Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-03-22
TsH PACIFIC RARLROAD.
Three suits that have Recently been
Decided ia the supreme Court
Defining their Relations TO
the Government.

| Three suits have been decided IN the su-
! preme court--tw0 Of them receutly-defning
! the relations Of the two Pacific railroad com
| pauies to the government, growing out of the
| issue OF bonds by the latter TO the former,
| and the contracts for the construction of the
| Union Pacific road. The first suit involved
INTEREST t.asnEt
| crued. 1t was brought by the Union Pacific
! company, by virtue OF a special act of con-
| gress, to compel the payment bv govern
| ment or one half the transportation charges
on It's account, the latter having retained the
whole IN order to apply 1t to the interest ac-
/ crulng for the company for the sum of
| S5l2 632, being ope-half the government
| transportation charges for 1874, the period
covered bY the SUIT. The court decided In this
case that this interest acccuIog ON the govern
nent bonds was rot debt due from the COM
| pany TIL toe bonds were due. The act re-
| terTed to also authorized a suit on behalf of
! the government against the Union Pacific
| railroad company and parties affiliated with
It, to recover moneys alleged to have been
wrongiuly received in the construction of its
road, the prin cipal object being to reach a
contracting company popularity known as the
'Credlt MoDlher," through the instrument
tally OF which portion Of the road was coz
sGrucjed. The court IN this case decided that
the government bad no cause for action, its
relation to the company being a matter of
contract; that it had the security provided
nothing was due from the company to it,
growing out OF such contract. None of the
suits involved the question of repeal of the
charters OF the companies; but in the case
last referred to, the supreme court declared
thaJ when such question should he raised it
must still be referred to the court for deci-
SION, as the charters reserved rights which
can only be passed upon and determined by
a court OF law. The third suit involved the
question of the FIVE per cent of net earnings.
which were annually to be paid over to the
government. This suit was brought by the
Union Pac fc company In this the
court decided that the road was
legally opened November 6, 1859 |
not October !, 1874, as claimed by the COM
pany, and that net earnings must be esti- |
mated as ordinarily determined, less the |
amounts proper to be expended for the main |
tenanoe and improvement of the property of |
the company, the security of the government /
beng Increas IN ratio to such improve |
pents. The three decisions involved. there |
tore, a mutual accounting by the companies |
and the government, the former beng re-
qalred to pay sum equal to FIVE per cent. of
theIr net earnings from November g. 1859.
and tie later to pay over one-half of the
charges for transportation on its account
since 1913, when the government ceased to
make such payments. In case of the Union
Pacific, the balance due fir m it to the gov
eminent would appear to be about $2,2(O,-
JOO, and from the government to the COM
pany, on account of Transportation charges.
about 81, 10000. The accounts are IN bro.
cess OF adjustment. Tie exact balance eth
II way cannot be determined till final settle
nent Is made.