New-York tribune., 1876-01-24
rIIE GOVERNMENT AND TIE RAILW1YS.

SENATOR VESTS EFFORT TO C.RCUMyEST THE SU-
pRfME CuURI-FORMER PKOPOsITIoNs OF COM
PRO .IsE u IHE PACIFIC RAILwAis-THE COM
MUNICATIoS TO CONGRESS PREPARED on HE
SUBJECT LAST YEAR-wHAT GOVERNMENT TRANS
PORrATION NOW AMOUNTS 10.
lrRoM A REGULAR CORRESPONDENT OF THB TRIBrNE.l
WASHINGTON, Jan. 22.-The Senate Judiciary
Committee are to meet early IN the week to take
into consideration Senator Vests bill prohibiting
the payment TO the various Pacific railroads of the
moneys due them according to the recent decisions
of the Court of Claims and the Supreme Court
on half the Government transportation. Whether
the Companies, notwithstanding the recent and final
decisions in their favor will renew their PROPOSE
ons of last year for general settlement OF all dis
pntes with the Government, is question revived by
the proposed bill. Inquiry at the Treasury Depart
Incnt shows that the close OF the last
session Of Congress the Presidents OF both
the Central and Union Pacific Companies addressed
communications to President Grant. Offering, in lieu
of the obligations of the Companies TO the Govern
ment then disputed, to pay fixed sum scml-annn-
ally into the Treasury TO create sinking fund which
would ultimately redeem the bonds Issued by the
Government in aid of the construction of the roads
hese propositions were published at the tlmo' aid
favoraby commented upon by the press. They
were also favorably considered by the President and
highest degree desirable that litigatlons
sbould cease between the Government and
railroads upon which it held only second mort
gage. and especially for the interest OF the Gov
ernment that an arrangement should he made by
which a fixed annual or semi-annual sum should be-
paid in lieu of a large debt seen only III
the distant future, and to DO practically
paid only by stockholders Of coming
generation. a communication % Congress emhrac-
ing this view and transmitting the propositions OF
tho railroads, prepared, but owing to the
latenes, of the session and the probability that
the introduction Of important new business
might endanger the Appropriation bill and
render an extra session necessary, IL was
finally decided to defer sending it in. Since that
time the litigation between the Government and
the Companies has been finally decided by the
Supreme Court in favor OF the latter, and the
Companies are held to be entitled by
contract to receive their half of the
transportation money in cash, and not bound to pay
either principal or interest Of the Government
second mortg gage bonds until the end Of the thirty
years from their issue. except so far as the other
half of the transportation money may pay the same
which decision Senator Vests bill attempts to
override.
1t is said that the Executive was influenced in the
decision that IT was TO the interest Of the United
States to substitute fixed annual sum for the un-
certain TRANSFORMATION moneys by the fact that the
Transportation service has been gradually decreas-
rg. in consequence of tho rapid settlement Of
the country through which the roads pass,
and the increased facilities for tho rapid trans
fer Of troops, thereby rendering Indian
incursions less frequent and formidable. In lS62,
when the Pacific roads chartered, the annual
transportation to and from the Pacific coast, for
army purposes was 81, 800 400, and the mail trans
portation million ard half more, while i'll 1873 it
was only $4,000 for the army.
The views entertained by the Executive last year
have not changed so Ear can be sscertained; and
in case Of renewal of the propositions Of the
panies, will probably be so expressed to Congress
in the hope of some settlement of the differences
between the Government and these companies upon
an equitable basis.