New-York tribune., 1870-12-20
TIE PACIFIC RAILROAD BONDS.

ASPECTS OF THE QUESTION.
The following are the points made by the
Attorney enera in his report on the above subject to
Secretary Boutwell,:
After recitng the several sections OF The laws OF Con
gress 10 atye to the Pacific Railroads. he contnues The
Government has issued its bonds to the Union Pacific
Railroad Company to the amount Of many millions II
has paid the accrued interest these bonds upon an APP
pcaon 10 the Company TO reimburse this interest The
Company refuses contendng that the Government has no
valid claim upon the Company for reimbursement OF IN
ter 81 until the principal OF the bonds shall he due,
cept as to oucbaf OF the compensation for services rem
dered by the Company for the Government ana az 70 I'VE
per oentum OF the net earnings OF me foad aIsr s An
go on paving out the interest twice year ard wait 20
years for It's pay except tle Small amount h Of
osa'n 'S@T9n.at0TT ssi4 FOR s V SoTe@sHi S1S 8
and and Hve per cent OF the net eqrn5inEss. eq5Eag.
The amount which the company will thus owe theSon
ernment at the expiration OF 30 years VII oe nes'
treble the principal Of the bonds ana more II interest on
the paid coupons is charged against the Company ara
while this heavy debt sha be aeGunulag against me m
company the Government vii al the tme DC payhg 10 70
dered to it by the Company. without wonderful in,
in value there Is DO prooaDe hat ne Iota snn
years the thus increased debt then due TO the Govern
cnt after the first mortgage creditors shall have been
dcnIs TO i,s stockholders out Of earnings which natural
Justice would apply O the relief OF that creditor roush
whose benefactIOus the road has been mainly hnllt
Furthermore, the Companies should he held TO the
terms Of the several acts Of Congress proGihg Ioi te
IFS t-ue something like valuable consider
alton in the stpulatons for preference 10 Govern
nent tho business of the road hut when we look at
the whcr mattel ana see nov iIqch ,ha ~,
qurcd in to do for the Government we must con-
cuIe that : , Government and Company substan-
tialy In the ratiou donor and douee The Company
admits haly TO repay the principal ana interest 10
Government and the cOnrOyCrsy as to the tune wel
the ntcrc. 10 lie repaid. Ia the absence or distinct
provisions upon that subject 1t would seem Jst tha is
soOE tie Government pays money Tor the company
Company should be bound 10 reimburse the Govern
Alter recapitulatng the binding in the acts OF
1862 Mr. Akerman comes 10 the conviction that there can
be no question of right Of the Government To- exact
regular interest Of the bonds before maturity III the
language quoted from tho beginning OF the sixth section
no separate mention is made O1 interest aud the ui
sion Ol the mention interest were dea gheu te ,he vi
having interest s not affected by this clause Du j. Q
omission casual and the word bonds as used IN
the sixth section embraces Interest as We'll %G M "s m opal
maturity" TO mold tnat, as to the PRINCIPAL IL elsnes
the time when the principal iai, & eue aa a. fo n ' m
te word maturity" as applied such bo.,ds, t!nk
that there s enough in the whole character p the stat
utes under examination to apshoTHs tejs inteTeta
ton of 1t.
lands. provided in effect for entry for default viii
might fIppen before July 1879, and such default can bc
rom the ianci5zs q the nth section OF tho at o. Ja
services rendered fCT this Government said Com.
pany shall he required . be applied 70 the payment Of
L
structon Of said road" nS4 T. STAT p $500 Tic ill
guage the sixth section Of the al o lst! on tls t
ietis "A compensation for services rendered Tor tAe
Government shall be applied 20 the payment OF sao
bonds interest until the whole amount IL fully paid
There IS this difference between the original ltNalOn
ob4 the amendment, that the latter Onlts the WOrus
and interest" IL this omission were Intentional IL
shows mat Congress In passing the amending ucUhB
Intended 10 leave in a the provisions OF the orig
iua act in relation the reimbursement Of interest," ana
reduced the reservation Of compensation 0nehaH IN 80
iar a. 81 " the princpa Of the bonds an application
which Could only he required IN the event lhat the III
terest should be regularly repaid by the Company rh
otuer sources II the omission accidental ana the
means the same as the L. bonds aud interest,", IN
tbe sixth section OF the act OF lCG2 then Congress In
tended to reduce the spccnc Appropriation OF TINS com
pepsaton rendered IOr the Government lIon
n has bsen agreed the part Of the Company that an
Intention to require the immediate repay yIuent OF inter
est would have been distinctly expressed ~,
This argument may De turned the Other way win
eona force IL be said that an intention 10 post
none the repayment Of interest would have been dis
iiuoy expressed. The addition OF lew plain words
hsyond nh controversy, snd strictly constituting aCisy
Whenever obscure against the party most benented ny
Them fnd in omission Of such words strong reason
meant 10 have IN
enuities that prescribe the immediate repayment OF
money paid for ones benefit and OF their request
NV conclusion, then, IT, that the Government may law
fuy claim from the Company the amount Of the Interest
In oaeston as such is paid by the Government
To be particuar question your letter OF Nov. 23 an
syer that the Government may retain the entire amount
of nsatOn for services rendered 10 by the CON-
fnifed States unless such interest shall have been re-
maid by the Company and in that event ehaH OF the
CONFORMATION such services may be reserved and a
piled u principal Of the bonds Very respectfully
'oui '''1'- A. T. AKEKMAS, Attorney General
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