The New York herald., 1875-10-28
THE UNION PACIFIC.


the United States government appears in the attitude
q an appellant came up in the United States Supreme
court to-day for argument and final decision
Last spring The Court OF Claims decided as It's con-
cusons Of law, that the railroad company should
cover the onehaf Of s transportation accounts against
the United States, and that the counter clam or the
United states should be dismissed The United States
claimed the right to deain the whole amount
OF such transportation accounts and apply
II upon the advances made In payment
Of the interest accrung upon the bouda The
Judgment Of the Court was that the claimant
recover Of the United States the sum Of s512 e32 So
The government appealed from this decision thus
bringing the before the Supreme Court The argu
ment on behalf OF the government was made by Aor
ney General Pierrepont and the one in reply by E. W.
stoughton The judgment OF the Court in this case to
quote the brief Of the Attorney General viii determine
the disposition Of far more millions or money than
were ever determined by any single judgment before
and the moral and political consequences which must
follow will largely outweigh all the pecunsry consdera
ons More than 5000 600 900 will be taken from the
pockets OF the people and transferred the pockets OF
the stockholders Of the Pacific railroads II the Court
anlrms the judgment below. More than $780, 600 900
richer will be these favored corporations II the Court
gives the statutory constructions which they claim
THE SUBSTANTIAL QUESTION
presented by this case Is whether by the true
on of the act of 1862 Incorporating the Union Pacific
Railroad Company as amended by the act Of 1864 the
United States, whenever pays interest on the bonds
issued to aid in the construction Of tho road is entitled
to enforce immediate repayment thereof from the com
pany, by suit or Otherwise whether such reimburse
ment can be obtained only by the application Of one
half tho compensation due the company for services
rendered TO the government and five per cent OF the
net earnings OF the road after its completion.
ATTITUDE or COMPANY
The company insist that the latter construction Il
obvious and just, and consequently that il is entitled
TO recover the amount herein claimed being one half
the sum due for compensation stated The govern
ment does not pretend, as asserted by the company
that may withhold this half by force OF any authoriy
to that effect expressed the statutes but solely upon
the ground that upon payment OF the interest upon the
bonds it thereupon becomes TO that extent creditor Of
the company, entitled TO the immediate reim-
bursement OF the paid recoverable by suit
or offset. The company contend that the frame
work OF tho charter, the declared national
purposes II sets forth, the government control as.
sumed the government aid pronered the public uses
to which the work when completed was to be sub
tected and, finally, the increased public aid promised
by tho act Of 1854 when 1t found that the requisite
capital could not be obtained under the act OF 1862-a
IT is urged, concur to establish that tho work was
deemed by the government OF such paramount
national Importance that only by narrow. illiberal
and strained construction can II now be contended
that any OF the government aid afforded whether of
bonds or land, should be regarded donations to the
company Plainly, it is said they such, but
to be viewed reasonable national contributions
TO aid in the construction Of great national highway
along public domain, connecting the East with tho
tended that by the provisions of the charter which
are examined at length the company not bound
either expressly or by implication Immediately to re-
imburse the government for the interest it should pay
upon the bonds nor until their maturity.
POSITION OF THE GOVERNMENT.
The government maintains that the railroad COM
pany is q private corporation with enormous grants
and privileges, whose end is private gain patriotism
be left ou; that to the gift Of the valuable fran
chse added principality of lands: the exclusive
right to all the vast business of the government with
out discount from individual rates besides some
N han 0uobt
build every mile of the road-eaving this whole colos
sal power and unmpaired wealth in the hands OF the
corporation, lasting monument OF the lavish of the
corrupt enrichment OF private individuals at the ex-
pense Of the public. But not satisfied with this
and embodened by IT, and using means now known of
all men, this corporation invaded and subjugated the
Congress of the United States and procured the passage
OF the act Of 1894 which grants very large additional
donations and privileges The Attorney General
submits that the plain meaning and intent Of
Congress, apparent from all the statutes when
construed together, is, that the United States
are entitled under the charter accepted by the COM
pany retain the whole value Of the services rendered
to the United States toward payment Of the interest
advanced by the upon the bonds loaned TO
the company, and that # the judgment below in favor
Of the company for onehaf the value Of the services
rendered is To be sustained, then 5000 600 900 will be
taken from the property Of the people and transferred
pockets Of the stockholders Of these roads Never
before says the Attorney General, did suit involving
such vast interests as this come before Judicial
tribunal The results of the determination here to be
made do not end here. The company owns but one
part Of the great Pacific road The Central Pacific is
Of about equal length, and 10 these roads and their
branches the government has already advanced
$64 623 512 in bonds bearing halfyeary interest If
this judgment be sustained before single generation
shall have passed, the government will have paid
these companies $318 035 ia in interest alone less
only half the charges for services the other half
being paid by the government besides while the people
suffer and industry IS paralyzed by the heavy taxes
imposed enrich the favored recipients OF these pub
lie bountes.
THE ORAL ARGUMENTS
The oral arguments to day chiefly addressed 10
the following leading points,
Attorney General Perrepont opened for tho govern
ment and argued that the railroad company being
corporation therefore II there distinct provision
in the law which allowed the company credit on the
interest until the principal is due the Court must
der former decisions corporations give the gov
ernment benefit Of the doubt and make the interest
coecabe fast II falls due and Is advanced by the
government, the ground that credit being pro-
vded for in the act Of Incorporation the creator
corporation must have all benefits not expressly given
away
Mr.. Stoughton replied for the company going into
the history of the efforts of the government
open communication with the Pacific coast nrst spend
ing large in explorations, then in constructing
wagon roads, then in making surveys for the railroad
and eventually creating the corporation the
road When its annual expenditures for transportation
that line were over seven millions per annum, and
the government TO reap reciprocal advantages
from the execution Of the contract II could not be
brought within the rule prescribed for other corpora
tions, the government could not demand anything
than had provided for in the Of incorpora-
ton, which acts also made contract with the
pany.
He was followed by Sidney Bartlett OF Boston who
supported this position in argument of hours
length and mentioned that there not only no
authority under which the government could make tile
demand, but there were express provisions Of law pro-
viding lust what IL could collect and beyond the five
per the net earnings and the half Of all govern
ment business, the government could not 20.
Mr.. Perrcpont then briefly reviewed his former