Lyon County times. [volume] (Silver City, Nev.) 1874-1907, 1875-12-02
IMPORTANT RAILROAD DE.
CISION.
WASHINGTON, November 80.

Union Pacific Railroad VS.. the United
States, was delivered by Associate
Justice Davis, as the unanimous ex-
preston of the Court. 1t opens with
d, statement of both sides of the case,
which involves the retention Of non
retention by the Government Of hall
the compensation due the road for
transportation of mails and military
and Indian supplies as reimburse
ment for interest paid on bonds
issued to the corporation to aid in
the construction of the railroad.
One of the grounds for the retention
is the general right OF offset. /" 1t is
true says the Court, "this right as
a general principle exists in the Gov
ernment, and is commonly exercised
when settling with those having
claims against i, but manifest y the
rule applicable to ordinary claims
for services rendered the United
States do not apply in this contro-
versy. Ise beads in question were
issued 10y the United States to aid in
the construction q u great national
highway. IN themselves they do not
impute any Obligations on the part Of
the corporation 10 pay them, and
whether, when the Government has
paid the interest cn them an addi-
,ional obligation arises on the part
If the corporte on to refund it, de-
pands wholly ca the conditions on
which tie bends we're delivered to
thc corporation aad received by it,"
rhe Court goes on to review the
legisiat.aa OK Con yress and the rea-
SONS which made imperative ma
tianal hi ,hway h the Pacific, which
would bind together widely separated
parts Of the couary and furnish l
cheap mode Of transportation i"r
troops and supplies: 1t WAS felt
hat tie Co.er1meut could not jusl.g
ls4are She necessity of building TINS
road. % a.raas and prevailing wao
This opinion tlat x is by no means
certain that tie people would not
nave sanctioned the action Of Con
sress had i; charged the Government
Itself with the direct execution Of the
enterprise. Besides, there was a vast
appropriated territory lying between
the Missouri and Sacramento rivers,
practically worthless without the
facilities afforded by 81 railroad for
transportation Of persons and prop
erty. With its construction the agri-
cultural and mineral resources could
'ae developed and settlements were
possible. Cheaper transportation
was needed for mails and supplies
for the army and Indians. The
building of the road WAS deemed a
bold and hazardous undertaking. 1t
was nothing to the purpose to say
that the difficulties disappeared in Il
great measure after trial, aud that the
road was constructed at less cost Of
time nd moaey than was considered
possible. No argument can be drawn
.rom the wisdom that comes after the
fact. The project was not conceived
for private ends, and the prevalent
opinion was that ii could not be
worked out by private capital alone;
is was national work, a national
necessity, requiring national assist
ance. The policy Of the Govern
ment, to say nothing of the subse-
quent want Of power, stood in the
way of the United States taking
the work in its hands, and evce If
that were not so, the reason Oh econ
omy suggested it was better to enlist
private capital and individual enter
prise. True, the scheme contem-
plated profit to individuals, for
without reasonable expectation of
that, capital could not have been OBJ
tanned, nor the requisite skill and
enterprise; but the Government sus-
tanned the enterprise to advance its
own interests, and it endeayored to
'enllst private capital as a means OF
securing the building of a road to be
used for Government purposes.
Whatever obligation, therefore, rested
on the company, must depend on the
true meaning of the enactment itself,
viewed in the light of contempora-
neous history" The Court goes on
to construe the Acts incorporating
the company. Even the title to the
original Act Of 1869, which seems to
be the subject Of special considera-
tion, declares the national character
OF the work. The body of the act
contains the expression that its object
is to promote the public interests and
welfare, and to secure to the Govern
ment at all times, but particularly in