Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-07-01

IL Is Asni"s' the Central rassnc.
unian Pacific and Kansas pnesue
h"i'renas for Over three.
aunr'ers Of siiiiion.


80 racine railroad ns a Corporation
Tor the sum Of se7,ss5. $50. with .n,orest
thereon at the rate OF per cent. Tor
period of thirty years. the toloi
amount OF the suit being for ,7soys..
Y9i' The government win also brine
sull mt,unst the Union Pacific ana the
sue railroads. as two asso-
olased eornoratprs. FOR total OF sss,-
sSs'sl2, s,en interest At per cent also
Tor thirty years. The amount due fr,i..
these roads. helns se2.qioasaeo,
The grand aggregate Of these suits
egalnst The three roads will be s,a,.-
ooS5sIeo. the largest amount for which
simultaneous suits have ever been
Drought In the history OF man. There
Is every probability, although II is i'm
possihie TO state II as a positive fact.
that this great sum Will be still further
Increased by suits brought against
three other small railroad corporations
buiit under aid OF the government
Although the law OF the state OF CALI
lvriilA IN regard TO individual liability
o. the stockholders does, not reach tho
Union Pacific and the Kansas Pacific,
yet me government will undoubtedly
plead that the original stockholdcrs Of
all the roads which were built under
government aid were In n degree
guardians OF certain trust, which was
tho accumulation OF sinking fund
ultimately TO be used for the satlsfac-
ton OF the debt Incurred In the cons
Hruotion and operation OF the roads.
Funds uniawfaii,' Invested.
The government will seek to prove
that the original trustees OF this fund
unlawfully divert Il from the purpose
for which It was Intended ana proceed
inf from that, viii seek TO recover. II
VIII not be necessary 60 show that
those who entered into the agreement
with the government ever SET aside
certain portions OF the earnings OF the
road as they were Obliged 10 do. II
WIN be sufficient to prove that the con-
tract required such proportion 10 DO
SCI aside and that It was not set aside.
When Il IL proven from the books OF
mo roads that there were earninga and
that they were diverted from purposes
10 which they should have been APP
piled. then It Ia held by the assistant
attorney general thai the United states
can pursue the misapplled funds to
whatHcaver place they have gone.
lf thia contention 10 sustained the es-
lAtos OF the original stockholders OF the
three roads aud The estates OF all their
heirs and asalgna car be held for salts
faction OF Judgment In favor or tho
United states, Execution OF such a
decision would involve In Itself litige-
ton. the extent Of which would bv all
most lncalculable.
This IA IN line with The suggestion of
Representative Maguire OF California
which has been several times hereto-
fore explained by the prcss. II Is prob
abs nut the government Will pursue
this course OF pleading breach OF trust
IN all three cases. 81
ny all who ARE Informed n tho rov.
rtnmcni'a intention II is believed that
the future " all government aided
rp0dn " some twenty years OF lltlgn-
Ton ~ the end OF which counsel fees
shd other Expenses viii have nearly
consumed the fortunes OF all private
individuals and cost the government
untold wealth. Already there are per-
soma who are seeking to put their
friends IN the position of counsel 10
the government ~ aid tho Attorney
general IN the prosecution OF these
suits. One OF tho candidates Is said Ia
be Mr. J. G. Carter OF New York. II
10, Of course. likely that on both sides
VIII be retained the beat legal talent "a
be had 10 the United States
Estate. Not Exempt.
or course, those suits, which have
certainly boon decided upon do not
shut OUT tho prosecution OF the gov
ernmentu olhIm against the cata,ea
OF the gtqekhQdera OF the Central Pa.
clio railway as begun In the claim
hled against the Stanford estate by tho
attorney general. In fact. the depart
mant of Justice believes that this claim,
which can bn easily urged against the
Stanford cslato and President Hunting
ton, is the nnst stable OF all. II u
secure. hut Il IN very difficult 10 reach
the divided estates OF crooknr ana
Hopkins in the same way. Tho Ma
giira idea spplica especially 10 these.
ana = also applicable against the Mis-
NJ url Pacific company.
N win be. 81 course, better II the
debt OF the government can be obtainod
from all Of the Subsidized roads ID
suits Of O common character, hut u
these rults fail, the prraonni liability
quits atm hold. and NIL In all tine SEEM
lug discrimination OF THU administers
ton 70 obtain thus money duo suylrtbly
to the government ~ lco'ninerdhbh, In
dttd. st.A s.t..
Auorn-y-Gsnera ohsy 10 a.spIsased
at the publication OF he fact that the
pors are boins prepared With view
10 bringing quits against tha dolirgpsnf
Pacific railroads to recover their debts
due 10 the government. The officiais
Of the department OF justice fear that
the publication may put the roads on
thor guard aii stlruull'e thep to
expedite the preparation OF their de-
Tense. Acooriingly. the attorney-Ern-
erai today made picltwicldan dcniai
OF the report that The rults will lie
brought He said merely that the de-
had not decided 10 bring the
sulta, and that the action 70 be taken
would depend upon later Developments
the preparation OF the pa
pers goes on, and whom Attorney Com
sral 0lnsy IA satisfed that his proof y
ali IN shape the suits will be brovxhe
II IA learned that tina suits HFainst the
finion Parlnc and Kansas Paeinc viii
he brought separately, and not jolntly.
az heretofore stated.
The secrecy which has marked the
work OF the department - Justice u
these cases was preserved In prsparfH4
the papers In this case Of the sstns %
tbs inte Leland Stanford. Of which the
hubble reoelvei no lntmatson or W
action taken until two wcsks ansr the
claim had been fled in tbs California
court.