Hoyt v. United States
51 U.S. 109 (1850)

Annotate this Case

U.S. Supreme Court

Hoyt v. United States, 51 U.S. 10 How. 109 109 (1850)

Hoyt v. United States

51 U.S. (10 How.) 109

Syllabus

When Treasury transcripts are offered in evidence under the Act of March 3, 1797 1 Stat. 512, although they are not evidence of the indebtedness of the defendant as to money which comes into his hands out of the regular course of official duty, yet they are so when they arise out of the official transactions of a collector with the Treasury, and are substantial copies of his quarterly returns, rendered in pursuance of law and the instructions of the Secretary.

These transcripts need not contain the particular items in each quarterly return; it is sufficient if they state the aggregate amount of bonds and duties accruing within the quarter and refer to an abstract containing the particular items.

This rule can work no surprise upon the defendant, because every item which is litigated must have been previously presented to the accounting officers of the Treasury and been by them rejected. The items must be known, therefore, to the defendant.

The Acts of 1802, 2 Stat. 172, § 3, and March, 1822, 3 Stat. 694, 695, § 3, 7, limit the annual compensation of the collector to a certain sum. This limitation includes the fees as well as commission.

The act of 1838, 5 Stat. 264, provides that the collector shall return an account under oath of these fees to the Treasury, and the act also limits the compensation. The fees therefore cannot be claimed in addition to the compensation. In the case in question, the time of service of the collector was whilst this act was in force, as it was extended by the acts of 1839, 1840, and 1841, and to 2 March of that year.

The acts above mentioned do not deprive the collector of his share in fines, penalties, and forfeitures. He is allowed to claim this share in addition to his annual compensation.

But this share does not include a claim to a part of the duties upon merchandise which has been seized and in order to regain the possession of which the owner has given a bond for the payment or securities of the duties, as well as for the appraised value of the merchandise itself. In case of condemnation, the collector is entitled to a share of the proceeds of the merchandise, the thing forfeited, but not to a share of the duties also. These are secured for the exclusive benefit of the government.

Nor is a collector entitled to a commission for accepting end paying drafts draws upon him by the Treasury Department. The act of 1799 made it his duty to receive all money paid for duties and pay it over upon the order of the officer authorized to direct the payment, and the eighteenth section of the Act of 1822 and the Act of 1839, 5 Stat. 349, contain limitations which forbid an allowance beyond the compensation prescribed by law.

The collector does not appear, by the evidence, to have been charged twice with the amount of unascertained duties at the Treasury Department, and therefore the court properly refused to submit the point to the jury.

The United States brought an action of assumpsit in the court below against the plaintiff in error. The declaration contained four counts -- viz., for money lent and advanced, for money laid out and expended, for money had and received, and upon an account stated. The general issue was pleaded and joined. The cause came on for trial at the April term, 1843, before Mr. Justice Thompson and Judge Betts, when a verdict was found for the United States and a judgment entered upon the verdict on 7 May, 1843, for $221,083.39, including damages, costs, and charges. A bill of exceptions was taken during the progress of the trial, which was signed

Page 51 U. S. 110

by Judge Betts on 9 October, 1847, Mr. Justice Thompson having died in the interval between the trial of the cause and the time when the bill of exceptions was signed. The writ of error was sued out on 3 February, 1847, several months before the signing of the bill of exceptions.

Upon the trial, the plaintiffs below introduced evidence to prove that the defendant was appointed collector of the port and district of New York on 29 March, 1838, and that he ceased to be such collector and went out of office at the close of 2 March, 1841, and then gave in evidence certain transcripts under the seal of the Department of the Treasury of the United States, and thereupon rested the case on their part. These transcripts are intended to be statements made up by the accounting officers of the Treasury Department from the quarterly accounts rendered by the officer with whom the account is kept, after an examination and adjustment of such quarterly accounts, and the allowance or disallowance of the several items contained therein.

After the counsel for the plaintiffs below had rested their case, it was objected on the part of the defendant below that the said plaintiffs had not shown enough to entitle them to rest their case without producing other evidence in support of said transcripts, because --

1. The law relating to Treasury transcripts, which, under some circumstances, gives them the effect of evidence, does not apply to accounts of the description contained in the transcripts offered.

2. That in order to constitute the transcripts legal evidence, they must specify the particular items which are made the ground of claim, and not aggregated items, a balance which in the present case makes up the principal part of the claim contained in the transcripts offered.

3. That the statute does not apply to collections made on account of the government, but to money advanced by it to public agents.

4. When the ground of claim on the part of the government arises not out of payments or advances by it, but out of accounts rendered by a public agent of money collected for the government, the accounts themselves must be introduced as the highest evidence.

The court decided that the transcripts were in conformity to the statute and were legal evidence, to which decision the counsel for the defendant excepted.

The counsel for the defendant then called upon the counsel for the plaintiffs for the original letters from the defendant to the First Auditor and Comptroller of the Treasury, under date

Page 51 U. S. 111

of 30 June, 1841, which accompanied the defendant's last quarterly account, and the same not being produced, the defendant, among other matters to maintain the issue on his part, introduced and read in evidence copies of said letters, in the words and figures following:

"Custom House, New York, June 30, 1841"

"SIR -- Herewith you will receive in thirteen packages the accounts of the customs of this district from the first of January to the 2d of March in the first quarter of 1841, as per account current and memorandum of papers enclosed, said period being the termination of my accounts as collector of the District of New York. The account current is prepared by the auditor of the custom house, with the exception of the item of commission for accepting and paying Treasury drafts, which I have directed to be inserted; this account, as well as other accounts heretofore transmitted to the department, has been prepared in the auditor's office, none of which have undergone my personal examination, they having been signed by me when presented."

"This account, or those which have preceded it, contains some radical error or errors to a large amount. Where the errors are to be found or the best probable mode of undertaking to detect them I am unable at this moment to determine, but request that a thorough examination may be made at the department with the view of testing the accuracy of present and past accounts, and I shall direct my efforts to discover them here."

"At the time of the passage of the law requiring all money received on deposit for unascertained duties to be immediately paid into the Treasury, I received a circular from the department containing instructions relative to the accounts to be kept under that law. The circular bears date 13 March, 1839, and, alluding to an account for excesses of deposits, contains this clause: 'This account has no connection, immediate or remote, with your account of the customs.'"

"The amount I have paid to the merchants for such excesses, and have also credited in the accounts of the customs to the United States, is over $109,000. I early objected to this credit, as will be seen by my letter to the Comptroller under date of 14 February, 1840, and my mind has never been satisfied with the reasons assigned by the Comptroller in his letter of April 11, 1840, for the change in the direction originally given by the circular referred to. I most earnestly request that the principle involved in this question may be carefully examined. "

Page 51 U. S. 112

"The balance of the money which was paid to me under protest amounts to $189,871.17. The suits brought for the recovery of the same are against me as an individual, for which I am liable, upon the recovery of judgments under execution, and am compelled to rely upon and wait for the justice of the government for protection in indemnification."

"Very respectfully, your obedient servant,"

"J. HOYT, Late Collector"

"TO JESSE MILLER, ESQ., First Auditor &c."

"Custom House, New York, 30, 1841."

"SIR -- It was not until yesterday at near three o'clock that I procured the signature of Mr. Morgan, my successor in office, to the abstracts of bonds delivered by me to him, without which my final accounts could not be forwarded. I send them today to the First Auditor of the Treasury with a letter, a copy of which I now enclose to you as the head of the accounting department of the government. I have to request that you will be so good as to acknowledge the receipt of this letter with its enclosure. I hope by the time the First Auditor shall have examined the accounts now sent him that you will have had leisure to look at my account of fines, penalties, and forfeitures, about which I wrote you some months since."

"With great respect, your obedient servant,"

"J. HOYT, Late Collector"

"TO WALTER FORWARD, ESQ., Comptroller"

The counsel for the defendant here called upon the counsel for the plaintiffs, in pursuance of notice for that purpose given, for the respective quarterly accounts of defendant, rendered to the Treasury Department for his whole term of office, and the same were produced and read in evidence by the defendant.

The accounts introduced are the following, placed in the following order:

1. The third quarter account of 1838.

2. The first quarter account of 1839.

3. The second quarter account of 1839.

4. The first quarter account of 1840, including expenditures for lighthouse on Robbin's Reef.

5. statement of fees of office and disbursement, for the year 1839.

6. Schedule of weekly balances to credit of Treasurer.

7. Schedule of Treasury drafts taken up by defendant.

8. Weekly return of collector, November 24, 1838.

9. J. Hoyt's account with Treasurer, November 24, 1838.

10. Weekly return, June 16, 1838.

Page 51 U. S. 113

These accounts are too voluminous to be inserted, and would rather perplex than lead to an understanding of the points discussed by the counsel and decided by the court. It is proper, however, to state that some of the items credited by the defendant to the United States were for unascertained duties, and also that in the schedule of Treasury drafts taken up at the custom house, New York, and returned to the Treasurer there were many on war and navy warrants.

The counsel for the defendant then put in evidence certain documents referred to in the quarterly account current of defendant, bearing date 31 March, 1838, and particularly the abstract of bonds or bond books purporting to represent the number and amount of bonds transferred to the defendant by Samuel Swartwout, the former collector.

Witnesses were called by the defendant who testified to certain errors in the amount of bonds purporting to have been received by Mr. Hoyt of his predecessor in office. These witnesses stated the circumstances under which the errors were discovered, and that no examination was made, for want of time, of any of the bonds except those received from Mr. Swartwout. That about one hundred thousand bonds were taken for duties by Mr. Hoyt while in office, and the time it would take to test the accuracy of these bonds would be very great. That the bonds transferred to Mr. Hoyt by Mr. Swartwout formed about one-tenth part of the subject of bonds.

In the further progress of the trial, a witness, Wm. Moore, was called for the defendant for the purpose of showing that bonds had been abstracted from the custom house without the knowledge of the collector, and that some of them had found their way to Switzerland, and that the witness, as one of a commercial house, had paid at the custom house three several bonds of the firm of E. & G. Fehre & Co., then in Europe, to the amount of $3,290, who had become possessed of the same without having paid them, and that long after such possession, the said firm directed the payment to be made, and it was made by the house to which witness belonged.

The counsel for the plaintiff objected to the testimony of this witness, and the court sustained the objection, and the counsel for the defendant excepted.

Testimony was introduced on the part of the defendant to the effect that the duties of the collector were such that he could not make a personal examination of the quarterly accounts, but signed them as made up by his subordinates; that the defendant had no personal agency in the receipt or disbursement of the money at the custom house; that it is the

Page 51 U. S. 114

duty of the naval officer to examine the accounts, and that this is intended as a check upon the collector's accounts; that the amount of duties on each entry is ascertained from calculation, for which the cashier must receive either the cash or a bond; that the entries are scattered through the impost book and cash books, and that it would take a long time to examine all the entries; that the quarterly accounts are but results, derived from a mass of particulars.

The record contained a series of letters from Mr. Hoyt to the Treasurer of the United States and different officers of the Treasury Department, in which he frequently complained of the rejection of particular items of credit in his quarterly accounts, sometimes maintaining a different view of the law from that adopted by the department, particularly in a letter dated 14 November, 1839, to I. N. Barker, wherein he contends that he is entitled by law to charge fees and emoluments for the whole year 1838, though he did not enter upon the duties of his office till 29 March of that year, and sometimes complaining of the manner in which his accounts were stated at the department. These letters were read in evidence for the defendant.

After which, letters from Mr. Hoyt to the First Comptroller, dated 12 and 22 December, 1842, and 17, 25, and 28 January, 1843, were offered in evidence for the defendant. Upon the counsel for the plaintiffs asking the object in offering said letters, and upon being informed by the counsel for the defendant that all of said letters related to the naval office returns under the circular of 15 March, 1839 except that 25 January, and that the object was to show that there were no copies of such returns on file in the naval office, and that the defendant had sought explanation from the Comptroller, in the letters referred to, regarding such returns, and had received no answers to such letters, and that said letter of 25 January related to items in the last transcript, in regard to which the defendant had also sought information from the Comptroller, and had received no reply; the counsel for the plaintiffs objected to the reading of said letters, and the court decided the objection to be well taken, as the defendant was not bound to go to trial without getting the explanation, and the court would not have compelled him so to do, and it was therefore a waiver of his right. Whereupon the counsel for the defendant excepted to such decision.

It was admitted that the defendant had received as profit on a storage account, while he was in office, the sum of $30,000, and the like amount for his share of forfeitures.

It appeared by the accounts connected with the Treasury

Page 51 U. S. 115

transcripts, that the defendant had given three bonds to the United States, one dated March 22, 1838, one dated 30 November, 1838, and one dated 14 December, 1839.

The court below requested that it might be furnished with a statement in writing of the claims of both parties, and the counsel for the respective parties introduced and laid before the court and jury the following statements.

The plaintiffs' counsel furnished to the court and jury a statement of the amount of balance as struck by the Comptroller, and the items of the account rejected by the Comptroller, as follows:

Balance of account as certified . . . . . . . . . . . . $226,295.60

1. Duties claimed as forfeiture for fourth quarter,

1838, and first and third quarters of 1839.

Allow two-thirds the amount distributed. . . . . . 5,749.15

2. Revenue cutter disbursements, Lieutenants

Brushwood and Shattuck . . . . . . . . . . . . . . 7.50

3. Overcharge for commissions . . . . . . . . . . . . . 0.55

4. Revenue cutter disbursements, Lieutenant Frazier . . 62.62

5. Amount overcharged for marker's expenses . . . . . . 254.97

6. Paid Lieutenant Shattuck . . . . . . . . . . . . . . 6.06

7. George A. Wasson and others. . . . . . . . . . . . . 1,516.33

8. Another for same person. . . . . . . . . . . . . . . 251.00

9. Expenses paid measurers and gaugers not legal,

but allowed because paid under order of

Secretary of Treasury. . . . . . . . . . . . . . . 9,543.43

10. Costs paid B. F. Butler . . . . . . . . . . . . . . 5,229.98

11. Costs in case of David Hadden and others. . . . . . 213.03

12. Four cases v. Hoyt suspended. . . . . . . . . . . . 175.00

13. Overcharged for bonds in suit cancelled

by warrant from Secretary of Treasury . . . . . . 1,203.45

14. Charged in first quarter, 1841, expenses

of fire commissioners . . . . . . . . . . . . . . 180.50

15. Emolument claimed for 1838. The claim is

for whole compensation for part of the

year ensuing. . . . . . . . . . . . . . . . . . . 1,063.84

16. Charged by him for fees . . . . . . . . . . . . . . 36,212.71

17. Amount overcharged for lighthouse

disbursements . . . . . . . . . . . . . . . . . . 70.48

18. Commissions for accepting and paying drafts of

Treasurer . . . . . . . . . . . . . . . . . . . . 201,580.00

19. Duty on goods seized for undervaluation, not

credited or accounted for . . . . . . . . . . . . 14,035.29

The defendant introduced the following statement:

Page 51 U. S. 116

Amount claimed by the United States for official

transcripts . . . . . . . . . . . . . . . . . . . . . $226,295.60

Deduct difference in commission consequent on

other differences . . . . . . . . . . . . . . . . . . 963.00

-----------

Apparent claim of United States . . . . . . . . . . . . $225,332.60

Against which the defendant has shown errors, viz.:

Smith, Thurgar & Co., twice charged . . . . $ 1,703.33

Specific errors in books. . . . . . . . . . 33,853.87

Specific errors in quarterly accounts

current . . . . . . . . . . . . . . . . . 109,469.05

Amount actually expended in public

business now disputed by the U. States. . 17,594.03

Duties part of forfeiture . . . . . . . . . 19,784.45

Fees in controversy, $ 1,063.84,

$36,212.71. . . . . . . . . . . . . . . . 37,276.55

Balance exclusive of claim for commission . 5,651.32

---------- 225,332.60

Against the apparent balance of $5,651.32, Mr. Hoyt claims commissions, $201,580.

The counsel of the defendant prayed the court to instruct the jury, among other things, as matters of law, as follows:

1. The official transcript and accounts current on which it is founded are only prima facie evidence against the defendant, and do not preclude him from proving that they do not exhibit the true State of his liability to the United States.

2. The defendant's letter of 30 June, 1841, is to be read with, and as a part of, the account current by which it was accompanied, and he is entitled to the benefit of its contents as contemporaneous qualifications of the admissions and statements contained in the accounts.

3. The defendant is at liberty to show that the accounts were prepared upon the plan of the instructions of the Treasury Department, communicated to collector under the act of Congress authorizing the department to regulate the form and manner of keeping them.

4. He is at liberty to show how far and in what particulars accounts thus kept and rendered exhibit the character and extent of his liability, and to what extent they answer and were intended to answer collateral purposes.

5. He is at liberty to show errors, omissions, or overcharges in the accounts rendered, or that entries have been suppressed or untruly made, or that he is charged with money which has been wrongfully withheld by subordinates in the custom house, or by other persons.

Page 51 U. S. 117

6. He is not legally responsible to the United States for the consequence of acts or omissions of other persons, which he could not by ordinary vigilance have detected and prevented.

7. In defining the degree of vigilance which is to be deemed ordinary vigilance within this rule, the jury is at liberty to take into consideration the testimony as to the extent and variety of the details of the duties of his office and the difficulty or impossibility of personal attention on his part to the details of the accounting department of the custom house.

8. To the proof of errors in detail the defendant is at liberty to superadd evidence of errors in gross, so far as such proof may tend to show that the defendant is charged with a greater amount of cash than he was properly accountable for.

9. If the defendant has proved to the satisfaction of the jury what amount of money came to his own custody or possession during his whole term of office, and has discharged himself of this amount by proving its faithful and appropriate disbursements for account of the United States, this testimony may be taken into consideration by the jury as tending to prove that he is charged with more money than he is properly accountable for.

10. The defendant is in this respect entitled to indulgent and favorable consideration as to the character of the proof of errors in the accounts if the jury believes that, by the acts or omissions of others, he was deprived of the intended checks and means of testing the accuracy of the accounts in the cash returns and the accounts in the naval office.

11. It is not necessary for the defendant to prove that credit was claimed at the Treasury Department for errors now shown in the accounts, where the defense operates by way of traverse denial, or impeachment of the case in chief of the plaintiffs.

12. By the instructions of the Treasury Department and course of business under them as to the retention and disbursement of the surplus amounts of public money remaining with the defendant as the banker or fiscal agent of the government, the duties performed and responsibilities assumed by him are extra-official, for which the jury may allow him such reasonable compensation and indemnity as they may find him entitled to therefor.

13. The fees of office, under the act of 1799, sec. 2, payable by persons concerned in trade and navigation to the collector for defined services, and not forming a deduction from invoices of the United States in his hands, are not embraced in the term "emolument" as used in the limitation clauses of the acts of 1802, ch. 37, and 1822, ch. 107, and consequently the defendant is entitled to credit for the items in controversy under this head.

Page 51 U. S. 118

14. If the jury believe that the forfeited goods, as to which one-half of the amount of duties is in controversy were restored to the claimants upon a stipulation or bond for their value, estimated as at the place of export, and that this mode of estimating was adopted by the court on the ground that the amount of duties constituted a part of their entire value, and distribution after condemnation ought in law and in equity to be made accordingly, and the defendant should receive credit for the amounts in controversy under this head.

15. There has been no legal evidence in support of the claims of the United States as to the items under this head mentioned in the additional or supplemental adjustment of 28 December, 1842.

16. After the unconditional allowance at the Treasury Department of credits to the defendant in official adjustments of his accounts, the disallowance and rejection of the same credits by the accounting officers of the department in subsequent adjustments was unofficial, unauthorized, and irregular, and did not constitute legal rescission of the credit.

17. Similar payments afterwards made by the defendant on the credit of these allowances and before the receipt of notice of any change in the views of the department should be credited to him independently of any decision of the abstract question of their regularity on original grounds.

18. If the defendant in good faith paid accounts presented in due form by officers of the government authorized to present them and to receive the amounts, he is not to be held responsible as a guarantor that such amounts were in every instance strictly chargeable as between such officers and the government in the absence of evidence of culpable inattention or remissness on his part.

And the counsel for the plaintiffs insisted to the contrary, any prayed the court to charge the jury in conformity with the following propositions of law:

I. The collector is the officer who receives all the duties, is consequently chargeable with the whole amount, and can discharge himself from that liability only by showing duty bonds unpaid, and cash paid to or legally for the government.

II. The certified accounts from the Treasury Department, being made up from the collector's quarterly returns and agreeing with the quarterly accounts except in the items specifically disallowed by the Comptroller, are prima facie evidence that the amount stated as the balance is due from the collector to the government.

III. The items disallowed by the Comptroller are the only items of account in issue, being the only items on which the

Page 51 U. S. 119

collector's statement of the amount differs from the Comptroller's statement of them.

IV. The collector can discharge himself from the balance stated by the Comptroller only --

1. By maintaining, by facts or law, the validity of the items rejected by the Comptroller, or

2. Proving, by the clearest evidence, error in some other item in the account with which he charged himself in his quarterly accounts.

V. There is no evidence given in the cause that impeaches the accounts so as to authorize a jury in their verdict to diminish the balance stated by the Comptroller except so far as the defendant has given clear proof of specific errors.

VI. Items of difference not allowable:

1. Wasson's bill, being rejected items Nos. 7 and 8.

2. Fees paid B. F. Butler, being rejected items Nos. 10, 11, and 12.

3. Measurers" and gaugers" expenses, being rejected item No. 9.

The several items rejected by the Comptroller, and numbered in the foregoing statement on the part of the plaintiffs Nos. 7, 8, 9, 10, 11, and 12, being allowed to the defendant by the jury under the charge of the court, do not form any part of the exceptions, and this part of the prayer of the plaintiff's counsel is therefore omitted

4. Collector's fees. They are subject to the limitation in the Act of 7 May, 1822, as emoluments of office.

5. Duties on forfeited goods. They are not penalty, and collector is entitled to no part of them.

6. Commissions for paying drafts:

1st. Paying drafts of the Treasury is a legal duty, incident to the office of the collector, and is a service for which the fees and percentage specified in this act is the only compensation allowed by law.

2d. The limitation to the emolument of office precludes any claim for commission for paying the drafts of government.

Whereupon the court then charged the jury in conformity with the first, second, third, fourth, and fifth propositions of law as above submitted on the part of the plaintiffs and respecting the items of account contained in the above statement, also submitted by the plaintiffs, the court charged the jury that items numbered 2, 3, 4, 5, 6, 13, 17, involved no question of law, and the jury would upon the facts determine whether all or any of them had been properly rejected by the Comptroller; that as to item 1 in said statement, being a claim for half the duties upon goods forfeited for undervaluation,

Page 51 U. S. 120

though not a legal claim, the jury should allow it to the defendant inasmuch as it had been distributed, and such distribution sanctioned by the Treasury Department; that they should also allow to the defendant the items numbered 7, 8, and 9, as they had been paid by defendant and as such payments had been sanctioned by the Treasury Department, and items numbered 10, 11, 12, and 14, as properly chargeable to the government.

The court further charged the jury that the item number 25 in said statement was an illegal charge, being a claim to retain a whole year's compensation for a part of a year; that item number 16 in said statement was an illegal charge, being a charge for fees as something distinct from and independent of the employments allowed and limited by law; that item number 18 was an illegal charge, being a claim for commissions for accepting and paying the drafts of the Treasury; and that item number 19 was an illegal charge, being a claim for half the duties for goods seized and forfeited for undervaluation; and that none of said items numbered 15, 16, 18, and 19, should be allowed to the defendant in account by the jury.

The court further charged the jury that there was one item in the account of the defendant with the plaintiffs of great importance, respecting which the defendant contended that he was charged twice with the amount, and that was an item of about $109,000 for the excess of deposits for unascertained duties. It is the practice of the merchants, when they want their goods immediately, to deposit with the collector a sum sufficient by estimate to cover the duties, and when the duties are ascertained, the merchant calls for repayment of any excess of the deposit over the ascertained duties, which excess is thereupon paid over by the collector to the claimants. The whole amount of the estimated duties deposited having at the time of the deposit been paid by the collector, under requirement of law, into the Treasury, is credited to the collector by the government in his account, but in that account he is only charged with the actual duties. The collector repays the excess to the merchant out of his own money, and the government afterwards returns it to him by a warrant from the Treasury and charges him with that warrant. If the government had retained the whole sum deposited, and at the same time had required the collector to pay back to the merchant the excess, there would be some ground to sustain the allegation of the defendant; but as it is, there is no ground for the allegation of the defendant of a double charge, or error in this sum, and the jury are wholly to disregard this claim, and make no allowance for it whatever.

The court further charged the jury that the book of general

Page 51 U. S. 121

accounts and the cash book of the custom house, introduced before the jury as evidence by the defendant, were the books of the defendant, with the keeping of which the plaintiffs had no connection and over which they had no control, and that if there was any discrepancy between them, it was for the defendant, and not the government, to explain such discrepancy.

And the court further refused to charge the jury in conformity with the points above submitted on the part of the defendant, and in conformity with which the said defendant prayed the said court to charge the jury, except so far as in the foregoing charge is contained.

And thereupon the said defendant then and there excepted to so much of the said charge of the said court, wherein the said court charged the jury in conformity with said 1st, 2d, 3d, 4th, and 5th propositions of law, so as above submitted on the part of the plaintiffs, and to so much of the said charge of the said court, wherein the said court charged the jury that the items numbered 15, 16, 18, and 19, in said statement, so as above submitted on the part of the plaintiffs, were illegal charges, and not to be allowed to the defendant in account with the government, and also to so much of the said charge of the said court as related to the claim of the defendant to have the item $109,000 or thereabouts for excess of deposits for duties over ascertained duties, allowed him in account, and as directed the jury to disallow such claim; and also to so much of the said charge of the said court as related to the book of general accounts, and the cash book of the custom house.

And the said defendant thereupon then and there further excepted to the refusal of the said court insofar as the said court did so refuse to charge the jury in conformity with the points so as above submitted by the said defendant, and in conformity with which the said defendant so as above prayed the said court to charge the jury.

And the said defendant thereupon then and there further excepted to the decision of the said court in admitting as evidence against the defendant the Treasury transcripts introduced by the said plaintiffs, and also to the decision of said court in excluding the testimony of William Moore a witness introduced by said defendant, and also to the decision of said court in excluding the letters of defendant dated 12 and 22 December, 1842, and 17, 25, and 28 January, 1843.

The record contained numerous circulars from the Treasury Department to collectors and receivers of public money. That of the 9 June, 1837, and extracts from those of 13 March, 1839, and 9 July, 1840, only are inserted, these

Page 51 U. S. 122

having been more particularly referred to in the argument of the case.

"Circular instructions to Collectors of the Customs and"

"Receivers of the Public Money"

"Treasury Department, June 9, 1837"

"SIR -- Should all the banks in your vicinity, selected as depositories of the public money, have suspended specie payments at any time, so that you can no longer legally deposit in them as usual to the credit of the Treasurer, all public moneys received by you, except such sums as may be required to meet the current expenses of your office, the payment of debenture certificates by collectors &c., in other words, the sums you would formerly have placed in bank to the credit of the Treasurer of the United States, will, under the present arrangements, be placed to his credit, in a separate account, on the books of your office. They will be drawn for by him in the following manner, and no other."

"1st. By the Treasurer's draft on the officer having funds to his credit, directing the payment, which draft will be recorded by the Register of the Treasury, who will authenticate the record by his signature. A private letter of advice will be transmitted by the Treasurer in each case."

"2d. By a transfer draft signed as above, and approved by the signature of the Secretary of the Treasury, for the purpose of transferring funds to some other point where they may be required for the service of the government."

"No deduction whatever is to be made from the moneys placed by you to the credit of the Treasurer, except in one of these two modes, until they can be lodged by you with some legal depositary."

"On payment of any draft, the party to whom it is paid will receipt it. You will note on it the day of payment; will charge it on the same day to the Treasurer, and will transmit it to him with the return of his account in which it is charged. In charging these payments, it will be proper to enter each draft separately, and to state the number and kind of draft, whether transfer, or on Treasury, War, or Navy warrants, and the amount."

"It is also necessary that the Treasurer's accounts be closed weekly with the conclusion of Saturday's business, and transcripts thereof forwarded in duplicate; one copy to the Secretary of the Treasury, and one to the Treasurer. When the quarter of the year terminates on any other day of the week, the account should be closed on the last day of the quarter, leaving

Page 51 U. S. 123

for an additional return the transactions from that time to the close of the week, so that neither the receipts nor payments of different quarters be included in one return. Punctuality in transmitting the returns is indispensable."

"To produce uniformity in the manner of making the returns of the Treasurer's account, a form is herewith transmitted. For the purpose of binding, it is requested that they be made on paper of nearly the same size. Your monthly returns must be rendered to the department as heretofore."

"When the public money shall have accumulated in your hands to an amount exceeding _____ dollars, you can make a special deposit of the same in your name, for safekeeping, in the nearest bank in which you have heretofore deposited the public money, and which will receive the same, to be held by it specially, subject to the payment of checks or drafts drawn by the Treasurer of the United States on the officer by whom the same has been deposited."

"LEVI WOODBURY"

"Secretary of the Treasury"

"Extract from Circular to the Collectors of the Customs"

"or persons acting as such"

"Treasury Department"

"First Comptroller's Office, March 13, 1839"

". . . In this spirit I have to inform you that it is deemed indispensably requisite that you should open an account special with the Treasurer of the United States, agreeably to the form annexed, A. Having been required heretofore to keep a separate account of this nature, it will not materially increase your labors. In this account you will pass the moneys referred to, as soon as received, to the credit of the Treasurer; and in order that it may be kept in as simple and clear a form as is consistent with your business operations, I have especially to request that, in making the debit and credit entries, you will distinguish the deposits for duties unascertained from duties paid under protest, and both from other moneys, to be denominated cash received, or placed opposite to the distinctive heads of receipts, and also designate the kind, number, and amount of each paid draft issued upon you by the Treasurer."

"But as you will not be able readily to observe this distinction of moneys in the special account with the Treasurer, or without great inconvenience and difficulty, in some cases, adjust the excess of the deposits over the ascertained duties, or the duties to be refunded as having been paid under protest, which are to be so refunded, if at all, in pursuance of a Treasury

Page 51 U. S. 124

warrant, and upon the order of the department, according to the usage that has so long prevailed, I deem it also equally indispensable that you should keep separate and distinct accounts of them -- the one to be called 'the unascertained duty account,' and the other 'the protested duty account,' agreeably to the forms annexed, B and C. In these accounts, according as the case may need, you will enter upon the debit side the deposit made by the importer, which will be balanced by the ascertained duty, and the excess paid back to the importer, or enter on the debit side the amount of duty paid under protest, and balance it by the draft of the Treasury in favor of the importer. . . . There are other reasons that might be given, but these are in themselves sufficient. It has therefore, upon full deliberation, been decided upon as the more proper course, and as a substantial compliance with the section, that you should make exhibits of the sum necessary for the purpose of refunding excess in deposits to importers to the Secretary of the Treasury, monthly, to be examined and countersigned by the naval officer, agreeably to form annexed, D, on which the Secretary will issue his warrant for the same in your favor, as assignee in fact of the respective importers. You will thus be put in funds to meet this class of repayments, and you will take of each importer duplicate receipts, and account quarterly for the same at the department. The form of the account you are to render to the First Auditor of the Treasury is annexed, E. In this account you will charge yourself with the Treasury warrant, and claim credit for the vouchers produced. This account has no connection, immediate or remote, with your accounts at the customs. In the latter account, you are charged with the true ascertained amount of duties, but the former arises from the government, out of abundant caution, taking under its control for a time the money of individuals, mingled with that of the public, for the better security of its own just and legal portion. . . ."

"Very respectfully, your obedient servant,"

"J. N. BARKER, Comptroller"

"Extract from Circular"

"Treasury Department, July 9, 1840"

". . . As a depositary of the public money standing to the credit of the Treasurer of the United States, you will keep an account current with him, in which you will debit yourself with all sums received on his account, and credit yourself with all payments made by his order, and no other. . . ."

"Be pleased to understand thoroughly this principle, that all

Page 51 U. S. 125

money in your hands to the credit of the Treasurer is in fact money in the Treasury of the United States, and cannot be used for any other purpose than the payment of warrants or the drafts thereon issued in pursuance of appropriations by Congress; but these moneys may be transferred from one depositary to any other depositary, by direction of the Secretary of the Treasury, under the authority of the tenth section of the act. . . . Respectfully,"

"LEVI WOODBURY, Secretary of the Treasury"

Page 51 U. S. 132

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