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aforesaid, westerly from a point near Marshall, and towards San Diego,
in the State of California, on the line authorized by the original act, 100 mon secu- and so prosecute the same as to have at least one hundred consecutive tive miles to be miles of railroad from said point complete and in running order within in running order within twoyears, two years after the passage of this act; and so continue to construct,
100 miles each each year thereafter, a sufficient number of miles, not less than one year thereafter. hundred, to secure the completion of the whole line from the aforesaid
point on the eastern boundary of the State of Texas to the bay of San Diego, in the State of California, as aforesaid, within ten years after the passage of this act; and said road from Marshall, Texas, throughout
the length thereof, shall be of uniform gauge: Provided, however, That Time of com- the said company shall commence the construction of said road from pletion, 10 years San Diego eastward within one year from the passage of this act, and
2, Uniform gauge. construct not less than ten miles before the expiration of the second Road from san year, and, after the second year, not less than twenty-five miles per Diego eastward, when and how to
annum in a continuous line thereafter between San Diego and the Colbe built. orado River, until the junction is formed with the line from the east
at the latter point or east thereof; and upon failure to so complete it Upon failure, Congress may adopt such measures as it may deem necessary and proper Congress may to secure its speedy completion; and it shall also be lawful for said necessary to se- company to commence and prosecute the construction of its line from cure speedy com- any other point or points on its line; but nothing in this act contained pletion.
shall be so construed as to authorize the grant of any additional lands
or subsidy, of any nature or kind whatsoever, on the part of the GovRoad between ernment of the United States: Provided, That said Texas and Pacific Shreveport to be
Railway Company shall be, and is hereby, authorized and required to controlled a n d construct, maintain, control, and operate a road between Marshall, operated by Tex- Texas, and Shreveport, Louisiana, or control and operate any existing
road between said points, of the same gauge as the said Texas and Pacific Railroad; and that all roads terminating at Shreveport shall have the right to make the same running connections, and shall be entitled to the same privileges, for the transaction of business in connection with the said Texas and Pacific Railway, as are granted to roads intersecting therewith: Provided further, That nothing herein shall be construed as changing the terminus of said Texas and Pacific
Railway from Marshall as provided in the original act. Repealing Sec. 6. That all acts or parts of acts inconsistent with this suppleclause.
ment be, and the same are hereby, repealed.
ACT OF MARCH 3, 1873.
17 Stat., 598. AN ACT supplemental to an act entitled "An act to incorporate the Texas Pacific
1871, ch. 122, Railroad Company, and to aid in the construction of its road, and for other purvol. XVI, p. 573. poses," approved March third, eighteen hundred and seventy-one.
Face value of Be it enacted by the Senate and House of Representatives of the United bonds hereafter issued by Texas
States of America in Congress assembled, That the face value of all bonds and Pacific Rail- hereafter issued by the Texas and Pacific Railroad (Railway] Company, way Company under the provisions of an act approved March third, eighteen hundred may be in gold and seventy-one, shall, at the option of the company, be either in gold
or other lawful money of the United States, bearing interest, at like
option of the company, either in gold or other lawful money of the Former mort- United States; and any mortgage heretofore executed by said company, gages ir other require: securing bonds payable in any lawful money of the United States other ments of law than gold, and the bonds recited therein, and to secure which said have been com- mortgage was given, are hereby legalized, and said mortgage and
bonds shall have the same effect as though they had been authorized by the act to which this is a supplement: Provided, That in all respects the requirements of that law in regard to such mortgage and bonds have been fully complied with.
ACT OF JUNE 22, 1874.
AN ACT supplementary to an act entitled "An act to incorporate the Texas Pacific 13 Stat., 197.
Railroad Company, and to aid in the construction of its road, and for other pur- 1871,ch.122, vol. poses."
XIV, pp. 573, 579. Be it enacted by the Senate and House of Representatives of the United Texas and PaStates of America in Congress assembled, That the Texas and Pacific Rail-cific Railway way Company is hereby empowered to secure, by one or more mort-Company au
thorized to secure gages upon the whole or any portion of its line, the construction bonds
construction heretofore authorized to be issued, and to cancel the mortgage now on bonds by new' record with the Secretary of the Interior so far as the same can be done mortgages without prejudice to existing rights, and to substitute therefor the gage on record mortgage or mortgages hereby authorized, which substituted mort- with Secretary of gages shall expressly reserve all rights which may have been acquired
the Interior. under the existing mortgage: Provided, That the aggregate of the said bonds to be issued under and secured by said mortgage or mortgages
mortgages shall not exceed the limits heretofore fixed by Congress; and said thorized by this mortgages for the division east of Fort Worth shall embrace the roads act. and property of the Southern Pacific Railroad Company and of the Southern Trans-continental Railway Company, heretofore merged in be exceeded. and consolidated with the said Texas and Pacific Railway Company, under the authority and requirements of the laws of the State of Texas;
embrace. and which roads so merged as aforesaid shall for that and all other Consolidated purposes be deemed and taken to be a part of the said Texas and Pacific roads, how to be Railway, and shall, hereafter, be subject to all the provisions and lim- deemed. itations of the act of Congress incorporating said company and of the supplements thereto: And provided further, That nothing in this act shall be construed or have the effect to entitle said corporation to any other or further rights to public lands, or in any other respect as against further rights the United States, than such as by law it is now entitled to.
Limit heretofore fixed not to
No other or
On July 7, 1898, Congress enacted the following, which was one of the provisions of the general deficiency bill:
“SETTLEMENT WITH THE CENTRAL PACIFIC AND WESTERN Pacific RAILROADS: That the Secretary of the Treasury, the Secretary of the Interior, and the Attorney-General, and their successors in office, be, and they are hereby, appointed a commission with full power to settle the indebtedness to the Government growing out of the issue of bonds in aid of the construction of the Central Pacific and Western Pacific bond-aided railroads, upon such terms and in such manner as may be agreed upon by them, or by a majority of them, and the owners of said railroads: Provided, That any and all settlements thus made shall be submitted in writing to the President for his approval or disapproval, and unless approved by him shall not be binding:
“That said commission shall not agree to accept a less sum in settlement of the amount due the United States than the full amount of the principal and interest and all amounts necessary to reimburse the United States for moneys paid for interest or otherwise: And also provided, That said commission are hereby empowered to grant such time or times of payment by installment, and at such rates of interest, to be not less than three per centum per annum, payable semiannually, and with such security as to said commission may seem expedient: Provided, however, That in any settlement that may be made the final payment and full discharge of said indebtedness shall not be postponed to exceed ten years and the whole amount, principal and interest, shall be paid in equal semiannual installments within the period so limited, and in any settlement made it shall be provided that if default shall be made in any payment of either principal or interest or any part thereof then the whole sum and all installments, principal and interest, shall immediately become due and payable, notwithstanding any other stipulation of said settlement: Provided further, That unless the settlement herein authorized be perfected within one year after the passage of this act, the President of the United States shall at once proceed to foreclose all liens now held by the United States against said railroad companies and to collect the indebtedness herein sought to be settled, and nothing in this act contained shall be held to waive or release any right, lien, or cause of action already held by the United States.
“That there is hereby appropriated, out of any money in the Treasury not otherwise appropriated, the sum of twenty thousand dollars to defray the expenses of said commission in making the said settlement.”
Syllabl of decisions of the United States Supreme Court In cases affecting the bond-alded Pacific
rallroad companles and to which the Unlted States are parties.
No. 1. The United States v. the Union Pacific Railroad Company. (91 U.S., 72.)
Suit brought to determine whether the company is required to pay the interest before the maturity of the principal of the bonds.
Held, that “such was not the intention of Congress.”
No. 2. The Union Pacific Railroad Company v. Hall et al. (91 U.S., 343.)
EASTERN TERMINUS OF THE UNION PACIFIC RAILROAD,
Suit brought to determine the initial point of the Iowa Branch of the Union Pacific Railroad.
Held, that “the legal terminus of the railroad is fixed by law on the Iowa shore of the Missouri River; that the bridge is a part of the road, and the company is under obligation to operate and run the whole road, including the bridge, as one connected and continuous line."
No. 3. The United States v. The Union Pacific Railroad Company.
(98 U.S., 569.)
CREDIT MOBILIER CASE.
Held, that "no case for relief is made by the bill, and the decree of the court below dismissing it is affirmed.”
No. 4. The Union Pacific Railroad Company v. The United States. (99 U. S., 402.)
Case in some respects supplemental to that of “United States v. Union Pacific Railroad Company.” (No. 1.)
Questions determined are-
(2) What is included in net earnings ? “These earnings must be regarded as embracing all the earnings and income derived by the company from the railroad proper and all the appendages and appurtenances thereof, including its ferry and bridge at Omaha, its cars, and all its property and apparatus legitimately connected with its railroad.
* it should be found that the net earnings in any one year were not more than sufficient to pay the interest on the first-mortgage bonds accruing in said year, then the company will not be decreed to pay any portion of the said 5 per cent of net earnings for that year. But if the net earnings were more than sufficient to pay said interest, the excess will be subject, so far as it will go, to the payment of said 5 per cent; but the company will not be decreed to pay any more than said excess."
No. 5. The United States v. The Central Pacific Railroad Company. (99 U. S., 449.)
“This case, in all material respects, involves the same questions as Union Pacific Railroad Company v. United States” (No. 4).
Completion of road fixed as of the same date as the Union Pacific Railroad (November 6, 1869).
No. 6. The United States v. The Kansas Pacific Railway Company. (99 U.S., 455.)
Same as foregoing. Alleged date of completion of road, November 6, 1869.
Held, that the subsidy bonds granted only in respect of the original road terminating at the one hundredth meridian, are a lien on that portion only, and that the 5 per cent of the net earnings is only demandable on the net earnings of said portion (393.8 miles). No. 7. The United States v. The Denver Pacific Railway and Telegraph Company.
(99 U. S., 460.) Suit brought to recover 5 per cent of net earnings upon the whole line of the Kansas Pacific, including the branch from Denver to Cheyenne.
Held, that neither the company nor its railroad or property is liable in any way
Held, that if the amount of net earnings is insufficient to pay the interest on the company's first-mortgage bonds, the Government can not claim the 5 per cent which would otherwise be applicable to its subsidy. (See decision in Union Pacific Railroad Company v. United States, No. 4.)
No. 9. The Union Pacific Railroad Company v. The United States. (99 U. S., 700.)
Constitutionality of sinking-fund act affirmed.
No. 10. The Union Pacific Railroad Company v. The United States. (104 U.S., 662.)
Action brought to recover compensation for services in carrying the mails and employés. United States sets up counterclaim for 5 per cent of net earnings.
Held, The sixth section of the act of Congress of July 1, 1862, chapter 120, incorporating the Union Pacific Railroad Company (12 Stat., 489), constitutes a contract between the United States and the company, whereunder the latter, for its service in transporting upon its road, from January 1, 1876, to October 1, 1877, the mails, and the agents and clerks employed in connection therewith, is entitled to compensation at fair and reasonable rates, not to exceed those paid by private parties for the same kind of service.
(2) The contract is not affected by the sections of the Revised Statutes declaring that the Postmaster-General may fix the rate for such service when performed by railroad companies to which Congress granted aid, and he had no authority to insist that it was not binding upon the United States.
(3) The company, having been required to perform the contract, lost no rights by a compliance therewith, as it protested against and rejected all illegal conditions attached to the requirement. No. 11. Western Pacific Railroad Company v. The United States. (108 U. S., 510.)
In a suit brought by a district attorney of the United States to set aside a patent conveying public lands, objection was taken in this court that it does not sufficiently appear that the suit was brought under authority from the Attorney-General: Held, that “the objection not having been taken below, the fact of such authority could be inquired into and shown here."
On the evidence it appeared that the lands in question were mineral lands, and were known to be such by the applicant for the patent and agent for the railroad company at the time of the application. The patent was set aside. No. 12. The Sioux City and Pacific Railroad Company v. The United States. (110
U. S., 205.) Suit to recover an internal-revenue tax on the undivided net earnings of the plaintiff's railroad.
Held, that “in a suit to collect an internal-revenue tax on the undivided net earnings of the road, carried to a fund or to construction account, the plaintiff was not
INT 99—MIS, PT 1-19
entitled to have the interest upon these bonds deducted from its net earnings before settling the amount to be subject to the tax; but that the amount of that interest, if earned and carried to a fund or charged to construction, was taxable." No. 13. The Union Pacific Railway Company v. The United States. (116 U. S.,154.)
Suit brought to recover for transportation of the mails in accordance with the requirements of the company's charter.
Held, That case presents no question of law, and the motion is denied.” No. 14. The Union Pacific Railway Company v. The United States. (117 U. S., 355.)
Controversy as to what are “fair and reasonable rates of compensation" which are required to be charged the United States for the transportation over the defendant's railroad of mails, troops, supplies, etc., by section 6 of act of July 1, 1862.
Held, That “the amount claimed by the Treasury Department as fair and reasonable was proper Also, that the rates of transportation by the Union Pacific Railway Company for the United States govern transportation over bridge between Council Bluffs and Omaha." No. 15. The United States v. The Central Pacific Railroad Company. (118 U. S., 235.)
Suit brought to recover compensation for services rendered the United States in transporting persons and freight over those parts of its railroad in the building of which it had not been aided by the Government. The United States demurred. The demurrer was overruled and judgment rendered in favor of the claimant. The United States appealed.
Held, That “compensation is limited to services rendered by the aided roads. The construction of the second section of the act of May 7,1878, contended for by the appellee, is, therefore, right.” Judgment affirmed. No. 16. The United States v. The Central Pacific Railroad Company. (138 U.S., 84.)
NEW CONSTRUCTION. Held, That “the sums expended by the Central Pacific Railroad Company for betterments and improvements on its road, its buildings, and equipments, whereby the capital of the company invested in its works is increased in permanent value, are not to be regarded as part of its current expenses to be deducted from its gross receipts in reaching and determining the amount of the net earnings upon which a percentage is to be paid to the United States.''
This case is distinguished from the case of Union Pacific Railroad Company v.
This case arose upon demurrers and a plea to a bill in equity filed by the United States against the Union Pacific Railway Company and one hundred and seventythree other corporations and individuals, to procure the surrender and cancellation of certain land patents issued to the Kansas Pacific Railway and the Denver Pacific Railway and Telegraph Company, and for a decree declaring all conveyances of such lands clouds upon the title of the United States.
Held, That the right conferred by the act of July 1, 1862, as subsequently amended, upon the corporation afterwards known as the Union Pacific Railway Company, eastern division, to construct its road substantially in a direct line to Denver, and from thence northerly, to connect with the Union Pacific Railroad at Cheyenne, and to acquire a grant of public lands thereby upon each side of its railroad as constructed, was not affected by the act of March 3, 1869, in such a way as to make the Union Pacific, eastern division, terminate at Denver, and to cause its land grants to terminate there; but, on the contrary, the act of 1862 being a grant in præsenti, the company's right to lands upon each side of its road became fixed from the moment it proceeded, under the act of 1866, to establish its line of definite location so as to make the same extend from Kansas City westwardly to Denver, and thence northwardly to Cheyenne, and the act of 1869 is not to be construed as breaking the continuity of the line.
“If there were any doubt with regard to the interpretation of the act of 1869, the construction placed upon it by the Land Department for eighteen years, under which lands have been put upon the market and sold, would be entitled to considerable weight.”