Earl Warren

“ But if the Government's cross-libel is not permitted in this case, Isthmian is entitled to a decree pro confesso. The Comptroller General then will withhold payment of the judgment until the Government's action is terminated and if the Government should lose on the merits of its claim, § 227 requires the Government pay the withheld amount with interest at 6% 'for the time it has been withheld from' Isthmian. The difference in rates is of no mean significance when the amount in dispute is as large as it is here. ”

“ Section 3 provides for but one award of interest in the decree and that award is limited to 4% until satisfaction. We find nothing in the rather ambiguous statute authorizing the accumulation of interest up to the decree and then a second independent award of interest which operates upon the first interest. Compound interest is not presumed to run against the United States. ”

“ This sum was said to have been applied to an alleged indebtedness of Isthmian to the United States which was claimed to have arisen in 1946, when the United States, acting through the War Shipping Administration, chartered out to Isthmian eight vessels on a bare boat basis. Some disagreement arose over the amount of charter hire due and the United States asserted that Isthmian owed $115,203.76 for additional charter hire for the period from May 1, 1946, to July 31, 1948. The S.S. Steelworker was not one of the boats involved in the 1946 transaction. ”

“ But recognizing the Government's long-standing power to set off is far different from finding that the Government's setoff is 'payment' which enables the Government to plead in admiralty foreign and unrelated transactions. ”

“ Merchants Heat & Light Co. v. James B. Clow & Sons, 204 U.S. 286, 289-290, 27 S.Ct. 285, 286, 51 L.Ed. 488 (a recoupment case) ; Scammon v. Kimball, 92 U.S. 362, 367, 23 L.Ed. 483; United States v. Eckford, 6 Wall. ”