Monopolies -- United States; Railroads and state -- United States
Mr. Ackerman, of North Carolina, was attorney general. He was what might
be termed a strict constructionist. His views were conservative. As the
legal adviser of the executive department, his opinions were adverse to
the interests of the railroad companies on certain questions submitted
to him. At the request of the president he resigned, and Judge Williams,
of Oregon, was appointed in his stead. No one will question the
integrity of the present attorney general. Yet it was a well-known fact
that, at the date of his appointment, he was one of the attorneys of the
Northern Pacific railroad company; that he was fully committed to the
railroad interests, and that his appointment was urged by railroad men
in all parts of the country. By his appointment a friend of these
corporations became a member of the cabinet, and an important ally is
present whenever questions affecting their interests are discussed in
executive council.
A question of the greatest importance to these corporations was the
construction to be given to the statutes of the United States, and
especially the "Legal Tender Act." The first of the legal tender acts
was passed July, 1862. This was followed by other acts increasing the
amounts of legal tender issues. Prior to the passage of these acts,
railroad corporations had issued and sold many millions of bonds, and
stipulated that both principal and interest should be paid in gold. Soon
after the issue of legal tender bills their value depreciated, and from
that time to the present there has been, and still is, a wide margin
between their value and coin. If these railroad companies could pay
their bond indebtedness with legal tender at par, a saving of from ten
to fifteen dollars could be effected on every hundred so paid. In the
year 1869, the question whether this act was retroactive in its
operation or effect was presented to the supreme court. The court was
then composed of eight justices. When the case involving this question
was presented to and decided by the court, but seven of the justices
were on the bench. Of these, four, including the chief justice, were of
the opinion that the statute did not affect contracts made before its
passage, and decided that these railroad companies must pay their bonds
in coin according to the contract. This decision was not acceptable to
this vast corporate power. It was condemned by railroad men throughout
the country. The president was approached on the subject, and his great
influence was besought in the matter. Four of the justices (one-half of
the court) having held adversely to the corporations, a full bench could
not reverse their decision. To effect a reversal, one of the four must
change his opinion, or the number of justices must be increased. The
latter alternative was decided to be the more feasible, and the
president asked congress to increase their number to _nine_. The reason
urged was, that upon important questions, before a full bench, the court
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account