The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1894-06-06

SAN FRANCISCO, June 5-The Examin
er's Washington correspondent telegraphs
60 Attorney s G.nerlk oln.y ha. fled .sains.
the estate of the late Senator Stanford q
claim in behalf Of The United States for
| the sum of $l5. 600 900. that being the pro-
portionate share of the debt of the Central
Pacific railroad that the estate owes tie
government. under the thsory that the
personal assets Of the Individual members
Of the original Central Pacific syndicsts
are liable for the debt OF that corporation
due or to become dusto the Uaited States.
He frankly discussed that part Of the
case properly made public at this time
and from him and other sources In the de-
partment much of interest was secured as
to the present status OF the matter.
The attorney general admit sd that the
claim had been flied. and explained that it
WAS fled under the California statute, in
order to prevent the statute OF limitation
from running against IL. That il, he ex
planned, while tss statute OF limitation
cannot run against the United States, Yet
AN estate against which the Unitsd States
has a claim may b probated, settled and
divided without regard to the United
States claim, unless such claim Is
filed within the period provided in the
state laws for sucn filing. otherwise an
estate against which the United States had
a possible clxik, could never he setIl.d. IL
is known that Attorney General Olney has
given - much time 10 the confederation OF
the Central Pacific matter as the other
duties of his Office would permit. 1t was
one of the first things brought to his at
tention when be assumed charge, and has,
perhaps, given him as much or more
trouble than any other question that has
como before him. The death of Senator
Stanford made necessary the action just
taken, lest his estate, like those OF the
other deceased members OF the original
syndicate, should be settled up aud di-
vidsd.
The attorney general has personal
knowledge Of the fate Of ths Hopkins
estate. as Mrs. Hopkins resided, after the
death OF Mark Hopkins. Ia Massachusetts,
and there married again and then died,
leaving behind her sensational Law suit
over tho big Hopkins estate. This, how
ever, was compromised and the estate
divided, IS in the case Of Croker and Col
ton.
The attorney general and other official s
of tho department engaged in pursuing
this matter have had frequent conferences
with the California representatives.. The
attorney general gained from them all tho
facts in their possession and their views OF
what should be done.
The general theory upon which the de-
the original Central Pacific syDdicats,
Huntington, Stanford, Hopkins. Croker
and Cotton. really constituted a co-parinsr-
ship, controlling at all times and abso.
lutely all the construction companies and
othsr corporations connected with or en-
gagged in building the road, ana Used such
companies and side corporations rs IA mere
agency to further their personal ends and
to erect the fabric of their fortunes.
Under this theory the failure OF the Cen
trail Pacific to meet it's engagements was
caused by the division Of tins road through
these agencies to the mem bers
Of the syndicate, that the persons were in
voluntary trustees Of the funds thus d.
vsrted. and that therefore their private
fortunes. thus ob,sinsd, being the ulti-
mate proceeds of such diverted earnings
OF the road, are properly liable for The
debt thus created and lief. unpaid.
It could not be learned what course the
department would pursue il the claim
against the STAFFORD estate is rejected.
further than that it would be prosecuted
under the California laws III the proper
court, as the depari msnts understand the
m alter TO be still iu the hands OF the pro-
bate court.