New-York tribune., 1876-06-05

Auuv
question q, tne Kansas Pacific Railroad against
II the case caseut,see o G03J the United states supreme
Prescott o "af the acts OF s62 and 1864 the ollgnal
ss amendIen, 1 the twenty second Section OF the
sct ~ as4 should he construed as o me e therein
ec oi ioos ioo,h lection of the act OF 1867 were lueo
te nd What gives additional fOree 70 ts etM %
G TACT that the act OF dSo w VIZ ie and NOT
nal Prn,ns aud restrictions, as clearly appears Aon
= ad1 pu ' of rae amending act ,,o, ,,,o c,orse
be Whole sowever this he not so ana that tls cause
Suppose n and unaffected by the above mcnuohea
ssnds ~ teTpretation, ia 1t without hmit' ana mus
so tie gn9S STsnateu Of the act of 1s6i shows that
is no PROVISIONS for charterins any comiahS nor
enfs sny franchise Ia act as e9ipoi aon, u'o ,1 -
enhis nontrtct granting certain additional fshts ana
u.bj,a ne some onerOus cOhuoIs ~ .,o "ot W Ios
ssuisrgne the grant Of lands. BY u inc Sonpates
snn en to- issue first mortgage bonds on tle
Ss IN an amount equal, mile per nue' 70 ue S ~ -
toAas hnds issucd and subOrdinang the hen OF tIe
hands o the eCn of The first mortgage poAus'
sonears by the tenth section OF the aet. , ,,tor
a. ory view subor,nated the principai ana inter-
- u" he 11vernment bonds the principal anu lntcLosP
~ lie first mortgage bonds, ana INTRODUCES @ nc" pS
y, io % nrrt to Wit The holders OF the hiSt mortgage
70 nc hn toot them ON the faith that the Government
tLe United States had made them IA ~ 81 IN, t 4oy
Pee except as to e a. s sxfh section OF the
OF iaG2 The Government also aSfee Win .io '', t
enies that, instead of the we9e go ,mc"i Of the
ernment ser vice being applied 10 tHe pay "vh' W tHI
,svcru,neut bonds and interest onlh on0-, & "a Trt %
Ths Union Pacific Railroad Company ast
WE ITnitsd states held that TINS ainehuniehI W WIZ
act SO as TO allow the Government To retain
sac of fne compensation for services rendered.
m fhe GoysIrme ent consents to the dminution OF Its Sc
curly Tat on hall Of the prices a1e iG ssryfe; & TO
o@e Of the other half sgre there IS no Implication ai hs e
Nsnifestly the companies who earned the money
CAN THE LAW DE CHANGEDf
TIE oneston before your Committee Is, whether, until
4esut has actually occurred Congress can MAKE any
tration OF the law as il stands without the con-
zen and approval Of the companies first haa ana op-
to. ed One OF the companies-the Union Pscitc-was
rporated and aided by the act by grants Of lands and
,ds The other-the Central Pacihc-was state cor
Grafton then in existence under State law and was aided
by similar grants OF lands and bonds. bn ala not derive
its existence from ans act o. Consfess lVse ros W. ~
tue body of acts for hcir construction ard 10 secu
o the Government the Use OF the same for postal n
" an other purposes; and the fair construction OF
acts would seem 10 be that the power reserved 10
of failure ON he part OF the companies 70 construct
III roads keep them in oIdof so that the Govern
,aspt would be deprived Of she and bened thereof
r. ees 10 settled doctrine that grants OF the nature
those made TO these companies are contracts, wEIch
G G noi TcHyed and IL reserved absolutely. that still
sueo reservation Is not without lilnit. ,,.., CO.,
that no person shall deprived OF his properly wthon
Gu process of law tas administered by coMs 3l
icr definition If due process Of Law IS that 1t means
law in its regular administration through courts jus
public without just compensatory .utyr M, ~" 'u ,
form part OF every contract aud hmlt any power IT,
aprN al ID nu.alt
Whet' tLen. can Congress do In the cases provided
or in ne act of 1862 in % default Congress might
Copany Of its iraucis act corporation, but II
eri not dve>t eitLer company Of any rights already
vested, deprive the col1oIa,ors OF their properly
aoT impair the rights Of their creditors.
4 the provision OF the 4ct Of 1854 nc 10 amending
so TO be construed inted by the provisions of the
former act must be confined to the provisions OF ta
sct and be limited by the constitutional PROVISIONS above
ref rcd to- There is provision In the act of lS6l
granting franchise 10 act rs corporation IN tLe view
Of the COMMITTEES, il is contract modifying TIE Prov
S-snded rpeaisd without Infringing upon the pro-
n ne cas- oI Tcrrett aet Taylor @ Cranch 5O) 1t
he'd that legislative grant Was not rcNcca,le
hr Justice story, IN giving the opinion oi the court IN
the Legislature possessed the authority make such
se.d an iaieisas6e and rreyclabo ttle We have
kDoSleGee Of any aa.acniy principle %ci c29 .HPfC''
snd held only rSre 5ess plseo sn,n decIrne would O
gnia ard utterly ueol sent win great aud ssdne td
enjoy OF tIer properly legally acquiod
Rice rs lsalrUad COM day Il BLACK. dJSl, 1t was
a. pcrcss pass az act granting public lands Territory
to aid in making railroad, aud by tine true cunstruc
erest in the lands rs coutradisiiuguiscd from mere
naked power TO srosc Of thein or certain se,
hed USES and purposes the sci is rcpeaa6c ana SUI
tequent act attempting to repeal II Is void, o
In 1880 tie United tates granted by act OF
the state Cr Arkansas ali the swamp amt oNerhowtd
Coycrnmcnt LANDS within It's nits condition that c
,.ceds o the lands or te lands Themselves, should be
sIneI as far as necessary. Ia retaining tcm FOR cult
rton bX means OF lcvces aud dIj4ihs. The STATE ac-
Ia ne gr,ut In the case Of MCGEE rs. Mathis G.
wallace, I5j). the supreme CSnrj say
Il not doubted St grant by uie United states to The
soIe coatac,. All iho elements OF contract
mel IN tn transact N eompt nt parties pIore SUP ecnat
NC. was binding uu tq STAT ana eo1a no. o. violated gy
DAVIS Gr.y, 10 Wallace, 20J Loan Asso
Iii, IA I; " ynelaner g. Peopi,, lS y. y, S92.
IN Bar;e,ueyer Iowa 10 Wallace l3Ol, Mr. Justice
thss be ne the fundamental law Of this country that life
bl r.y AMI e'org (which iue ads te purst ei hAgpl
Ltss - ale s@cre TgtN winch te constitution % ,Ls ISa
slate guSraGtees 10 It's hembes G'zen az INST Cptssye
ri ed 4 Iheln without due proc, s. GJtau.
supp 80 Congress should arbtrTiiy fix sum that the
JmpAsles should pay Annually or seiui-2nnuaily The
.T lie pavmeT f he SIM, So fiXcd 1nIrt deryc tho
COMPANY 0f the ability 10 pay the interest Oh the rsi
mortgage bonds which Congress has auth0lze4 to be
TrcdiUr bc cut on The only remedJ then would be ior
e Government 10 chase Inc property at The sale and
IN q. road, winch event is u be avoid a.
II Congress the poTer arbitrarily to fix sum that
the comp,nes shall pay, 1t may hN sum equal to the
entire earnings 0l road. II II may say that the
T. be paid sua be sufficient 70 reimburse the Govern
nent in p years. may say that the payment shall De
snncient reimburse the Government In 10 years. Ia
ne, may stat It's bonds, which IL has uDoidnated
70 the cn oil the first mortgage bonds snail he pad iy
we companies before the nret mortgage bonds become
due.
IT, therefore the power Of Congress to provide addi-
nOLa u aus fUr the ultimate reimbursement OF the
Uh "a states against the consent of the COMPANIES docs
not exist, or Is SO doubtful that attempt made 10 eei
te Companies, that arrangement which shall bc
81 ACOr and executed by tue companies
be, the question arises what practicable and beuebCai
reement can be made Various propositions have been
made by the companies.
PRoPOsIu MS OF THE COMPANIES.
THO Union Pacific Railroad Company, Feb. 0, 1875
proposed first, the OF about 100000 then in the
Treasury but due the Company from sporaton and
nail service, 10 be used to commence sinking fund TO
credit Of tine Company second. the Company to pay
4 10000 per FOR years from July /, 1878 ;
80 600 per anuum for ten years from July l. lSS5
OUO 900 per auuum thereafter ymouts 10 be- made
sa,annlaly, and interest 10 he compounded a. per
on the amounts paid, unit! the sinking fund shall be
sual 70 the full amount OF the Government InOI-p.e