, 1880-06-27
WASHINGTON.
An Important Decision Regarding
Government Transportation on
the Pacific Eoads.
Compensation Should Be With
held Under Existing
Statutes.

PACIFIC RAILROADS
IMPORTANT DECISION.

Special Dlspqtch to Iht Chicago Tribune.
WASHINGTON, D. C. j une 26.-The Treasury
Department has to-day issued a circular rel
alive to the transportation service performed
by the Pacific Railroad Companies which
are of considerable interest to the States
through which the land-grant railroads
pass. The Attorney-General says in sub
stance:
Ftrst-Shall all compensation due for
transportation services rendered for the
Quartermaster's Department over those por-
tions Of the Union and Central Pacific Rail-
roads which were built by aid Of Govern
lncnt bonds be witllheld?. Answer: Yes.
The second section of the act Of May i, 1878,
expressly declares that the whole amount Of
compensation which may from time to time
be due to said railroad companies respectively
for services rendered for the Government
shall be retained by the United States: This
pct was intended t9 change the prcexlS!ing
Shall full compensation be made tor all
transportation services rendered for the
Quartermaster's Department over those por-
tlUns Of roads owned, controlled, aud opcr-
road Companies which were not built by aid
Of Government bonds, or shall all compensa-
tion due for such services be withheld 2
Answer-Though the Supreme Court held
Ion,nnnV tIat the bonds issueti to that corpo-
rot;nn ara mt mt a iion haVnmd the 1fn1th merid-
Ian ,,nr is thn Cnn,nnnv iinhle for 3 npr cent
~ 31+e a. r,,,,~s hornnd tnt nn;nt vet in fhe
fn,in,vinp cass t;i, iIniteI States vs. Dnnver
nnnft;n II t5aiIro,,G II com,,ouT TIA Cart in a
.ot1 hos"1 ;tS eynmnfini' nf TIA rond
f,nm ;nI,;I;tv to hova ita co,nnensot;nn for
Gowarn1nn,,t :: :ou tronsnortntion wifhhsii: upon
tho flct tfnt The EnmDnnV fDenyer Pacific
I";ir"nt v f!omnpnvl was NIT in.lehtad tn the
iImito,i Stotae Tha rnntroI nnt} Iinion "a
c;t;c RaiirnnG cn,nnanies and the branches
rnferrc, ~ IL this innniry ara indnhtni to the
1IniteG Stairs mnon Subsidy bonds. In this
s}ate ~ the dec;sions. / advise the retention
90 ear,.;na e. ,,uar sunI }ronn1tsS a. tint the
snt;o., 1p,, ho ;nI;cia liz. Iafar,n;naI
SHn,i III ooHnansatiun sIma fnr transnor-
+,t;or na, sarv;nes r.n,jarsG fnr tl,e Dmurtnr-
nasts nannrt,na,t nvar fiat nnTtfon nf the
a,'e.s Po;.;4;c Rn;i,oaI AZ 15~1s miles ri
,,h;cI' ,vas % hmiit fs Tho afG of f;nvernment
hn,Gn lGi W. W o,'v ons1,af nf sxrh comnemsa
noa>ta, t;L'.t 20 U;+nM3,'9 ans,rer. aiI comnensa
~. ~. oG a,1i La ,v;1hhn1S nva1. tha entirn
fn',tr+i flo.t ~ +i,;e rnod ,,nder tho Revised
tesmSst et,S9,,t,, - st;,, '' -, farna "A'0~- ~
ol:''9t Hna,I 1, INV - nart and If 81 what mart of
+hn on,"nanaotinn @ tina' fnr trnnsrnrtatinn
ene,,,ooe u.e ren,1araI fnr tho Ouartnr,nas
H,,I.,ant NO. tbat nnrrfon ~ SAID Kansas
poa;fc . Hniirna1 i'll milrs nj Which wer.,
h";it 'r;ti,omt aiI If Gnvarnmant bnnds- he
,,;1i'haj'l Answer. Ear the reason intii-
ecta,1 =, ,,,S ra,1v 10 +he eannn, nnestinn +
cate9 ~ NY iepy " tao ia1 SeEu" ~ ,s.;th,5,
e.llth Ill., * rt;It, nF tIo} roaI oe waii no tn
th.t - +, 'iJ III - nsi,inh hont1s wern issnnd
1lizs 49, w t;tt ~ ,aetin,, stofae thot re Kansas
luuI 1llt 4etoL4' 5t.tGo t.4..s ~ - tH'.o ~