New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-04-17
WASHINGTON.

THE UNION PACIFIC RAILROAD SUIT.
THE CLAIM AGAINST TIKI GOVERNMENT TO RECOVER
FOR TRANSPORTATION TO BK HEARD BY THE
COURT OF cLADIs-LAws AND DECISIONS on
HE sURJECT.
lBr TELEGRAPH TO THE rRIBUyE
WASHINGTON, April 16.-The case OF the
Unon Pacific Railroad Company against the United
States IL assigned for argument In the Court OF Claims on
Monday next The ia suit begun under the aet OF
March 1879, to onehalf Of tho compensation
due the corporation for the transportation Of supplies
and mail and the transaction OF other Government bus
against which United states sets OF the amount
paid by them Pacific Railroad bonds; and the case
turns the question whether tho Pacific Railroad Com
pany Ia liable to pay this interest beyond the amount
Of onehaf the compensation for Government business
reserved by the act incorporating the Company TO pay
bonds and interest, when interest paid to bondhoers
by Government. whether 1t will not become due the
bonds become due in 30 years Attorney General Aker-
decided in 1870 that all interest became at once dine
from the Company when paid by Government, and In
1871 an amendment WAS put on tho Appropriation bill
overruins HIS deoision and directing onehaf
the compensation for Government business to be
paid to the Company. This act was super
seeded by the act Of 1873, directing the Sec
rotary OF the Treasury 10 withhold all payment
Of such compensation and authorizing the Railroad Com
pay bring suit the Court OF Claims to establish the
legal rights the parties under the act incorporating the
Company. Tho case-which excited great interest In
financial circes-wi doubtless he carried IN the Supreme
Court where It he finally decied before next
Winter The present suit il about 100000
The will be argued by Mr.. Sidney Bartlett and Mr.
T. ". StoughtOn for the Railroad Company. aud by MI
HILL Assistant Attorney General, for the United states
In February 1871, tho Senate Committee on the
Judiciary male report In answer to RESOLUTION Oh
December o. 1870 whether the railroad compan es
which have received aid In bonds Of the United state are
lawfully bound to reimburse the United states Tor inter-
eat paid such bonds the maturity Of the prnc-
pal thereof and It also in accordance with resolution
of February 49, 1871 reported to the right OF the
Treasury Department retain all tho compensation for
services rendered the United States by the Union
Pacific Railroad and its branches to apply ON tho
interest OF the bonds issued by the United
States to aid in the construction OF said roads,
The Committee reached the following conclusion: First
that the companies are legally bound to reimburse
the any interest paid by the Government on
bonds until the maturity Of tho principal OF said
bonds except that nehan Of the compensation for scr
vices for tho Government may be retained BY the Gov
ernmen and five per cent Of the net proceeds Oh the
roads must also annually applied to the payments OF
said bonds and interest thereon AMI second that the
Secretary OF tho Treasury right to withhold from
the company than Oneha OF the Compensation que
the Company for services performed for the Government
The Committee al,o used the following words:
The second the mere corollary from
the first hut whether the first be correct or hcortec
whether not the Company - bound now 10 pay tne
the interest naa paid on these D"hus never
theess Secretary OF tho Treasury cannot violate an
in "a many words that only onc-haf OF the conpens
ton services rendered to the Government by sau
OF the bonds issued by the toyernnsnt III e VI TUG I'LL
sruction OF said roads" IL would DO Dod uoalng WAL
tho statute to say that the secretary Oh t9 1T ~ ~
NAV require what Of Congress says shall not DC re-
Iured.