Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1892-03-31
CONTRACT VOIDED.
Assisted Railways Must Obey
Uncle Sans Laws.
JUDGE BREWERS WEIGHTY OPINION

Decision that the Western Union Cam
not Operate the Telegraph Lines of the
Union Pacific, Regardless of the Adyan-
tages of the Arrangement-Senator
Stanford Seems to Advocate the Gold
standard-A Speech in Favor of a None
tary Measure of VaIue-SiIver Men Still
at Work and Hopeful.
WASHINGTON, March 3l.-The contract
between the Union Pacific Railroad COM
pany and the Western Union Telegraph
company by which the latter conducts the
commercial telegraph business on the
formers lines, must be set aside, if a
decision rendered yesterday by Justice
Brewer, of the supreme court, stands as
the law. The case was begun in the circuit
court for Nebraska, by the title of the
United States VS.. the Western Union and
Union Pacinc companies under the pro-
visions of the act of the Fiftieth congress,
known as the Anderson law" BY that
law railroad and telegraph companies
which had been assisted in any way by
the United States were prohibited from
leasing the lines to any outside company.
Wanted the Contract AnnulIed.
The object of the suit was to annul the
contract between the companies by which,
as claimed, the telegraphic franchises
granted to the railroad company have
been improperly transferred to the tele-
graph company, and also to compel the
discharge by the former company of all the
telegraphic obligations imposed by its
charter and the various acts of congress.
The hinge of the case is this contract and
the primary question is as to its validity.
Justice Brewer discusses the question at
issue at great length, in connection with
the history Of the corporations involved,
and litigation in which they have figured
IN previous years.
Practical Workings Don't Count.
In summing up, the justice says: at is
insisted that the practical working of this
contract is pecuniarily beneficial to the
railway company, and also that the public
interests are in fact subserved by placing
the commercial telegraphic business along
this road in the hands of that corporation
which practically controls the telegraphic
business of the country. Assuming that
both these contentious are sustainable,
and | am inclined to believe that they are.
yet am constrained to hold that though
established, they constitute no defense to
the demand OF the government.
Higher Interest Involved.
Take the first, and assume that the tes-
timony establishes beyond question that
the contract is pecuniarily beneficial to the
railway company; that it earns more
money by its continuance than it would
by conducting through its own employees
the commercial telegraphic business; and
yet may court, by reason of this fact, de-
cline to enforce the plain mandate of the
government which created this corpora
tlon and gave it its power? The govern
ment is, it is true, pecuniarily interested as
second mortgagee, but a higher interest is
that the administration of its franchises
should rebound to the general welfare,
and not merely to the pecuniary interest OF
its guarantee, or even of Itself.
Dollars Not Always the Test.
"The dollar is not always the test of the
real interest. 1t may properly be sacrificed
If anything of higher value be thepeby at
tanned. But whether the dollar be gained
or lost, is not in matter of this kind a
question for the courts? l may only inquire
whether it is within the power of congress
and whether its enforcement infrnges any
vested rights of the defendants. That its
enforcement may mean loss to either cor
poration and loss to the government does
not determine the power of congress or alb
solve the courts from the duty of enforcing
Its mandate.