OCR Text |
Show A I'aritul Victory tor Government. Govern-ment. Washington, 27. Tbo case of the Union Pacific lailroad company against tho Uuiljd Slates, appealed from the conn of cUirua, and known as tho 5 ccr cent, case, was decided by the United S:atcs Supreme court to-day. " It is held that the road waa completed in November, IStVJ. As lho government maintained that all ordinary and usual expenditures for repairs aud improvements be deducted de-ducted from the cross receipts in computing com-puting the net earnings, but not interest in-terest on ita bonded indebted nera, except that on first mortgage bonds to which the government voluntarily subordinated its ciiim. out of the net earnings of each year since '09, the company, it is held, must first pay the interest on ita first mortgage I bonde; if after so do-ng a surplus re-! main, that turplus, so far aa it will go, is properly subject to the 5 par , cent, claim of the United Slate?, and must be en applied. Justices StroDg and Harlan dissent from the opinion, a9 to the priority to be given to inter-eat inter-eat on firti Diortgags bonde. - |