining whether a valid contract was made. The writing did not give the seller

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