St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-06-07
FOUR MILLIONS AT STAKE.
UNCLE SAM WANIS MIS-. S7AKf08D'S
GREAT PROPERTY
IF HIS CLAIM Is PROVEN.

The Rich Widow May Become
Penniiess and the Stanford
University Loose Its Rich En-
disbursement Claim
Against the Holders Of tho
Central Pacific Grant
SAN FRANCISCO, June GA claim for
$4.000.O0O against the Stanford estate by
Attorney General Oiney as a prelim-
mary step to force the governments
claim against the holders of the Central
Pacific grant3 has caused the greatest
comment. 1t Is now learned that the
governments claim was presented on
Nay &c. but all attempt was made to
Keep the matter secret. i'll order that
financial operations of the estate might
not he embarrassed. The late Senator
Stanford's estate was lately appraised
at Sl7,600,00o. Since the appraisement,
heavy obligations have been met, and it
is stated now that enforcement of the
government claim would practically
wipe out the estate, not only leaving
the widow penniless, but cutting off all
the beneficlaries under the late sena-
tors will, including the endowment Of
81, 500, 600 to the Stanford university. 1t
is even said that the estate, after the
adjudication of its acknowledged debts
may not equal the claim of the govern
ment. In this event Senator Stanford's
deed of trust under which the univer-
sify which bears his name was founded
would not stand. In case the decision
of the courts should be in favor OF the
government. the university would nee
essarily be sacrificed to
SATISFY THE JUDGMENT.
Mrs. Stanford has stated that the gov
ernment's claim will be resisted to the
fullest extent of her ability. She re-
CARDS the proceeds in the nature of
ruse, and was not surprised at the filing
of the claim. Further than these state
ments she will not talk.
Mr.. Wilson. Mrs. Stanford's attorney,
in an interview. said:
1.-The opinion OF the attorney general
of the United States is entitled to a
great deal OF consideration, but he is
proceeding upon wrong assumption.
| am free 10 say that do not think the
government will ever be able to collect
thing from the estate of the late Sena-
tor Stanford. The government issued
the bonds to aid i'll the construction Of
the Central Pacific railroad, but neither
Mr.. Stanford or any one else ever agreed
to pay the government back. The bonds
operate on second mortgage. 1t is not
debt, and while the attorney general
is perfectly right that in California all
the members are personally liable for
the debts of the corporation, he is wrong
q MOI q To-.
You cannot compel man
TO PAY A MORTGAGE.
He can fOreclose the mortgage and
take the properly, but that is all. So in
the case of the Central Pacific railroad.
the government holds a second mort
gage on the company's property Of $780,
100000. The government by paying the
first mortgage of $50. 000.O00 can fore
close the second mortgage and get con-
troll OF the road. But it is not to be
presumed that the United States would
care to expend Sl20, 600. QUO to get control
of railroad that could be built for one
third that amount"
William f. Harris. the railroad COM
pany's chief counsel. gave similar
expression of opinion. Neither OF these
lawyers. however, enters into discus
sion OF the Allegations offered by Con
gresham Mcguire and others loudest
in the demands for prosecutions against
=. b. Huntington and the Stanford,
Croker. Searies and other estates.
Today is the last day under the law
which Mrs. Stanford has 10 accept or
reject the governments claim. 1t is
believed she will simply ignore the
claim, which in law amounts TO rejec-
ton. 1t will then be in order for the
government to institute suit Attorney
General Olney'S claim was filed in the
probate court in San Francisco before
Judge Coffee, where the Stanford estate
is now undergoing settlement.