Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-05-04

the government, and in explanation and
justification of its views that there is due |
the company sum largely in excess of the |
amounts claimed in your letter to
be due the government, it may be proper
to state the Citations between the parties
as they stood at two different periods,
namely, Eunder its original charter, be-
fore the passage of the so called Thurman
act" and under the amendments made
by that act, prior to July 1, 1873; when the
Thurman act took effect, the company,
under its charter, was entitled for per-
forming postal service for the government
to fair and reasonable rate of compen-
sation, not to exceed the amount paid by
private parties for the same kind of ser
vice. The government commended that
Notwithstanding this provision, the post
office department had the right to fix the
compensation of the company upon its
own view of what was reasonable and to
the same extent and in the same manner
as it prescribed rates for all other rail
ways. The question has been submitted
to judicial determination and the supreme
court of the United States has disaffirmed
the view of the postoffice department and
affirmed that Of the company. Therefore
stated pursuant to this decision between
the company and the government up to
the 1st of July, 1878, and if that account is
Justly stated shall leave, as we are
confident it does, very large sum of mon
ey due the company, it would be severe
and hardly just course for the government
to claim that notwithstanding the sum thus
due the company, upon which the govern
ment allows no interest, it was its duty in
disregard thereof to make the pay
ments required by your let
ter in assumed compliance with
the Thurman act, when, as will be seen
hereafter, the actual amouts payable to the
government under that act can only be as
| certained when the questions of what con-
stitutes reasoable rates for transportation
of mail shall be judicially determined, the
| sum due to the company for postal SER
vices prior to the Thurman act will be
definitely fixed and at once payable to the
| company.
1t should be added, that at the date in
question, there was also further admitted
| balance due from the government for
| other services, which we do not refer to IN
detail, but confne ourselves to the question
of postal services. The company has caus-
| ed it to be stated, an account made up to
lsJuly l, 1873, upon the principle that
| compensation should be fixed with refer
ence to express service as being most near
| ly the same kind of service referred 10 in
its charter, and it resulted, that the
amount due from the government is
| 81, 684,991. Of this amount it is admitted
| by the government that at rates attempted
to be liked as above by the postofice de-
partment, there is due to the company
| 1854, 101, leaving IN dispute the sum of
! $620,S90. The question whether the stand
ard adopted by the company is a sound
one, remains for judicial determination
| by the court of claims, to which the cause
has been remitted, since it was declared
| by the supreme court. Some other ele-
ments may possibly be shown, which if
shown, would affect the question of rea-
sonable compensation.
Next, as to the the count between the
| government and company, since the
| Thurman act went into effect, down to the
period ending Dec. 81, 1888, to which pc
riod the account stated in your letter is
brought. The Thurman act prescribes no
rate for postal service, but leaves the COM
pensation therefor to be governed by
the original charter. It prescribes by
the fourth section, that there shall be car
ried to the credit of the sinking fund,
therein provided for, on the first day of
July of each year, one half compensation
for services, including the postal service,
rendered for government, not applied I'M
der section I'd in liquidation of inter
est, and in addition thereto, there is
to be paid in the treasury to the credit of
the sinking fund, $S50,000, or so much
thereof as should be necessary to make the
| per cent. of the net earnings of its road
payable to the United States under said
act of 1862, and the whole sum earned by
it, as compensation for services rendered
for the United States, together with the
sum by this section required to be paid,
the amount in aggregate to be % per cent.
of the whole net earnings of said railroad
company for the year ending the 3lst of
the December next preceding.
Now, it is shown that to determine what
constitutes % per cent. of the net earn
ings, the amount due for postal services
must be ascertained, and the question, as
above stated, is still pending for judicial
determination as to rates, which shall con-
stitute reasonable compensation. Any
claim, therefore, of the government, for
immediate payment under the Thurman
act, must be based either upon conjecture
or upon the rate OF allowance lot pOStal
services fixed by the postofice department,
which the supreme court has rejected; or
upon an allowance for service at express
rates, as claimed by the company.
Adopting the rates thus claimed by the
company, the directors have caused the
amount to be stated for the entire period
after the Thurman act took effect, down to
Dec. 81, 1882, the period at which the
amount transmitted by you ends, (which &C
count it will furnish you If you desire.
This account shows that the whole amount
due the company for postal services dur
ing the period and upon the principles
above stated, as $4,65O,O27. Deducting
from this amount of postal services as
fixed by the department., under the rules
applicable to all other roads, $1,911,138, it
leaves the sum in dispute between the
) company and the government for this
: period, S2,738,889.
1t is to be noted that your account does
not credit the $685. paid in by the CON-
pany in July, 1881, and referred to in youI
letter. The sum stated above, $2,738, $3.50
, it will be seen, is far in excess of the bal