New-York tribune., 1894-06-07
FORD. JR.. UNIVERSITY.

,..hi,g,on June C-Attorney- General Clney to-
,,v gave 10 a reporter of the United Press an ex-
,,s,st,on Of his course In fling a claim against
,,s estate OF the late Leland Stanford He stated
,,., this had been done under his instructions by
rnnsd States District-Auorney Garter. OF San
r>.,c,sco on May o6 last. The Attorney-General
..d his action was based on statute Of Califor-
,s. making stockholders liable for debts contracted
xb,e they are such in the proportion OF their re-
s,Ac,iye holdings. As the maturing bonds issued
~ ,hs Central Pacific Railroad do not mature un-
N iSs-l@s the claim Of the United States is con-
,,rept and can only be presented to the estate in
o,Ss- that the assets may not be distributed. but
may ha held for the payment Of the claim when
aus The presentation Of the claim. the Attorney
General said was designed to prevent the possible
oosrstIon against It Of the California statute OF
limitations BY which the claim would have become
barred on May p.
San Francisco. June 6.-The claim for S5,OHcO
Sid agsinst the Stanford estate by Attorney
General Olney has caused the greatest excitement
Tbs late Senator's estate was recently appraised
at 1isMM Since the appraisement heavy OBJ
putons have been made. and il is stated now that
N, srtorcernent OF the Government claim would
prsciualy wipe out the estate. not only leaving
the vDov p4nniless but cutting of all the beneh-
Charles under the late Senator's VIII. including the
tr5ormspt OF S5oOo0 10 the Stanford University.
Its even said that the estate. after the llquloa-
ZION OF It's acknowledged debts. may> not equal the
amount OF the claim Of the Government. In this
event Senator S,anford's deed Of trust under
which Stanford University founded. would not
stand In case the decision OF the court should DC
IN favor OF the Government, and the university
would necessarily be sacrificed to sausiy the Juug
rlent.
Mrs Stanford in an interview has stated that the
Governments claim will be resisted TO the fuilest
extent Of her ability She regards the proceedings
at the filing OF the claim Further than these state
ments she would not talk. An idea OF the prop
able defence was given last night by Mr.. Wilson,
Mrs. Stanford's attorney. he said
The opinion Of the Attorney General or the
United States Is entitled 10 great deal or conSlqer
alton. but he Is proceeding a wrong assumption
am free TO say that l 90 not think the Govern
the estate OF the late Leland Stanford. The Gov
eminent issued the bonds % aid in the construction
Of the Central Pacific Railroad. but neither MI
Stanford nor any one else ever agreed 10 pay tAe
Government back. The bonds operate as n second
mortgage. The Government holds a second mort
gage on the company's property Of sGO,0OO.OcO The
government. by paying the first mortgage or S0l :
Wl0C foreclOse the second mortgage ana get
control Of the road. But II Is not 10 be presumed
that the United States would care 10 expend SlzV
1000 10 get control Of a railroad that could De
built for one-thiEd that amount"
To-day is the Est day under the law which Mrs.
Stanford has to- accept reject the Government s
Claim II IS believed that she will simply Ignore H.
which in law amounts 70 rejection. 1t VIII then De
N order for the Government 10 institute suit either
u the United States courts the Superior Court
In San Francisco. Attorney-General Olneys claim
before Judge Coffee, where the Stanford estate Is
nov undergoing settlement.