New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-04-17
NEWS FROM WASHINGTON.
CLAIMS AGAINST PACIFIC ROADS.

CLAIMS AGAINST PACIFIC ROADS.
REVIEW OF THE CASE OF THE GOVERNMENT
AGAINST THE UNION PACIFIc-THE QUESTION
AND AMOUNT IN DISPUTE.
| lBY TELEGRAPH TO THE rRrBuNEI
| WASHINGTON. April 18.-.No suit has vet been In.
stituted by the Department of Justice against the
Union Pacific Railway Company. as requested By
the Secretary Of the Interior In bis letter of Febru-
ary transmitting the letter and recommends ations
of the Commissioner Of Railroads In that letter
Commissioner Armstrong says that the controversy
involves the question "What are net sarnines
under the first section of the act Of May T. 1878 ~
and depends upon tho allowance or dsallovsncs
of items fJr new equipment and new construction
for the three and half years ended December 81,
1881, amounting to $2,3s1 ,439.s2, twenty-five per
cent Of which is clsmed to be duo the Government
and has been demanded from the company
After giving the gist of several judicial decisions
| as to what constitute "net earnings" not one Of
which decisions, however, was based upon the act
| Of 1878, the Commissioner says he has insisted
| that expenses for "n new equipment and new con-
struction" not necessary penses paid within
the year in operating the Same and keeping the
same In state of repair and ho has declined to
| settle with the company upon any basis which
deducts such items from the gross receipts
ccrtaining net earnings" The Commissioner says
tnat the Central Pacific Railroad Company, reseiv-
ing whatever rights 1t may possess under the law.
has paid 20 per cent of its net earnings computed
by the Department without such deductions as tho
Union Pacific Company claims ought to be allowed.
The amount claimed by the Commissioner to he due
the United States from the lstter company to
December 81. 1881 is 1901. .s3IO3. The company
claims credits on account of new equipment. and
new construction which IL allowed oud reduce its
indebtedness to the Government on the disputed
count to $306r477 OF. The company, in accordance
with its own mode of co nputatOn, rendered q check
for $69,35s 50 In payment of the balance of its in
debtcdness to December 81, 1880. which tender was
refused by the Government.
The settlement for the year 1882 has not yet been
made, but the Commissioner estimates that it, will
increase the total balance claimed by the Govern
meut and denied by tho company to at least
Sl,50O,O0o. In computing the claim of the Govern
ment the Commissioners has given the Union Pacific
Railroad Company credit for S939014 73 due from
the Government to the Kansas Pacific Railroad
Company (which became the Kansas division Of
the Union Pacific Railroad BY consolidation there
with in January, 1880 for the same PERIOD after
deductng the per cent OF its net earnings upon
394 mil-s-the subsidized portion OF the road.
The commissioner calls the attention OF the Secfe
taIy OF the Interior TO the fact that 1t has been
claimed and urged rpon this Officer that the Kansas
Pacific Railroad Company aud the Denver Pacific
Railway and Telegraph Company should each be
charged, instead of cent OF their net earnings
with 25 per cent under the new act of May T. 1873,
as being constituents of the consolidated company"
The COMMISSIONS cites section l6 of the act of July
2. 1864. which authorized the consodatcn and set
forth its terms and conditions. The consolidation
wa, effected January "a, 1880. The Commissioner
then quotes the first article of the agreement OF
b,ch in hisr for
1880, and says it is under these visions thst the
quest on has been raised whether the Kansas Pacific
and Denver Pacific Company, being consttd dent parts
of the consolidated company, are not subject TO tha
act of May 7, 1873, which requires the payment Of
% per cent instead of per cent of the net earn
ings to the Government and also whether or nos
such 20 per cent shall be limited to the 9i miles Of
the Kansas Paciio, which were subsidized, or ex-
telded to its entire mileage OF 639 miles and fur
ther whether not the 20 per cent requirement IL
to extend to the earnings of the Denver Pacific
which was a land grant road.
The Commissioner says: Z" These roads are con-
stituent parts Of the consolidated company, which
in terms provides that the requirements applicable
to any one of tho constituent Dads shall be applca-
bio and binding upon the consolidated company,
as if the constituent charters were all embodied in
one charter of tho consolidated company" The
Commissioner calls attention to the decision in tho
case of the United States against the Kansas
Pacific Railway Company, in which the Supreme
Court held that bonds issued TO that company were
a lien on that portion only OF the company's road
on which they were issued and that the per cont
OF net earnings is only on the net earnings OF said
portion. The Commissioner also guotes the ian
guage of Chief Justice Drakeof the Court OF Claims
in the cases OF the Union Pacific Railway Company.
in which he said The decisions of the Supreme
Court are conclusive that the Government has no
right to withhold half the earnings of those portions
of the Pacific railroads for which no subsidy bonds
were issued"
In conclusion the Commissioner recommends that
suit be brought with view to obtaining Judgment
for whatever amount may be found Il no to the Gov
ernment, and also t. obtaining judicial construe-
ton of section l of the act of May z, 1873.
CELEBRATING EMANCIPATION DAY.
A GREAT oUTPoURING OF THE CoLoRED PEOPLE
IN WASHINGTON DESPITE THE DIsAGREEABLs
WEATHER.
tBY TELEGRAPH TO THE TRIBUNE.l
WASHINGTON, April 16.-Nature frowned uron
the Emancipation celebration in Washington to-
day the morning. opened with sky overcast with
Clouds the chill wind blew in strong gusts, and
a drizzlng ram dampened somewhat the spirits of
the colored people who were abroad early TO enjoy
the twenty first anniversary of their freedom. As