stamped envelopes as he may deem advisable;" by the one hundred and seventy-second section of the same act he is directed and required “to furnish postage-stamps and stamped envelopes to all postmasters, and to be kept for sale at all post-offices;" and the one hundred and seventy-third section of the same act provides for their sale at a discount to certain designated agents. It is important to consider the provisions of these several sections, to show the authority of the Postmaster-General to contract for the furnishing of stamps, the uses and purposes of the stamps so provided, and how these uses and purposes were to be subserved, all tending to determine the character of the stamps intended in the contract now under consideration. Under the act of June he was authorized to provide postage-stamps of suitable denominations, which, when attached to mail-matter, should be evidence of the payment of the postage thereon. The stamps that he was authorized to provide were stamps which, when attached to mail-matter of any and every class or character, should be evidence of the payment of postage; they were to be such as could be delivered to postmasters, kept in post-offices for general sale, and under certain circumstances sold at a discount; they were most general in their character, proper to be attached to all mail-matter, to be used by all persons, and for that use to be placed for sale within the reasonable convenience of the whole people. The Postmaster-General could not, under the provisions of this act, provide a stamp for special purposes or special persons. Congress so understood the character of the stamp which the Postmaster-General was authorized to provide, and to enlarge his power gave him further authority, requiring him to cause to be prepared special stamps or stamped envelopes, to be used only for official mail-matter for each of the Executive Departments; and to that end, and for that purpose, passed the law of March 3, 1873, before referred to, and the necessity for this authority grew out of a new and theretofore untried policy of the Government, namely, the abolition altogether of the franking privilege, an exigency which had not arisen, and was not contemplated when the contract under consideration was made or proposals for the same published. If the legis lation conferring authority on the Postmaster-General at the time this contract was made did not authorize him to contract for the special stamps which he was authorized to have prepared by the act of March 3, 1873, then the proper construction of the terms of the contract would be that which would be within the limits of legal authority. Lord Lyndhurst, in Shore vs. Wilson, 9th Clark and F., laid down the rule "as a fair and proper rule, that where a construction consistent with lawful conduct and lawful intention can be placed upon the words and acts of parties, you are to do so." The same rule is substantially laid down in different terms: "When certain things are to be done by the contract, which the law has regulated in whole or in part, the contract will be held to mean that they should be so done as would be either required or indicated by the law;" and the ruling in the case of Clark vs. Pinney, 7 Cowen, 681, is given as authority for the rule. In that case there was a contract to deliver Salina salt in barrels; yet, notwithstanding the comprehensiveness of the term barrels, it was held that the word barrels was used in a restricted sense, and such barrels as were directed by the statute were to be understood as intended. There is another cardinal rule of construction which must be observed in order to ascertain the meaning and intention of the contracting parties in the use of the term "adhesive postage-stamps;" in this case, we must consider the whole instrument in which the contract is embodied; and from the whole ascertain, if we can do so, whether the contracting parties in the use of that term intended to use it in its most broad and comprehensive sense, or intended and meant only stamps of that class and character which were used by the Department at the dates of the advertisement and contract. In observing this rule, we shall properly examine the advertisement of the PostmasterGeneral for proposals to furnish the postage-stamps, which we find embodied in the contract and made part of it by way of recital. In this part of the contract we find frequent reference to "the stamps now in use;" in the first place as a standard of quality in execution and then of quality generally, by which the stamps to be furnished under the contract were to be measured. We find also a reference to the uses of the stamps to be furnished in the requirement therein that they should be furnished with all reasonable dispatch, in such quantities as may be ordered by the Department, to fill the separate daily requisitions of postmasters and postal agents. We find in that part of the advertisement which makes an estimate of the quantity of stamps that will be required, more to indicate the meaning and intention of the contracting parties, as to the character of the stamps to be furnished, than in any other separate part of it. That estimate is advertised as a matter desired to be known by those who would offer proposals, and on which their respective offers would be based, as the cost of the stamps to the contractor and the profits on the contract would depend very largely on the number he would be required to supply. As such an estimate could not be made except upon the past requirements of the Department for the stamps used by it, we must conclude that, in the estimate advertised, the Department would require two billion eight hundred and eighty-three million during the period of the contract-term; that the Department intended stamps of that class and character which were then used by the Department, adapted to the use of, and used by, the whole people in the prepayment of postage on all matter carried in the mails; and the reservation, in the same part of the advertisement, "that proposals made under this advertisement shall include all the stamps needed by the Department during the contract term, without reference to the above estimates, which are here given only for the information and guidance of bidders," would not vary the impression made and intended to be made on the minds of the bidders, that the stamps needed by the Department, whether in greater or less quantities than the estimate, would be of the general character, as to use, as those then used; and the information thus given of the past and probable future needs of the Department, instead of being a safe and reliable guide to bidders, would be a deception and a snare, if stamps of a limited and special and not general use were intended in the advertisement. It is true, in another part of the advertisement, express provision is made for a change in the designs and an extension of the denominations, but that change of design, so far from contemplating a change in the character of use, provides that such new designs are only to take the place of the series of stamps then in use. This reserved power to change the design would be, to one offering proposals, a proper matter for consideration, but not controlling when it would not affect the general use by the public of the stamps to be furnished, nor diminish the estimated requirements of the Department, as on that use and thosə requirements the profits of the contract would most largely depend. This advertisement of the Postmaster-General was the inducement to the contractor, and the basis of the contract, and, when we consider it in all its parts, we cannot doubt that the postage-stamps therein intended were such as the Postmaster-General was, by the laws then in force, authorized to provide for the use of the whole people, and not such as by subsequent legislation (abolishing the franking privilege) made a necessity, to meet which necessity he was by a later act, the act of March 3, 1873, clothed with authority and directed to provide postage-stamps of a special character and for a special and limited use. In ascertaining the meaning and intention of the contracting parties in the use of the term "adhesive postage-stamps," if we properly consider the legal authority of the Postmaster-General, under which this contract was made, the character and effect of subsequent legislation on the same subject, and the whole instrument, we are unavoidably brought to the conclusion that the term as used in the contract did not embrace the special stamps or stamped envelopes to be used only for official mail-matter by each of the Executive Departments," which the Postmaster-General was authorized and directed to have prepared, by the act of March 3, 1873. Very respectfully, yours, &c., T. A. SPENCE, Assistant Attorney-General for Post-Office Department. Postmaster-General. Hon. JOHN A. J. CRESWELL, GENTLEMEN: You are requested to act as a committee to examine the papers, submitted herewith, constituting the claim of the Continental Bank-Note Company, of New York, for compensation for manufacturing the dies, rolls, and plates required in printing the official postage-stamps ordered in compliance with the act of Congress approved March 3, 1873, and for printing and distributing said stamps. After considering their claim, in connection with the opinion of the Assistant Attorney-General for this Department, (also submitted herewith,) please determine what sum, in your judgment, will be a fair, just, and reasonable compensation to be paid that company for the work performed, and embody your conclusions in a written report to me, stating separately the amount for the manufacture of the dies, rolls, and plates, and the price to be paid for each one thousand stamps that have heretofore been, or may hereafter be, printed and distributed. (Copy.) Memorandum of bed-pieces and rolls for United States postage-stamps made by the Continental Bank-Note Company. BED-PIECES. Treasury Department, 1c., 2, 3, 6, 7, 10, 12, 15, 24, 30, 90. State Department, for dollar-stamps, two bed-pieces, ninety in all. For engraving and making steel-plates for printing official postage-stamps Chargeable to P. S. and S. E. Adjusted and stated by DR. $50,000 00 25,856 07 75,856 07 CHES. ROBB, Clerk. July 18, 1874. No. 4065.] AUDITOR'S OFFICE, POST-OFFICE DEPARTMENT, I certify that there is payable to The Continental Bank-Note Company, New York, N. Y.. the amount due on the above account, agreeably to the books, contracts, or other vouchers in this Office, and which are herewith, as far as may be, exhibited. J. J. MARTIN, Auditor. The POSTMASTER-GENERAL. (Copy.) NEW YORK, July 17, 1574. The UNITED STATES POST-OFFICE DEPARTMENT, To the CONTINENTAL BANK-NOTE CO., Dr. To engraving and making steel-plates for printing the various special postage-stamps required for use by the several Departments of the United States Government, pursuant to the act of Congress on the subject, approved March 3, 1873: Sixteen (16) plates for the postage-stamps of the Post-Office Department, at $500 each.. $8,000 00 Twelve (12) plates for the postage-stamps of the Treasury Department, at $500 each 6,000 00 Eleven (11) plates for the postage-stamps of the War Department, at $500 each... Sixteen (16) plates for the postage-stamps of the State Department, at $500 each..... Eleven (11) plates for the postage-stamps of the Navy Department, at $500 each.... 5,500 00 5,500 00 8,000 00 Five (5) plates for the postage-stamps of the Executive Department, at $500 each... 2,500 00 Ten (10) plates for the postage-stamps of the Interior Department, at $500 each.... 5,000 00 Ten (10) plates for the postage-stamps of the Department of Justice, at $500 each.... Nine (9) plates for the postage-stamps of the Department of Agriculture, at $500 each... Amounting in all to .......... 5,000 00 4,500 00 50,000 00 Allow fifty thousand dollars, ($50,000,) in accordance with order made July 17, 1874, out of the appropriation for postage-stamps, stamped envelopes, and postal-cardsplates procured to supply an emergency of the service requiring immediate delivery. J. W. MARSHALL, JULY, 1874. THE UNITED STATES POST-OFFICE DEPARTMENT Postmaster-General. NEW YORK, July 17, 1874. DR. TO THE CONTINENTAL BANK NOTE COMPANY, of New York, For official postage stamps furnished to the Department up to and inclusive of June 30, 1874. Grand total 32,320,085 stamp3, at 80 cents per 1,000, $25,856. 07. I certify that the foregoing account is correct so far as concerns the number of stamps furnished. JULY 17, 1874. E. W. BARBER, Allow twenty-five thousand eight hundred and fifty-six dollars and seven cents in accordance with order made July 17, 1874, out of the appropriation for postage-stamps, stamped envelopes and postal cards-stamps procured to supply an emergency of the service requiring immediate delivery. JULY, 1874. J. W. MARSHALL, This article of contract and agreement, made this twenty-seventh day of August, one thousand eight hundred and seventy-four, between the United States of America, (acting in this behalf by James W. Marshall, Postmaster-General,) of the first part, and The Continental Bank-Note Company, of the city and State of New York, by Homer H. Stuart, president thereof, as principal, aud Homer H. Stuart, of the said city of New York, and Touro Robertson, of the said city of New York, as sureties, of the second part, witnesseth: That whereas by the fourth section of an act of Congress approved March third, one thousand eight hundred and seventy-three, entitled "An act making appropriations to supply deficiencies in the appropriations for the service of the Government for the fiscal year ending June thirtieth, eighteen hundred and seventy-three, and for other purposes," it was enacted, in addition to other provisions, as follows. Provided, That the Postmaster-General shall cause to be prepared a special stamp or stamped envelope, to be used only for official mail-matter, for each of the Executive Departments.” And whereas, to meet the requirements of this provision and the public exigency caused by cotemporaneous legislation, it became necessary for the Postmaster-General to procure immediately, by contract, the designated stamps or stamped envelopes, and under that necessity, and with a proper regard to the public interest, he verbally contracted with the Continental Bank-Note Company, of the city and State of New York, to manufacture and furnish to the Post-Office Department all the postage-stamps of the character described in the said preceding law, which the Department would require for the term ending on the thirtieth day of April, one thousand eight hundred and seventy-seven, at such prices as should be subsequently ascertained to be a just and reasonable compensation; and Whereas thereafter, to ascertain what would be a just and reasonable compensation to be paid to the Continental Bank-Note Company for manufacturing and furnishing the said official stamps, and for making and preparing the dies, rolls, and plates necessary to print and furnish the same, the Postmaster-General did appoint a committee of three discreet and competent persons to carefully examine and report what would be a just and reasonable compensation as aforesaid, which committee, having visited the manufactory of said company and carefully examined and considered the matters to them referred, did report to the Postmaster-General that for making and preparing the said dies, rolls, and plates, the same to become and continue the property absolutely of the United States, and at all times subject to its control, and at all times, when necessary, to be repaired and renewed by the said Continental Bank-Note Company, without cost to the Government, the sum of fifty thousand dollars was a just and reasonable compensation; and for manufacturing, printing, delivering, and distributing, upon the order of the Postmaster-General, the said official stamps for the term ending on the thirtieth day of April, one thousand eight hundred and seventy-seven, the sum of eighty cents for each one thousand of said official postage-stamps. And whereas the report of said committee was duly considered and approved by the Postmaster-General and acceded to and accepted by the said Continental BankNote Company: Now, Therefore, in consideration of the premises and in pursuance of the verbal agreement herein before referred to, the said Continental Bank-Note Company, of the city and State of New York, and its sureties, parties of the second part, do hereby jointly and severally undertake, covenant, and agree to and with the United States of America, and do bind themselves in the manner following, to wit: First. To furnish and deliver, as hereinafter covenanted and agreed, all the adhesive official postage-stamps which may be required by the Post-Office Department, for the use of the several Executive Departments of the Government during the period commencing on and from the day of the date of this contract and ending on the thirtieth day of April, one thousand eight hundred and seventy-seven. Second. That all the said official stamps shall be furnished, subject to the approval of the Department, from steel plates engraved in the highest style of the art of steelengraving, printed in such colors as may be selected by the Department, in the best and most approved manner, equal in every respect to the official stamps now manufactured, upon paper of the best quality suitable for the purpose, thoroughly gummed with the best quality of adhesive gum, perforated in such manner that each separate stamp can be readily detached and used, the sheets to be well pressed, and packed so as to prevent them from adhering to each other; the same to be furnished with all reasonable dispatch, in such quantities as may be ordered by the Department to fill the separate daily or other requisitions of postmasters and the various Executive Departments. Third. To keep on hand at all times a stock of the several kinds and denominations of official stamps, subject to the control of an agent of the Department, in all stages of manufacture, sufficient to meet all orders of the Department, and to provide against any and all contingencies that may be likely to occur during the existence of the contract, so that each and every order of the Department may be promptly filled; and the Department shall have the right to require the party of the second part, at any time during the existence of this contract, to furnish an extra quantity of official stamps, not exceeding a supply for three months. Fourth. To securely pack all the official stamps in strong binders' board boxes, bound on all the edges and corners with muslin, and enveloped in two thicknesses of strong Manila paper, or inclose them in strong Manila envelopes, as the quantity to le trans mitted inay require; all packages to be so inclosed as to enable the agent of the Department to officially seal them. Fifth. To deliver the official stamps in separate packages, as above provided for, at the post-office in the city of New York, or in such quantities at the Post-Office Department, or other Executive Departments, at the city of Washington, D. C., (each denomination being kept separate,) as the Postmaster-General may direct. Sixth. To furnish labels and direct the same for each package in accordance with the |