New-York tribune., 1883-06-06
PAYMENT FOR CARRYING MAILS.
A LoNG-PENDING CONTROVERSY DECIDED IN FAVOR
OF THE PACIFIC ROADS,

WASHINGTON, June 5-Judge Lawrence,
First Controller OF the Treasury has given opinion in
OF the right OF the Utah and Northern Rail-
way Company payment for services rendered In car
ryng mails for the United States. He holds follows
a. The act of March 8, 1878, carried into section
$500 of the Revised Statutes, gives right TO any OFF,
Ger the Government to withhold from railway COM
pany which did not receive aid subsidy bonds Of the
United States the payment in compensation earned by
it in carrying mails though such company Is con-
trollcd" by bond subsidized railway company. (2J
Neither the socaed Thurman act OF May O. 1878, nor
the of March g. 1872 gives any authority to with
hold such compensation from railway company which
received aid In subsidy bonds OF the United States
81 The statutes relating to the bondsubsdized Pacific
railway companies do not repeal In any manner in
terfere with the statutes giving jurisdiction to account
ing officers of the Treasury Department a. The Utah
and Northern Railway Company Is entitled to payment
the United States for its services in carrying tho
mails OF the United States In pursuance OF the regula
tlons OF the Post Office Department.
This declson finally determines in favor OF the Pacific
railroad companies the longpendng controversy as to
their right to receive payment in cash for transportation
services 10 the Government the leased or otherwise
non. subsidized portions Of their respective lines.
The First Controller In his opinion says that the
question In this is important not only as 1t relates
to compensation for mail service the ULah and North
ern Railway but In principal II Affects compensation
and on lines OF unsubsdized nonandg gran roads
owned leased controlled by the subsidized landgraut
railway companies. He continues " The real question
70 determined does to be OF great dif
Guilty In view OF decisions already made by the Supreme
Court. The Union Pacific Railway Company is a land
grant, subsidized corporation under the act OF July L.
1862 act OF July q 1864 Under these acts 1t
became and Il liable to pay at maturity the subsidy
bonds Issued II by the United States, and 1t
der OF 1864 entitled to receive only half the
compensation for services rendered by TO the United
States The subsidy bonds have not yet maturod, and
the supreme decided that under the acts
toned the company is not bound pay the interest
thereon until the maturity OF the bonds, except
as payment NAV be made from such compensation
for services TO the United States and by per cent Of
the net earnings OF the road TO be annually applied
been determined by the Supreme Court under the
acts mentioned that the United states has lien
the payment OF the subsidy bonds only much Of
the line OF any road therein mentioned aided by
subsidy bonds that only per cent OF the annual net
earnings the road aided Is to TO bo paid the
United States and that the Government Ia entitled TO
retain onehaf OF the compensation for services rem
dered 10 the United states by such company only
part OF the road owned by such company but not
so aided. These decisions rest In part on expressions
10 the United States len had In view only the roads
aided by subsidy bonds aud iu giving the United States
IA right a ; OF earnings and retain
one-half the compensation for services 10 the United
states reference was had only to earnings and services
on the aided roads.
These we're the roads TO which Congress was egs-
latng 10 which land and bonds given and from
which alone earnings to be paid and compensation
retained Aud general principles the rights reserved
10 the United by these acts apply only TO the
panes created recognized by these acts and TO roads
authorized aud aided thereby IL the rights OF the United
states 70 compensation for the mall service now In ques
ton were 10 be decided the acts and decisions
ferred TO- II clear that the claimant must bepad. For
certainly H. decided by the supreme Court the United
states entitled to payment OF five per cent OF the
net earnings made a non-landgrant, nOn-subsdzed
road owned by "a land grant, subsidized railway
panv and Is not entitled 10 retain One-half any part
nf the compensation for services the United
states on such unsubsdized road, the United
states cannot retain such compensation
earned by an Independent railway company
on a road merely controlled In this by subsl
sized company The fact that the Union Pacific Railway
Company majority or the shares OF stock In and
coutros the Utah aud Northern aiway Company.
not result stated The rights OF corporation
re not determined by tho question OF what natural
corporate persons Its stockholders unless law
has so declared The Court OF Claims In the OF the
Union Pacific Railway Company versus The unlimited
states and the Central Branch Union Pacific Railroad
ZION should be paid subsidized company for services
ON part OF its road owned, but not
aided by subsidy bonds, and for services
on leased line, aud this regarded as clearly
rect that no appeal from II taken by the Attorney
General. The claimant is entitled TO payment. The
Auditor OF Treasury for the Post ONCE Department
erred in refusing to certify balance due and payable
to the claimant"
The amount involved In this particular
IA S20iG. but the decision settles question involving
several million dollars.