United States v. Union Pacific Railroad

Background

This case arose when the Union Pacific sought full payment for passengers carried at the Government’s request. Acts of Congress that granted land to railroads said the rail lines must be "free" for the transportation of "property or troops of the United States." The War Department began paying railroads half the private rate for certain government transportation. An Auditor refused full payment for several classes of passengers, the Comptroller upheld that refusal, and the railroad sued. The Court of Claims awarded full compensation to the railroad, and the case was appealed here.

Reasoning

The key question was whether six categories of people counted as "troops" under the land-grant laws: discharged soldiers, discharged military prisoners, rejected enlistment applicants, provisionally accepted applicants, retired soldiers, and furloughed soldiers. The Court examined the text and history of the statutes and the ordinary meaning of "troops" as a body of soldiers. It held that discharged men, discharged prisoners, rejected recruits, provisionally accepted applicants, and retired soldiers are not "troops." Although a furloughed soldier is part of the Army, travel home on furlough is for the soldier’s own purposes and does not qualify as "transportation of troops" under the land-grant acts. On that basis, the Court affirmed the Court of Claims’ judgment for full payment to the railroad.

Real world impact

The decision means railroads may be paid full passenger rates for carrying these categories of persons when the Government requests transport. The ruling leaves open other scenarios, such as members traveling as part of a moving army or soldiers traveling for distinct government war preparations.