The daily gazette., 1879-05-07
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~ ABSU RSAnB VAoWs
1853 WASHINGTON, May 5, 1879. ~
In the United Ststes Supreme Court
to-day 3 decision was rendered In the
cases Me- 012--Ths Central Pacific
RailroNd Company et H., appellants,
AGAINST Albert Gelatin; appeal from the
Circuit Court Of the United States for
the District Of California, and No. u ,063
The Union, Pacific Railroad Company,
appellant, against the United States; ap-
peal from the Court of Claims. in~i+,
STATEMENT or THE CASE. ,,is,,
VI Thesatwp cases, which were argued
together, involve the constitutionalify Of
the 20 called Thurman act of May Z, 1875
The object Of that act was to secure the
lon and Central Pacific Railroad Compall-
les by providing twenty-five per cent Of
the annual net earnings of those roads,
including the whole of the compensation
due them for services rendered to the
government should be paid to the Treasu-
rer of the United States, TO be by him
applied partly in payment Of the accrued
Interest upon the bonds issued by the
government TO the two railroad compan-
les and partly to the establishment of q
sinking fund in the United States Treasll-
ry for the final payment of the compan-
les bonded Indebtedness. The decree
in the first named case and the judgment
in the second are affirmed by this Court
with costs. The decision was announced
by the Chief Justice. No written opinion
was rendered, but; one will be filed in
due time. s~',f{~E fni t5 -- pfN-
,DIssENrIN0 OPINION.
Mr.. Justice Field dissented from the
by Messrs. j Justices Bradley and Strong.
Ths grounds upon which he disssnts are
First- Because the set of Congress Of
May Z, 1873, which the decision sustalns
cbanQes the contract between the United
Stat~s and the railroad companies and
the contract between those companies
and the holders Of the frst mortgage
bonds. ID Rttt. F' q.tfH fst'i -
Sscond-Beoause the decision in effect
declares that the United States are mot
bound to keep their contracts, and
whether they shall do 70 In any case Ii .
question Of policy and not Of duty-A
doctrine which will, in n :. Justice Fields
opinion, subject the government to just
reproach and bring only evil upon the
Third -Because ;he act Of Congress
which the decision sustains interferes
With the right and power Of the State OF
California to control Its ewn cooperation.
The Central Pacific Railroad Company
Is corporation Of tho State, created un-
der Its laws In 1851, before the railroad
acts of Congress we're passed, and de-
tion 10 the United States being simply
that Of o contractor, yet by reason of the
fact that 1t has received, pursuant TO con-
tract, bonds of the United States, pay
able thirty years from this date, the act
Of Congress requires it to deposit each
year in the Treasury Of the United
States over miln N Of dollars ~ secur-
ity for the payment not only Of these
bonds when they become due, but also
for the payment Of bonds issued by the
company to other parties, many Of which
are now held in Europe-a security
which those bondholders never required
and do not now ask; and provides that II
The officers of this State corporation
shall pay ordeclAre any dividend until
they shall have fiPt made this deposit
they shall be punished by fine and i'm
prisonment; and this Is passed in the
face of State law which for years be-
fore required, and still requires, the Gre
ataon Of fund in another way for those
bondholders, and which law has, since
the competition Of the road, been always
obeyed. The act in question being de-
clared valid Mr.. Justice Field cannot
see that there Is any limit to the powers
Congress over the State, or that there
can Be any legislation by the State with
which, under some pretence, Congress
may not interfere. s-al--W
When the opinion of the Court II pre-
pared Messrs. Justices Field, Bradley
and Strong will all f1lo dissenting 0pin-
ions stating more fully the reasons tor
their nOn-concurrence.