New-York tribune., 1879-01-28
THE UNION PACIFIC RAILROAD.
4 DECISION FOR THE COMPANY.

4 DECISION FOR THE COMPANY.
THE DECREE or THE COURT OF CLAIMS REVERSED
BY JCsIICE BRADLEY OK 1HE SUPREME COT gT
THE COMPANY 10 PAY THE GOV vERNMENT PER
CENrAGE ONLY FROM EXCEss OF NEI EARNINGS
-pECIsIoNs IN OTHER WESTERN RAILROAD
SUITS.
W,,HINGTOv, Jan. 27.--In the United States
Supreme Court to-day the following decisions were
rendered in the cases O the Union Pacific Railway Com
pany.
Nh -36-The Union Pacific Railroad Company appel
lant against the United states. THIS suit brought
by the Union Pacific Railroad Company in the Court OF
ccover from United states under the acts OF
Con0reos OF July Q lS6i and March g. 1871 Ouebah Of
the compensation due IL for the transporta-
tion OF mails, troops supplies and munitions OF
war amounting to 100000. As defence
the Government set up a counter clam
under the sixth section of OF July l. 1862 to
ur cent of the net earnings of said road from the date Of
it, completion November g. 1869, 10 November q. 1874
smouutne to 81 900. This claim the Union Pacific
Company resisted the ground that It's road was not
CONNECTED in 1863 a. alleged by the Government, but
W. Veil as its running expenses. should he de
Quoted from its gross receipts, III computing
srates was entitled to receive a percentage. 4
trial IN the of Claims resulted IN victory for the
Government. that court holding tai TIE ROAD WaS com
peted in 1869 and that the Government was entitled
10 receive the difference between half coinpen-
n,uy and tro ul amount 0I Its counter e!ain. Prom
mat decree the Union Pacific Company appealed The
questions presented To this Court for decision are
1 When was the Union Pacific Railroad Completed
. What should included in the words " net earn
3 How and under what conditions payments to be
mi. Court in a long and carefully prepared opinion
delivered by Justice Bradley, holos as follows:
l. Tha although sense Of the word railroad IL
never competed I'm such way az to make FUR
ther improvements or greater pereciion lmpos,
ahn nj 4 h1an nf.fFT nod n
t fUr th and MIN sections of the Act OF s62, and an
other thing the sixth section III the rosd was COM
nsted In ,uch sense cptitle the company TO
ceye land grants and subsidy bonds from the Govern
ment, 1t also completed Ia sHcn sense az u ent
pcr cent OF net earnings. Ihs conclusion -, IN
me ornion OF the Court 50 obvious. that 1t needs
No argument Tho nndings Of fact IN the court
below' shew that the COMPANY through lt,
knth nf the several sections its road and
s whole line prior 10 November u, 1862 and that upon
the strength of these represent onS, and OF reports
made by commissioners appointed To- anime tine rUad.
n was accepted by the President and subsidy bomb
and patents for Land grants upon tile whole completed
line were dav lssaed to the company. Toe laIter II
thus e-tOpped nv ts own acton Iom pehlbg 1conpe-
ton. stranger of estOppel could hardy DE pre-
,. What should he included in the earnIngsi The
court nods III teny qu"st,on. that the ealn
of tr road should inclue all sums receivable by the
company from the Government Tor sefv rendered,
but the income or prOht derived from ts lands,
in In ccmput tlOn of net earl Iugs there sboud be
deducted ffOm this gross sum the necessary expenses
VI operation ali expenditure Tor ordinary Improve
incnt repairs, te1pen'liIHrcS artlhs Out Oi Inc
coufpany's iand department. nor interest upon ITS
ianuaed mdeDtedu,--. The latter the Court holds.
y not vr0ery char geabe us receipts IN computing
net earnings. hic thus d cillng against me company
ON this ppint. the Court - clearly Oi inpiniOl,
3 IhIt tire earnings Ihus computed are t0 he
atplird hrst To payment OF The annual interest
u A., first tgaee BOMBS, and not 10 the payment
,f fnr = Der cent claimed by the Government. The
soat b"ds TINS 10 Oc ihe legitimate effort o The GoN-
,reui- waiver of IT. own pri0fiiy Interest accruDg
on the nrst bonds IE nightly pay
an, out Ol tue net earnings - Is he > per cent
r thf The net earnings 70" und ont
d. wr both 10 be paid, nut u toe uud Il adequate
ot 10 tb. p.l OF Que, interest on the hr~t
ruortxIgr bonds lrs precedence, Otierwise the uhpb
Go. .ruuruI rDt might he iari Ia tie EXCLUSION ul toe
hrs nnrtaagr WntcH H. admitted 10 have priority. eurn
, r..I.t Ku,d h. manfe.ty absurd. Tie Government.
cl n' that II thosr = not -'irieht rif
"a IA oT net IN one year 10 IS'r crnt due
Tor fnat wear it may he carried oye 70 sur'eeninE
ycn ana taken ont ut the surplus Thereof This position
H. ourt holds 10 uuteHaDe. The statute makes tie
.upnruti1n an annual II the year produces net
csiung- >.nrtcnt for tue purpore, me Government