The times. [volume] (Richmond, Va.) 1890-1903, 1894-06-07
MILLIONS CLAIMED.
Excitement In California Over Attorney
General Olney's Action.


SAN FRANCISCO, June 6-The claim
for 100000 filed against the Stanford
estate by AttOrney-General Olney as a
preliminary step to force the Government
claim against the original holders OF the
Central Pacific grant, has caused the
greatest excitement II Is now learned
that the Governments claim was pre-
sented May 18th, but that an attempt
was made TO keep the proceedings secret
In order that the financial operations OF
the estate need not be embarrassed. The
late Senator Stanfords estate was recent
~ appraised at ST. 800 600. Since the ap-
praisement heavy obligations have been
met, and IL is stated now that the en-
fOrcement Of the Government claim would
practically wipe out the estate, not only
leaving the widow penniless. but cutting
OFT all the benefciaries under the late
Senator's VIII. including the endowment
of S2,5O0,000 to the Stanford University.
II is even said that the estate, after
the liquidation Of its acknowledged debts,
may not equal the amount Of the claim
of the Government. In this event Senator
Stanfords deed Of trust, under which
Stanford University was founded. would
not stand, In case the decision of the
court would be in favor OF the Govern
ment. and the university would neces-
sarily be sacrificed to satisfy the Judg-
ment.
Mrs. Stanford in an interview. has
stated that the Governments claim Will
be resisted TO the fullest extent Of her
ability. She regards the proceedings In
the nature of test case, and was not
surprised at the filing Of the claim. Fur
ther than these statements she would not
talk.
An idea Of the probable defence was
given last night by Mr.. Wilson, Mrs.
Stanford's attorney. In an interview he
THE opinion of the Attorney General
of the United States is entitled to a
great deal Of consideration, but he is
proceeding on wrong assumption. l
fra hot bg,.lr ha
Government will ever be able TO collect
anything from the estate Of the late
Leland Stanford The Government issued
the bonds in the construction of the
Central Pacific railroad, but neither Mr..
Stanford nor any one else ever agreed
TO pay the Government back. The bonds
Operate on second mortgage. IT is
not a debt. and while the Attorney-Gen-
eral is perfectly right that in California
the members Of corporation are per
sonally responsible for the debts Of the
corporation. he is wrong in assuming that
the mortgage is a debt.
mortgage. II borrow $1,000 on a piece Of
property valued at 500 the holder Of the
mortgage can't compel me to pay ii when
Il becomes due. He can foreclose the
mortgage and take the properly, and that
is all. So in this case Of the Central
Pacific Railroad Company. The Govern
ment holds second mortgage on the
company's property of 1000 900. The
Government, by paying the first mortgage
of $50 OOOO.OO6 can foreclose the second
mortgage and get control Of the road.
But 1t is not TO be presumed that the
United States would care TO expend Sl20,-
100000 to get control Of railroad that
can be built for one-third that amount"
William +. Harris, the railroad com
panys chief counsel. gave a similar ex-
preston Of opinion. Neither OF these
lawyers, however. enters into discussion
Of the allegation offered by Congressman
Mcguire and others loudest In the demand
for prosecution of the claims against c.
J. Huntington and the Stanford, Crocker
Searles, and other estates.
To-day is the last day. under the law.
which Mrs. Stanford mas to accept or re-
Ject the Governments claim 1t is be-
lieved she will simply ignore the claim.
Will then be in order for the Government
TO institute suit. either In the United
States courts or the Superior Court in
San Francisco.
IN the Probate Court in San Francisco be
fore Judge Coffey where the Stanford es-
tate Is now undergoing settlement
The late Senator Stanford's estate was |
recently appraised at N7,60.O00. Since |
the appraisement heavy obligations have !
been met, and il is stated now that the |
enforcement Of the Government claim /
would practically wipe out the estate, not |
only leaving the widow penniless. but |
cutting off all the benefciaries under the |
late Senator's Will, including the endow-
ment Of 81, 800, 600 to the Stanford UniVer-
sity. 1t is even said that the estate. after
the liquidation OF its acknowledged debts.
may not equal the amount OF the claim
IF the Government In this event Senator
Stanford's trust, under which Stanford
University was founded, would not
stand. in case the decision Of the courts
would be in favor OF the Government. and
he university would necessarily be sacri-
iced 10 satisfy the judgment.