1. A claim of a common carrier by railroad for unpaid freight
charges, due for transportation of materials used in the
construction of a federal building, is one for "labor and
materials" within the meaning of the Act of August 13, 1894, as
amended, and is covered by a contractor's bond given pursuant to
that Act. Pp.
302 U. S.
443-444.
2. The Act is to be liberally construed for the protection of
those who furnish labor or materials for public works. P.
302 U. S.
444.
3. That the carrier might have enforced payment of its charges
by withholding delivery is not reason for excluding it from the
benefit of the Act. P.
302 U. S.
444.
89 F.2d 658 affirmed.
Certiorari,
post, p. 664, to review a judgment
affirming a judgment against the insurance company as surety on a
public contractor's bond.
MR. JUSTICE McREYNOLDS delivered the opinion of the Court.
The petitioner is surety on a post office construction bond
given pursuant to the Act of Congress approved August 13, 1894, c.
280, 28 Stat. 278, as amended, 40 U.S.C. ยง 270, which provides:
"Any person or persons entering into a formal contract with the
United States for the construction of any
Page 302 U. S. 443
public building, or the prosecution and completion of any public
work, or for repairs upon any public building or public work, shall
be required, before commencing such work, to execute the usual
penal bond, with good and sufficient sureties, with the additional
obligation that such contractor or contractors shall promptly make
payments to all persons supplying him or them with labor and
materials in the prosecution of the work provided for in such
contract, and any person, company, or corporation who has furnished
labor or materials used in the construction or repair of any public
building or public work, and payment for which has not been made,
shall have the right to intervene and be made a party to any action
instituted by the United States on the bond of the contractor, and
to have their rights and claims adjudicated in such action and
judgment rendered thereon, subject, however, to the priority of the
claim and judgment of the United States."
Respondent, common carrier by railroad, having transported
material for the structure, sued on the bond to recover freight
charges and prevailed in both courts below. They held it was a
"corporation who has furnished labor or materials used in the
construction" of a public building. The correctness of this
conclusion is the only question before us.
The cause is here because of conflicting opinions in Circuit
Courts of Appeals.
United States to use of Sabine & E.T.
Ry. Co. v. Hyatt, 92 F. 442;
Title Guaranty & Trust
Co. v. Puget Sound Engine Works, 163 F. 168;
Mandel et al.
v. United States to use of Warton & N. R. Co., 4 F.2d 629;
Maryland Casualty Co. v. Ohio River Gravel Co., 20 F.2d
514;
Stuart for Use and Benefit of Florida East Coast R. Co. v.
American Surety Co., 38 F.2d 193;
Standard Accident Ins.
Co. v. United States for use of Powell, 89 F.2d 658.
Petitioner maintains that freight cannot be considered as "labor
or material" without doing violence to the words
Page 302 U. S. 444
of the statute; also that Congress did not intend to extend
further protection to carriers who could enforce their lien for
charges by retaining and selling the materials.
Stuart for use of Florida East Coast Ry. Co. v. American
Surety Co., supra, carefully considered and denied these
defenses and stated reasons therefor which we deem adequate. This
was followed by the court below in present cause.
The statute often has been before us.
Guaranty Co. v.
Pressed Brick Co., 191 U. S. 416;
U.S. for Use of Hill v.
American Surety Co. of New York, 200 U.
S. 197,
200 U. S. 201;
Title Guaranty & Trust Co. v. Crane Co., 219 U. S.
24;
United States Fidelity &
Guaranty Co. v. U.S. for benefit of Bartlett,
231 U. S. 237;
Equitable Surety Co. v. U.S.
for use of McMillan, 234 U.
S. 448,
234 U. S. 456;
Illinois Surety Co. v. John Davis Co., 244 U.
S. 376,
244 U. S. 383;
Brogan v. National Surety Co., 246 U.
S. 257,
246 U. S. 262.
And we are committed to the doctrine that it should be liberally
construed in aid of the evident public object security to those who
contribute labor or material for public works.
Certainly labor is required for loading freight on railroad
cars, moving these over the road, and unloading at destination. A
carrier who has procured the doing of all this in respect of
material has "furnished labor." If a contractor had employed men to
move the same kind of material in wheelbarrows, there could be no
doubt that he furnished labor. In principle, the mere use of cars
and track and a longer haul creates no materially different
situation.
Nor do we find reason for excluding the carrier from the benefit
of the bond because it might have enforced payment by withholding
delivery. The words of the enactment are broad enough to include a
carrier with a lien. Nothing in its purpose requires exclusion of a
railroad. Refusal by the carrier to deliver material until all
charges
Page 302 U. S. 445
were paid might seriously impede the progress of public works,
possibly frustrate an important undertaking.
State for Use of Pennsylvania R. Co. v. Aetna Casualty &
Surety Co., 34 Del. 158, 145 A. 172, gave much consideration
to a similar statute. The conclusion there reached accords with our
view.
The judgment of the court below must be
Affirmed.