In Union Pacific Railroad Company v. United States, the Supreme Court of the United States was asked to decide whether the Union Pacific Railroad Company was liable for the payment of taxes on certain bonds issued by the company. The company argued that the bonds were exempt from taxation under the terms of the Pacific Railroad Act of 1862. The Court held that the bonds were not exempt from taxation and that the company was liable for the payment of taxes on the bonds. The Court reasoned that the exemption from taxation provided by the Pacific Railroad Act of 1862 was limited to the bonds issued by the company for the purpose of constructing the railroad, and did not extend to the bonds issued for other purposes. The Court also held that the company was not entitled to a refund of taxes paid on the bonds, as the company had failed to prove that the bonds were exempt from taxation.

In Union Pacific Railroad Company v. United States, the Supreme Court was asked to decide whether a railroad company could be held liable for damages caused by its negligence in failing to provide sufficient cars and engines for transporting government property during wartime. The majority opinion found that the railroad company was not liable because it had acted in good faith and with reasonable care under the circumstances. Justice Field dissented from this decision, arguing that while there may have been some extenuating circumstances which prevented the railroad from providing enough cars and engines, they should still be held accountable since their failure resulted in damage to government property. He argued that if companies are allowed to escape liability simply because of an inability or lack of resources due to unforeseen events, then no one would ever take responsibility for any kind of negligence or misconduct on their part.