The New York herald., 1870-12-18

~ slgilneS tue tfnC When the Interest idlls uuc COn
ceuDg that this Is not the more common meaning Of
the word ''maturlty' as applied TO such bonds,
think there Is enou9h In the whole character OF tho
statutes now under examination TO authorize TINS
Interpretation OF 1t used here II the clause re
ers 70 Interest az all the interest falls due semi
annually and In iact separate instrument IA
couponj is Issued ior each nstalmenI OF interest.
suppose the not very unusual case OF written OBJ
lisation to pay money by instaments Speaking OF
tDe maturity OF that paper, we should mean the
several times when tue successive instalments be-
come due Each coupon Is q separate engagement,
and may 20 sued upon without even producing the
bond 60 which 1t was originally attached. tComms.
sioners OF Knox county, ND, VS.. Aspinwail et al,
The NTH section provides that upon the failure OF
me company 70 redeem said bonds or any part OF
tnem when required TO do so by the Secretary OF
tue treasury, In accordance with the provisions OF
inns act the said road, with all the rights franchises,
immunlties aud appurtenances rhereunto belonging,
and also all the lands granted said company by the
United States which, at the time OF said default,
;Ss company: n.aI may Se taken possesaon Of S Sy
use ana benefit OF the United States il ia not likely
that Congress intended to cucumber this important
We must suppose that IN authorizing the Secretary
OF the Treasury on the failure TO redeem the bonds,
or any part OF them TO take possession OF all lands
granted TO said company by the United States
winch at the time OF said defaults should remain in
tne ownership OF said company. Congress intended
10 OBTAIN substantive ana valuable security
The third section, which gives to the company five
alternate sections or land mite each side OF the
road, provides that ali such lands which shall not
be sold or disposed OF by said company within three
years after the entire road shall have been
completed CON .sli, shall ss subject 70 settlement
price not exceeding one dollar and twenty
nve cents per acre, TO paid to SAID company.
The object ana the certain effect Of this provision
was to compel the company to sell the granted
lands by the end Of three years from the completion
OF lhe road. Inc seventeenth section forieits the
the LIST OF July, 1876 Then IL appears that Congress
expected that granted lands Of sufficient value to be
an important security for the company's debt would
be IN the possession Of the company when default
might occur. No such lands could be expected to
aer the ls Of 9ay 1872 This s date = az
least thirteen years earlier than the time when the
principal OF the bonds viii fall due. BY that date,
then, II Is possible that there should be default.
AS TO the principal Of the bonds the only default
which can happen by that time is default In the
an entry upon the granted lands provided, in effect,
FOR an entry for default, which might happen
In the matter OF interest alone. Counsel for the
company derive one argument In support Of their
views IRON the language OF tue fifth section Of the
act OF LIST July, 1862, that only onehaf OF the
pensatiOn for the rendered for this govern
ment as said company shall be required) snail be
government In aid OF the construction Of said road.
Q34 United States Statutes, D. 359.) The language
OF the sixth section Of the act OF 1862 on this sub
jectls:-
compensation for services rendered
shs BE- APPLIED to the q said bonds and interest
There Is this difference between act and the amend
ment that the latter omits the words "and INTEREST,"
II this omission was Intentional 1t shows that Con.
gress, Ia passing tho amending act intended to
leave In force all the provisions OF the original act
in relation to the reimbursement OF interest and re-
duced the reservation Of compensation one.half
be Applicable to s discharges of the sh%na pp
cipal OF the bonds-an application which could
only oe required IN the event that the interest
should DO regularly repaid by the company from
some other source. II the omission was accidental,
and the word 'bonds," in the fifth section or the
act OF 1854, means the same as the words "bonds
and Interest," In the sixth section 0! the act or 1892
then Congress intended to reduce the specific appro
priation OF the compensation for service rendered
for the government from all to half. An argument
Is made for the company that this specific appro-
priation indicates that Congress expected no rem.
company before the maturity Of the principal
OF the bonds, except the five per cent OF the
Is to be- Annually 'v apUed to the 81 ey tS
bonds and interest. This argument would reach too
far. The Limitation OF II 70 payments before the
In the statutes themselves fairly carried cur. Ii
would establish that neither the principal Of the
bonds nor the interest can be required
except out OF one-haf Of the compensation ior
services rendered to the government and OF the
IL these are the only resources from which the gov
ernment can claim payment OF principal and inte-
rest before the expiration OF the thirty years they
are tina only resources from which such payment
can DO obtained after the expiration OF the thirty
years. IL Is incredible tnat Congress intended 10
assume SO large liability with so small provision
for reimbursement
one-haH OF the compensation for carrying for the
government and the five per cent upon the net earn
that the government should be reimbursed by the
company from It's general resources, either before
or alter the expiration OF the thirty years,
answers might be suggested. The act OF 1854 was
passed IN the midst OF formidable war. The In
tervention OF foreign Powers was within the range
OF possibility. An occasion might possibly arise Tor
the transportation OF troops and munitions OF war
across the Continent to such an extent that the
government would for the time absorb the whole
a hn
ceedingy harsh for the government to reserve for
Its own debt the whole compensation for that SER
resources for carrying on the road An argument
against this construction to which my mind has
come, nag az be Deen n lounde1 on the language OF
act OF 1852 was under consideration. In expound
ing an act OF Congress the construction placed upon
1t by individual members in the debate which took
place on Its passage cannot be considered. Eldridge
vs. Williams. 30 Howard, 1-6 opinion, p. 464 opn-
ion, p 57l am more impressed oy the rejection OF
ment Of current interest. Congressional Globe
part part z, ons lss2 aonIs 1s But this was
In Committee of the Whole, ana after very BRIEF
debate and the weight which fairly belongs to such
circumstance is insufficient to revise the conclu-
sion to which am brought by the other consldera.
part Of the company thar an intenti to
would have been distinctly expressed This
arI argament eo may be turned m the other way with
distinctly expressed, The addition OF few plain
words would have settled the meaning one
way or the other beyond all controversy
ana strictly constituting the acts when
ever obscure against the party most. bepe-
nted by them. find in the omission Of such
words O strong reason for holding that Con.
gress meant to have in full force the equities
that prescribe the immediate payment Of money
paid for one's benefit and at the request. My con-
clusion then, is that the government may lawfully
claim from the company the amount OF the interest
in question. as such Interest is paid BY the govern
ment.
10 the particular question in your letter or Novem
Der % answer that the government may retain the
entire amount of compensation for services rendered
to it by the company, applying the same 10 the in
terest paid by the United States unless such
shall have been repaid by the company, and in that
event one-half OF the compensation for such SER
vices may be reserved and applied to the principal
Of the bonas. Very respectfully, your obedient SER
want II. 7. AKEKMAN, Attorney General.
WHY BOUTWELL, MAY RESIGN.
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