Evening journal., 1894-06-18
WILLSUE BIG RAILROADS
Attorney General Olney Afterth
Central and Kansas Pacific.
HUNDREDS. OF MILLIONS WANTED.
orders Already Issued by the Authorities
For tho Preparation Of the Papers--suits
Against All Living Stockholders Of the
Pacific Railroads May Follow.

Against All Living Stockholders Of the
Pacific Railroads May Follow.
WAsHlNGroN, Juno 1S.-Attorncy Con
rrnl Olnev has ordered the preparation Of
the papers hi two big suits--one against
the Central Pacific and one against the
Unian and Kansas Pacific railroads Joint
ly. The aggregate OF tho sums % be claim
od by the government viii ~ $l7l, sbl,
537. Tho suit against thu Central Pacific
company will be for principal sum Of
SCI, $40, ESQ with interest thereon at the
rate Of per cent for 80 years, making q
total of SIS, 900, 00i Tho joint suit against
the Union and Kansas Pacific companies
viii be for the sum 81 $685. 53Q, 5l2, which,
with interest at g per cont for 80 years,
will mako total q 500, 80 G3a.60
For the preparation Of the papers IN
these important suits the attorney general
has retained Attorney Russell who has
had wide and varied experience Of DIM.
cult and intricate government litigation
In connection with tho French spoliation
claims. Mr.. Russell has been burrowing
in the voluninous records Of the Pacific
railroads and thcir relations with the
United States for several weeks and Is
now working day and night reducing his
findings to briefs.
Prepared In Secret.
While the utmost secrecy has boon oh.
served by the attorney general and his as
sistants with regard TO this matter, IL has
been learned that the suits will be based
upon the Same principle that underlies
\ the action taken in the case Of the late
| Senator Stanford The attorney general
holds that these railroad companies Were
4 a.
have earned and which should have beon
| applied TO the extinction Of their debts 60
the government These debts are Of long
standing, and although the principal Is
not yet due the companies have defaulted
in their payments to tho sinking fund and
make no secret of their intention 20 avoid
any further payments unless they can 50.
cure tho passage Of funding bill at least
as favorable rs that suggested by Mr..
Huntington himself. Tho attorney gen.
eral therefore has decided that in view q
the trusteeship Of these corporations the
division Of their earnings, cithor in th,
form Of dividends or in payments to the
collateral enterprises IN connection Will
which they have been operated, constitutes
q clear case OF breach OF trust.
This BREACH the attorney general holds
releases the government from the necessity
Of waiting until the principal Of the debti
falls due and gives 1t a standing In cour
To demand fun paymentof all government
obligations and also enables ii 70 pnrchas'
the alienated property and take it whor
ever it may be found.
PARTIAL victory Won.
The news that these suits arc being pre-
pared viii mako q decided furry in con
gross, where little handful 81 determines
men have been making q very hard iigh
to prevent the Huntington lobby iron
putting through the pending funding Dill
A partial victory has already boon won i
the house committee on Pnciflc railroad
on securing the amendment Go the bill
making its term so years instead Of 10
and increasing tho interest TO be paid
per cent yearly
The question whether the railroad pror
critics can be made 20 realize the amour
of the debt due Go tho government doc
not disturb the attorney general He
confident that the private property Of tn
various living stockholders and also III
estates Of those who are dead will b
ample to meet the governments claim
and he agrees fully with Congrcssme
Geary and Mcguire in the opinion tina
the roads win settle their Indebtedness
speedily II il becomes apparent TINT th
government is about to forecloso its liei