
    THE JACKSONVILLE, PENSACOLA AND MOBILE RIALROAD COMPANY v. THE UNITED STATES.
    (21 C. Cls. R., 155; 118 U. S. R., 626.)
    
      On the claimants Appeal.
    
    A land-grant railroad transports tlie mails under a written contract from 1871 to 1875. Then it continues the service without entering into a new contract. In 1876 10 per cent, is deducted from the compensation under the act 12th July, 1876, and in July, 1878, 5 per cent, under the act 17th June, 1878. The railroad receives and delivers the mails at all post-offices within 80 rods of the road, for which no distinct compensation is paid. The Postmaster-General continues to make deductions and impose fines as under the written contract.
    The court below deckles:
    (1) The Post-Office Regulations concerning contract sections relate to the whole mail service. They do not compel the Postmaster-General to make time contracts in all cases, nor prevent him from accepting services which may he terminated at will hy either party, and they do not apply to cases where it is not practicable or convenient to make time contracts.
    (2) On the expiration of an express mail-transportation contract for a fixed period, continued service, rendered and accepted, does not imply a new contract for a like period; the more reasonable implication is that the service is temporary, and terminable at the option of either party.
    
      {3) A “ land-grant road” is under a perpetual contract made by the Zímd Grant Act 17th May, 1856 (11 Stat. L., § 5, p. 15), to carry the mails at such rates as Congress may by law direct or the Postmaster-General determine.
    (4) A land-grant road carrying the mails without an express contract with the Postmaster-General was subject to the reductions of compensation ordered by the Acts 12lh July, 1876, and 17th June, 1878 (19 Stat. L., § 1, p. 78; 20 id., § 1, p. 140).
    The judgment of the court below is affirmed on the same grounds.
   Mr. Justice Field

delivered the opinion of the Supreme Court, November 1, 1886.  