The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-10-28
ByTeIegraph
ASSOCIATED PRESS REPORT.
TO THE DAILY LNTELLIGEN0ER
WARRINGTON.
The United States vs.. the Union
Pacific II. u.

Fheluc Ats He
WASHINGTON, October 27.-In the Su.
preme Court to-day the government ap'
peal from the decision OF the Court Oi
Claims in the Union Pacific railroad case,
came up for argument, The substantial
question presented by this case is wheth-
or by true construction Of the act OF 1862
incorporating the Union Pacific Railroad
Company, as amended by the act Of 1854,
the United States whenever it pays the
interest upon bonds issued to aid in the
construction OF a road is entitled to en-
force immediate payment thereof from
the company by suit or otherwise, or
whether such reimbursement can be OBJ
tanned only on application Of one half the
compensation due the company for scr.
vices rendered for the government, and
five per cent. OF the net earnings OF the
road after It's completion. Tho company
insist that the latter construction is OBJ
vious and just and duonsequently that II is
entitled to recover the amount herein
claimed, being one half Of the sum
due for tho compensation as stated, The
government does not pretend as asserted
by the company that II may withhold this
half by the force Of any authority to
that effect expressed in the statute, but
solely upon the ground that upon the
payment OF the interest on the bonds 1t
therefore becomes, to that extent, credi-
tor OF the company, entitled to the i'm
mediate reimbursement OF the sums paid, !,
recoverable by suit or offset. The COM
pany contend that the framework Of the
charter, the declared national purposes
It sets forth, the Government control as
Sumed by the Government and preferred,
the public uses to which the work, when
completed, was to be sub bjeCted, aud final
ly, the increased public aid promised by
the act Of 1854, when II was found that
the requisite capital could not be obtain
ed under the act OF 1862 all, II urged, con-
cur to establish that tho work was deem
ed by the Government Of such para
mount national Importance that only by
Il narrow and illibGral and strained con-
struCtiOn, can II now be Conlended that
any OF the Government aid offered,
whether OF bonds or land, should be re.
garded as donations TO the company.
Plainly II Is said they were not such, but
are to be received as reasonable national
contributions to aid In tho construction oil
great national highway along our public
domain, connecting the East with the far
Vest by telegraph and railway. II is
then contended that by the provisions Of
the charter, which are examined at length,
that the company was not bound, either
expressly or by implication, Immediately
to reimburse the government for the In
terest Il should pay upon tho bonds, nor
until their maturity. The Attorney Gen.
eral insists that the plain, meaning and
intent OF Congress, apparent from the
statutes when construed together, is that
the United States are entitled under the
charter accepted by the company to re.
Tain the whole value Of the services ren.
dercd to the United States toward the
payment OF the interest advanced by the
government upon the bonds loaned to the
company. The Attorney General says
that II the judgment below In favor Of the
company is sustained two hundred mil
lions Of dollars will be transferred to the
stockholders OF these roads. II, says the
Attorney General, this Judgment Is sus.
tanned, before n single generation shall
have passed the government will have
paid $3lS,O35,7l4 In interest alone, less
only One.hulf charges for services, the
other half being paid by the government.