New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-21
NETWORK DAILY TRIBUNE, THURSDAY MARCH q, 1878

by the United states to that end, and hat upon the
held to exempt from state taxation and whichit
early decided that the franchise OF the Bank of the
United States could not be taxed by state authority II
argued and claimed that the character OF this
State power in that respect. because ii laying a
burden upon Of the functions and instrumenaites
the Federal Government III the exercise OF Federal
power tor the purpose OF carrying into effect Federal
purposes In d. cdng the adversely TO the claim
the company. the Court say:
insisted on behalf Of the plaintiffs that the tax Of which
& complain ha: been laid upon agent q the
he to%tsoH and Claimed thai sue an not
Company created subserve in least the lawful
70 construct and maintain oad and telegraph Line along
the prescribed route and that grants mere made to IT, and
all times transmit dispatches its telegraph line and
pubic stores upon the farosd for the
aS go y a RsTe s e p G a1a s'
use of the for all purposes aforesaid must be conceded
ydsG thar ss OF allure q the ec@pany
par Of them revived y the settay Of is
Treasury the road With all the rights functions
granted TO the company oy The United states which at the
COMPANY might be taken possession 10y Secretary
for the use and osnen Of TIE United State. The
aud control Of the road and Telegraph line With the avowed
f 1 pSn Sa %S eyy ss to 81
10 .ecnre an agency and under obligation
perform oices for General Noiwit
Whole nor N part the property OF the Government, The ow
,sr pd se % ire 81 RE sv a1 o
for the OF enabling the enforcement of The
which we have already alluded-Hailroad Company agt
Pension Is Wallace. pages 81, 80.
So that the company exists, according To this decision
for certain public for certain puhc purposes and
TO enable to accomplish those purposes to effect those
tuted by the acts Of Congress under which 1t exists
pryileses and With the right to acquire properly TO
enable the public according 10 the terms Of
rs engagement which prescribed ID me acs OF
Congress, and which cannot be enlarged by Congress
without the assent of the company. But so far II
serves ends, and ministers 10 the wants aud
OF the Governmental say. as long as 1t mhls these
was organized and authorized to exist ana long
1t is III the performance OF those public duties II is not
TO be touched even by that hand OF irresistible power
Mr. Hosr-T should Ike very much, If it would not be
dsagreeable 10 the Senator from Ohio, TO ask him
question with view OF understanding the exact position
OF the committee ard himself IN this matter which has
been matter Of a good deal OF reflection with me. /
desire Senator IL lie claims in the
of the Government of The United states either
class of corporations which it has elf created, or
under the reserved power TO alter, amend repeal
charter to require of the National banks OF the country
that they shall provide from their earnings sinking
fund for the security either Of general creditors or OF
particular kind OF creditors such bllhOldcrs.
for example any other and provide that that sinking
fund shall be committed to safe custody, either the
custody OF the bank or some other In other Words CON
cedng to the fullest extent that the prohibition against
mpalring contracts u binding upon the Government OF
United either ny the Constitution its
constIaint the condolences Of Legislators, which
SHOULD regard as an equally strong ongatlon Ahd con
cedng that thus corporation has by contract vested
nights, il II not within the ordinary functions Of govern
nent TO require OF cOrporations M whose soyency and
power the future to continue 10 discharge the func
lion for which they created the Government Is IN
terested that they shall make certain provision out u
their earnings FOR the payment OF future debts which
shall insure their solvency IL make my point clear
that the Senator from Ohio would state his views IT,
Mr.. Matthcws-MT. President, am inclined 10 sus-
pect my distinguished friend, the Senator nom Massa-
chusgffs.
lie might well bave asked me II did not believe that
in this case Congress would have q right 10 do that
which an arguing they have not the rght 10 do lie
simply makes an Illustration by substituting TIE Ma
tiOpal banks for the Pacific Railroad Compares. Now.
am arguing the question III reference 10 the Pacific
Railroad Companies in view OF general principles and
the particular provisions OF the OF Congress appca
bic 10 those nstuons. WEat the power OF Congress
may TIE National banks ia question 10 10 de
ernIned Of the acts OF Congress aiIc
thcu the uses for which they created, and the
particulars in reference TO which II IS proposed to make
amendment or the change ] can answer the qnes-
ton Of the Senator from Massachusetts far 10 Is
pointed out by way OF application to my present aiCG-
nent this way that deny utterly the power % CGu-
the debtor pay IT before 1t is rayabie
Mr.. Hoar-I think tile senator does not precisely
the purpose or the extent Of my question
desired 10y putting the question: not to ask whether he
meant 10 admit what nc was just dthylns, ont 70 &c
whether hs argument went 10 ibe fail ieng1h Of DENYING
that PROPOSITION suppose u 10 be rue tiat dtb II
due ia the future ana nor lh the present ana cohceunE
that the obligation or burden o. that dent cannot r
affected, does The senator d,ny tha' u * Mlihih ,he
ordinary just power 0I Government, 'h'r uhuel me
clause the power Ia alter amend or REPEAL the
IN the future, shall De Gin the Of corporation whose
soveucv future the Government has the right 20
require Keep up and provide OrJ shall be secured by
the corporation setihg apart certain p"rl"h 81 rs
earnings ia safe place 20 rOvde ia the fulure Tor me
National banks the charters Of The National banks were
contracts with ne Government, would not The Govern
men have r.ht to reqn.ra tat ont Of the net earnings
every National hank ~ tns country There should 30
set apart sinkng fund, secured ~ the Treasury
elsewhere, which would secure ibe b-Eoidefs against
loss That is tins case eSaetly. -.,...... -, -.
had that u
earnngs should not be required for slc purpose, but
might be devoted az the dIscic OF ING I'M 10 any
ohusets emphatcay In the regatv Tor NE plain rea-
that neither the GoYcrnme NJ nor the Oher party To
the contract his right TO break H.
Mr. IIoaI-N0w suppose, II do not disturb the Sena'
Mr. Matthews-Ho has not, thus far. DO not know
what the senator may do II he Keeps on but am not
Mr. Hoar-I do not with to trespass Now suppose the
this: that certain portion Of the let
earnings should be annually aside, the
eminent might amend, aer or repeal that provision al
election could II not not increasing the burden OF
debt but IMPLY ngng the extent o. the security Tor
the ultimate payment Of the debt alter the proper
ton Gf tie net earnings which 1t required to be Get
aside!
NATURE OF THE CORPORATION.
Mr. Matthews-I shall show which Is more pertinent
TO the sent Observation-Disclosures get through that the
Supreme Court OF the United States, BY necessary i'm
plication If in terms, has decided the very
question 1 am discussing in reference 10 tie railroad
companies, in the very particular on which This dis
cIssiCu hinges, against the view OF the senator nom
Massachusetts,
was going amplify. Mr. President, the view OF
the nature of this corporation decided by tHc su-
prcine Court In the from witch read the extract
the Railroad Company Pension, thar u was per
son IN law. corporate body, WLch had in the birt
place certain vital functions belonging to IL such 10
existence and those rights which necessarily Incl
dent ihat existence as corporation, the right Ia ac-
quire property but that ana above al these there
were Invested tins corporation, ngraftcd into 10,
pcInpOsed upon II, certain public chaactcstICs. obli
cations the public coupled with power TO MIN tbcn
functions Characteristic OF those services. designations OF
certain channels In which II should operate that Ia re-
spcct 10 these public services far as tey were dcs
mated By the statute, the rights acquired under fbc
statute bl ged 20 IL Tor those pnIpo-os, and That bad
all tue properties OF private person bcfider In other
word the status condition of this question before
the senate affected one whit by the fact That