Year: 1875

FOR THIRTY xEARs-A SECOND MORTGAGE
FOR SECURITY.


| WASHINGTON, Nov 90, 1875.


The sensation Of the day Washington has been the
rendering OF the long expected decision Of the United
states Supreme Court in the Union Pacific Railroad
case which, as Attorney General Pierrepont said in his
argument for the government. involves indirectly
money consideration amounting 10 5000 600 000 Your
money editor will tell you how the stock OF the
pany nucuated in Wall street response the decs-
ion OF the Court Notwithstanding that something of the
effect upon the market had been ''discou ntedn by
the fulfilled expectation OF decision favorable to tho
company. But the


SCENE CAPITOL
here is worth few words Of description. An eager
and anxious crowd OF spectators, Wall street agents.
lawyers and reporters besiegei the door OF the
room promptly at the hour OF noon, when the nine
judges, in all the solemn dignity of their robes of black
silk filed into their nine high backed chairs upon
high bench and looked down upon the sem-circe of
lawyers in 'front.' sitting in the very spot where Cays
and Websters oratory awoke the echoes of the cham
Der when 1t the Senate of the United States. In
the few minutes preliminary to the announcement of
the first opinion the Wall operators and agents
furtively their cipher keys that they might
make no mistake in the messages they were
to flash to the expectant spectators at the
New York Stock Exchange, $50 miles away





road company should be announced. The reporters
brushed up their powers memory for they dared not
take notes 1t is OF the rules of the Supreme Court
that its attorneys clerks may put pen or
pencil TO paper anywhere within its precincts. At
length the first opinion was announced. Heads
thrust forward and hands cured about ears
in the eagerness catch the title 1t was some West
national bank delinquent debtor and heads
were drawn back and ears untrumpeted again sec.
ond and third opinion read, the waiting crowd
taking the nnicton heroicay. AT the fourth opinion
necks were craned forward more and a silence like
that of death fell upon the room when Judge Davis
said, II am assigned to read


OPINION


in the of the Union Pacific Railroad vs. the
United States" On wen. the reading amid deep still
ness When the Judge had reached the portion saying
that the Court would not go back the debates in
Congress- the strong point in Attorney General Pierre
points argument Tor the government, but would abide
by the exact language of the statute and its evident
meaning, and whom he said that If there had been no
bonds by the United the government
would never have hesitaed pay the railroad the full
amount claimed, it was evident that the decision was
going to be


IN FAVOR OF THE COMPANY


and some of the spectators slipped o. court on
tptoe and so telegraphed to Wall street But others
deemed it safest for the end OF the paper the
reading of which took half an hour At length
when the final sentence was read "the judgment of
the Court of Claims is affirmed the whole sour
red out OF the court room at the top of their speed
and fed down the long asles OF the Capitol to the elc-
graph Offices located in the south wing whence hun.
dreds OF messages dashed off to Wall street and
o the evening press the country. The decision
apples OF course, all the Pacific railroads. although
the suit in this instance brought by the Union
Pacific.


THE EFFECT


keep the government out of about $S 00 600 and
the compound interest thereon forabou twenty three
years. when the aggregate of principal and interest
the latter not compounded-wil be due by the CON-
pany to the United States in sum. The original
principal OF the bonds to the roads was about
sos 600 0oo which, with simple six per cent
for thirty years. would make the total of the
company at the expiration Of thirty years $780, 000
As there is provision for compounding interest
the Supreme Court deciding the accrued interest
and principal payable in one sum at the end of
thirty years. the United States will have lose about
$2o 900 meantime in the way of compound interest
and at the end OF the thirty years have only


A MORTGAGE


upon the railroad the sum Of $50 600 600
This calculation proceeds the supposition that the
government will not have been reimbursed by trans
portaton services done by the railroad These SER
vices have been only fraction OF the interest on the
bonds up to this time, and would only the
compounding of interest," that the estimate OF what
the railroads will the government at the end OF
thirty years will prove not far from correct


The following is


THE TEXT OF THE DECISION


This Is appeal from the Court of Claims The
Union Pacific Railroad Company, conccdng the right of
the government TO retain half OF the Compensation
due IL Tor the transportation OF the mails military
and Indian supplies and apply the same 10 reimburse
the government fo interest paid by il the bonds is
sued to the corporation TO aid in the construction OF
railroad and telegraph line seeks 10 establish
by this suit its right to the other moety
The United States, the other hand having paid in
tcrest these bonds in of the cRcded to
the company for services rendered by it, insists on its
right to withhold payment altogether. The ground
which the right of retention is sought be main
tanned is the general right Of sct-on Ii is true this
right, as general principle exists in the government
and is commonly exercised by it when settling with
those having claims against it, but manilesty the
the rules applicable to ordinary claims for services rem
dered the United States do apply TO this contro
versy The bonds in question wero issued by the
United States in pursuance ola scheme to aid in the


GREAT NATIONAL HIGHWAY.
In themselves they do not impute any obligation
on the part OF the corporation to pay them, and
them, an obligation arises the part
Of the corporation to refund it depends
wholly on the conditions which the /
bonds delivered TO the corporation and received
by IT, These conditions embodied in the legislation
OF Congress the subject and IT, a fair nternreta-
ton of this legislation the corporation is found to he
debtor TO the United States the deduction OF interest
paid on bonds can be lawfully made. But II the CON
proposition asceraincd be the govern.
mcnt cannot rightfuly withhold from the corporation
half Of its earnings. In construlng act of Congress
not at liberty TO to the of individual
members in debate the consideration Of the motives
which influenced them to vote for against passage
The act itself speaks the will Of Congress- this is to
be ascertained from the language used. But cour,s
may, with propriety in constituting statute, to
the incidents OF the time when 1t passed. and this
rs frequently necessary in order the reason
well tho meaning oil particular provisions iii IT,
Many OF the provisions in the original 1862 are
outside Of the usual course of legislative action con
cernng grants to railroads, and cannot properly be .
construed without


REFERENCE TO THR CIRCUMSTANCES
which surrounded Congress when the was passed.
The OF the rebellion was in progress
and the country had become alarmed for the I
safety OF the Pacific States, owing to complications
with England In these complications resulted in /
open rupture the loss Of Pacific possessions was
n,An