Jacksonville, Pensacola & Mobile R. Co. v. United States - 118 U.S. 626 (1886)
U.S. Supreme Court
Jacksonville, Pensacola & Mobile R. Co. v. United States, 118 U.S. 626 (1886)
Jacksonville, Pensacola and Mobile
Railroad Company v. United States
Argued October 21, 1886
Decided November 1, 1886
118 U.S. 626
A railroad company in aid of whose road Congress grants land upon condition that it shall transport mails at such price as Congress may direct, and that until the price be thus fixed, the Postmaster General shall have power to determine the same, is (in the absence of contracts with the department for special service with unusual facilities, or for determined periods) bound to transport mails (until Congress directs the rates) at such reasonable compensation as the Postmaster General may from time to time prescribe, and the continuance by such company to transport mails after the expiration of the term of a written contract neither implies that it is, after the Postmaster General has otherwise directed, to be paid the same rates for transportation which it was paid under the written contract, nor that the contract is renewed for any specific term for which contracts of the Post Office Department may usually be made.
This was an appeal from the Court of Claims. The case is stated in the opinion of the Court.