The morning call., 1891-10-06
THE DONAHUE ESTATE.
Hearing on a Petition Of Creditors for a
Settlement OF Claims.

SAN RAFAEL, Oct. ga case OF great
moment, which may result in the change of
ownership. or at least change In the con-
trolling Ipower, Of the DOnohue Railroad.
was heard before Judge F. Nj. Angellotti
in the Superior Court to-day. The Donahue
road is conceded to be the most profitable
holding of It's kind in this State. It en-
braces the main road from San Francisco to
Ukiah, the SOnoma branch, Donahue branch
and the Sebastopol and GuerneYile branches.
The road traverses section of about 175
miles of the most fertile valleys in the
State. There is no opposition line, conse-
quently the freight and passenger charges
are in ace trdance. The hearing was on a
petition filed by the creditors of the estate
of the late J. Mervyn Donahue. The
prayer stated that the claims of the petition
ers had been filed and allowed over year
ago. and that no disposition was ever
shown to settle said claims. The First Ma
tional Bunk, by S. G. Murphy. President,
has the largest claim, amounting TO $500
There were also two claimants for lesser
sums.
The petitioners were represented by
Messrs. Holiday. Woods, Plunkett. Will
kins and LoughbOrOugh. Each of the pc
titioners' attorneys argued at length. and
Attorney Hanlon for the contestants.
MeSSTS. DuIRin anu mcUlluil, oAtCulOTS
Of the Domaine estate, asked that an order
be made dismissiug tile citation, and that
the costs be taxed to the petitioners. Mr..
Hanlon claimed that the property of the
estate could not be sold without an order of
he court, and no such order havin g been
made or applied for the proceedings were
Irregular and ambiguous.
Attorneys for the petitioners argued at
great length, and quoted numerous author
tiles on which to base their statements.
They claimed that the executors of the
Donahue estate are not acting in accord
ance with the Instructions in the will of the
deceased, and that the property of the
estate should now be sold to pay the claims
of creditors, and that an order of court was
not necessary to validate the sale. A year
had passed since the claims had been al
lowed, and the executors showed no dis
position to make settlement. In con-
clusion, counsel asked the court to grant
the petition as prayed Tor.
Mr.. Hanl0n, in reply, argued that there
was no law By which ali executor could be
compelled to sell the property of an estate.
He ridiculed the idea of such proceedings.
All that the petitioners wanted was the
himble dollar. and that was all they cared
about Haulon compared the petitioners
attorneys TO ShylOck, saying that II the case
was decided for the ettioners they would
eXcIaim In one voice: "A Daniel has come to
Judgment" Mr.. Hanlon then ldpsed into
should be decided strictly ON points of law.
The tact of the petitioners having such a
brilliant array of legal talent should cut no
figure in your decision If the petition as
prayed for were granted. it would involve
the estate in undreamed-of complications.
To place the railroad stock on the market
would sacrifice the interests of the legatees
and the provisions OF the will could not be
carried out as desired"
After Mr.. Hanlon concluded his address
Judge Angellotti rendered his decision in
favor of the petition, everything the obiec-
ton of contestants. The concluding words
of Judge Angell0ttfs decision were to the
effect that the executors are at full liberty
to proceed, and it is their duty TO at once
sell such portion of the estate as would en-
able them to pay the creditors.
Mr.. Hanlon, on behalf of contestants,
filed an objection. and further hearing was
continued to Wednesday at 10 o'clock.
Much speculation is rife as to the probable
results and the future OF the DOnahue sys-
TEN. 1t is rum0rtd that in such event as
mentioned a local stock company would be
formed and the interest bought and held in
this State.