The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-06-09

The Claim Against Stanford's Estate.
Senator Hoar's resolution, which was
laid On the table yesterday, that the gov
ernment relinquish its claim upon the es-
tate of the late Senator Stanford is not
based upon reason or business but
upon sentiment. Because the Stanford
& wealth was devoted to a purpose, -
+ Senator Hoar thinks the estate
should be released from the moral
{ and legal obligations assumed by
1 its accumulation Senator Stanford
founded a splendid educational iustitu-
ton. If the governments claim should
be sustained and enforced, the institution
might have to be sacrificed. If there is
socialism that has truth or justice in it,
said Senator HOar, lit is the socialism
which devotes the wealth of the rich TO
the education of the poor"
The question to be first answered in this
case is, did the wealth of the rich" be-
long to Mr.. Stanford, or to the federal
government? Without the governments
aid to Mr.. Stanford's railroad, for which
il is now seeking to be REIN bursed, Mr.
Stanford would never have been worth so
many millions. His fortune was built
upon a mortgage, for the one-fourth part
of which, under the law, he was response
bic to the credtOr-the government.
Until the debt was satisfied, clearly Mr.
Stanfords fortune was not all his own.
He was responsible to the government for
SIS, 1000, 600; and he left Sl7, 600 COO And
if the money belonged to the government.
who made Mr.. Stanford the governments
almonerl In short, by what right did
Mr. Stanford give away money that did
not belong to him.
The governments claim, which, as told
in our dispatches, the Attorney General
has taken steps in the courts in California
to protect, arises out of the old Central
Pacific Indebtedness to the government.
Under the laws of California each indi-
vidual holder of stock is made liable for
the debts of the company contracted
while he is a stockholder, proportionately
to the amount of his stock Originally
the entire issue of Central Pacific stock
was held by and belonged to the Croker,
Hopkins, Stanford and Huntington syndi-
cate in equal proportions among the indi-
viduals. While the stock was so owned
Ou6 BOF6TLul6ub leuG us dlu 10 bl6 ROAD
and took s60,O00,00 600 of second mortgage
bonds. These bonds mature between
Jan. Is, 1895, and Jan. l, 1899. Under the
law Mr.. Stanford was liable for the pay
ment of one-fourth of these bonds. The
bonds are not yet due, but in order that
the claim of the government against the
estate might not be barred by the statute
of limitations of the state, the proceed
ings were instituted through the federal
district attorney at San Francisco. The
government had only until May q last to
save itself from the operations of the
statute of limitations, and on the day
previous its papers were filed. One
result of the proceedings will be to pre-
vent a final settlement of the Stanford
estate until after some action has been
taken by congress on the adjustment of
the Indebtedness of the Central Pacific
railroad. The estates of Hopkins and
Croker, two other of the original stock
holders, now deceased, have been already
settled, and there is some doubt as to how
far the government may be able to hold
their individual estates responsible.
Meantime, there is no room for senti-
mentality in the matter, or for the
practice of Mr.. Hoars truth and
Justice brand of socialism.