Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1871-02-25

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of the bonds together with all the interest there
| on, which shall have been paid by the United
| States, aud which shall have been paid when
manifested at the time when the company is
| compelled to pay the bonds. Had it been in
tended TO compel the company 10 pay interest
on the bonds as it should become due, the most
natural phiaseology to express that intention
would have been, "the mortgage shall secure
a repayment of said bonds, together with all in
| tereSt thereon, as the same shall become due;"
but the phrase is, together with all interest
thereon, which shall have been paid by the
United States which seems to imply that the
United States was first to pay interest, as it was
bound to pay the bonds, and that the company
must pay it at maturity of the bonds.
After citing several other legal authorities,
the report refers to the proceedings in congress
at the passage of the act of 1862, and says AS
suming, then, that it is proper, in this case, to
| search for the meaning OF this act outside its
| language the proceedings in congress will be
found entirely conclusive. While the bill was
before the senate, Mr. Bellamer, who had evil
| IDENTIFY scanned it with a professional eye and
whose opinion of the proper construction of an
act is respectable authority, moved to strike out,
IN the fifth section, the words LAS hereinafter
| provided and also the words "When required
so to do by the secretary of the treasury, in ac-
cordance with the provisions of this act :" and.
in support of his amendment, which, probably,
would have made the bill what il is now claimed
to be,-a bill imposing absolute obligations
| bonds and interest as il accrued in money,-he
| said:
This bill carries with it the idea and in this
section provides for the repayment of this loan,
| as gentlemen call it. Ina subsequent section, it
| is provided that payment shall be made in car
| rying mails, supplies and military stores for the
| government, at fair prices, and, also that a per
| cent. of the net proceeds or gains shall be set
| apart for the government. That is all the pro-
vision there is in the bill for payment There
is security attempted to be given in this section.
1t provides, beginning at the 18th line, 'and to
| secure repayment to the United States, as here
matter provided, of an amount of said bonds
so issued, and delivered to said company, to-
gether with all interests thereon which shall
have been paid by the United States, there shall
be lien on the line of the road The language
is 'as hereinafter provided The only nrnvi-
sion is the setting apart of nve per cent.
of the net proceeds, SO that, if you
leave in these words, you have really
nothing as security for your bonds, unless yon
get your pay in carrying mails &C and, if GU
do not get that service, it goes for nothing. Re-
payment is TO be 'as hereinafter provided and
the subsequent provision is for carrying mails
and government supplies"
Debates and action of both houses are further
quoted to show that the construction of the act
now claimed by the government is different
from the intention of congress. The following
amendment from the act of 1864 is then quoted:
| only One-haf of the compensation for services
rendered IOr Tue government Dy SAID companies
shall be required to be applied to the payment
of bonds issued by the government in aid of the
construction Of said roads," 1t is well settled
rule OF construction, that statutes IN pdTj ma
terra are to DC construed together, and the pro-
visions OF one may be referred to for an enplan-
alton of the provisions in another; bearing in
mind that congress, by the former act designed
to encourage the investment of capital in this
work, and that the act of 1864 as appears from
all its provisions, was intended to be yet more
favorable 10 the company the provision above
quoted can be understood in no other sense than
that congress intended to relieve the company
from applying more than half of the compenga-
ton for services to the payment of bonds, and
that the other hall should be paid to the com
pany.
Whatpossible benefit would this have been to
the company, if the company was bound to pay
| that and much larger sum Immediately back
| to the government, to satisfy acCrung interest
| on the bonds. 1t is evident from the statutes
| themselves, that the company is not bound to
make any payment in money on account of
these bonds, except five per cent. of the net pro-
ceeds, until the maturity of said bonds, thirty
years from their datc; and il is equally evident,
| from debates in both houses of congress, when
these acts were passed, that it was the intention
| of congress so to frame them as TO accomplish
| such result.
Therefore, in response to the resolution of the
senate it must be answered: First, that the
companies are not lawfully bound TO reimburse
the government any interest paid by the govern
ment on these bonds, until the maturity of the
| principal of said bonds, except that one-half of
| the compensation for services for the govern
ment may be retained by the government,
aud five per cent of the net proceeds of the
roads must also be annually applied to the pay
| ment of said bonds and interest thereon appro-
priated; and, second, that the secretary of the
treasury has no right to withhold from the
company more than one half of the compen sa-
tion due the company for services performed for
the government.
The second of the above answers is a coro-
larry from the first; but, whether by the first,
the company is bound, now, to pay to the gov
eminent the interest it has paid on these bonds,
nevertheless, the secretary of the treasury can
not violate the express statute to enforce the
payment. The statute declares, in so many
words, that only one-half the compensation for
the services rendered for the government by said
companies shall be required to be applied to the
payment of bonds issued by the government IN
aid of the construction of said roads. 1t would
be bold dealing with the statute to say that the
secretary of the treasury may require what an
act of congress says shall not be required.
1t may be said that conceding the liability of
the company, now, to pay interest, equity would
force set-otf, and the company ought not to
receive from the government what the govern
ment is entitled Immediately to recover back
from the company. To this it is a sufficient
answer, that any right of the government
against its debtor may be released by act of
congress; and, when congress has declared that
the application of "only One-half'' of this sum
shall be required the secretary of the treasury
cannot fall back upon common law, or, by the
pretended exercise of the jurisdiction of court
of equity, violate the statute and say that the
whole sum shall be so applied.
The committee suggest that the refusal of the
company to keep the road in repair and use, per-
form the services for the government provided
for in the sixth section, or to appropriate five
per cent of the net proceeds, or il, at the matu-
rity of the bonds, the company fails to pay
principal and interest, the government may take
possession of the roads.